Ontario Rent Control Exempt Condos

Whenever the condo Corp is registered, which is after closing.

wiab89 wrote: ↑ Not sure if there is a list somewhere, but the rules/regs for rent controlled and exempt buildings are a little murky for condos built around 2018.

I know there is a hard cutoff date of Nov 15, 2018 for rent control/exempt in Ontario, but for condos does that mean interim occupancy or closing date?

Is there a list somewhere of condo projects/buildings that are exempt from rent control?

I believe Nov 15 cut off is for condos that have closed completely with condo corp established? If it were based on interim occupancy, then some floors/units will be subject to rent control while others are not. Seems like a logistical nightmare to record keep in that situation.

moofur wrote: ↑ Whenever the condo Corp is registered, which is after closing.

Any links on this or legal perspective? Not trying to challenge just so much conflicting info online.

wiab89 wrote: ↑ Any links on this or legal perspective? Not trying to challenge just so much conflicting info online.

Actually the official wording is:

The rent freeze applies to most tenants living in:

rented houses, apartments and condos (including units occupied for the first time for residential purposes after November 15, 2018)

https://www.ontario.ca/page/residential-rent-increases

So I guess you could have a situation where a condo Corp was registered before November 15, 2018 but rented for the first time after November 15, 2018. The onus is probably going to be on you to prove that though if your tenant challenges your above guideline increase.

You may also run into a situation where you rented out during the occupancy period but I'm not sure that applies since the unit isn't necessarily yours. Realistically speaking though I doubt that you would have issues with it since your tenant would probably never be able to prove when you first rented it out (nor would the LTB).

I wouldn’t focus too much on this, when the liberals get back in they will slap rent control back on everything. So paying some sort of premium isn’t likely justified long term.

cartfan123 wrote: ↑ I wouldn’t focus too much on this, when the liberals get back in they will slap rent control back on everything. So paying some sort of premium isn’t likely justified long term.

Yeppers!

cartfan123 wrote: ↑ I wouldn’t focus too much on this, when the liberals get back in they will slap rent control back on everything. So paying some sort of premium isn’t likely justified long term.

Hm... I have seen this point a few times however I think the units posted 11/15/18 would be grandfathered in, the same way how the rent controlled unit were grandfathered in by the conservatives. The main reason is probably lawsuits, all of the billion dollar corps that own multiple rental buildings + all the new built purpose built rentals in the next few years did so thinking that their units would not be rent controlled. This would be interesting to see for sure given how ford has managed everything in the 3ish years its pretty much given that the liberals will be winning in the next election.

kangarooz wrote: ↑ Hm... I have seen this point a few times however I think the units posted 11/15/18 would be grandfathered in, the same way how the rent controlled unit were grandfathered in by the conservatives. The main reason is probably lawsuits, all of the billion dollar corps that own multiple rental buildings + all the new built purpose built rentals in the next few years did so thinking that their units would not be rent controlled. This would be interesting to see for sure given how ford has managed everything in the 3ish years its pretty much given that the liberals will be winning in the next election.

Won't happen. Didn't happen last time either.

cartfan123 wrote: ↑I wouldn’t focus too much on this, when the liberals get back in they will slap rent control back on everything. So paying some sort of premium isn’t likely justified long term.

Might be awhile if Duca is the best they can come up with.

sircheersa wrote: ↑ Might be awhile if Duca is the best they can come up with.

Yep, instead of trying to come up with pragmatic policy Del Duca seems to want to crowd Andrea's space. That said if it's not a year from now, then 5 years. And who knows Ford is so woke now, he could do it. Look at how he treated landlords the last 18 mths.

I'm still of the opinion that ascribing much long term value to non-rent control units isn't something I'd do. Treat it as a bonus for now.

cartfan123 wrote: ↑ I wouldn’t focus too much on this, when the liberals get back in they will slap rent control back on everything. So paying some sort of premium isn’t likely justified long term.

That is just your guess, for now though it really gives flexibility on newer condos. Things like this pandemic, when you can lower your rent without worries that you will not be able to rise it.
Easy to start renting a new unit as well as usually in first year you face more competition in the same building and lower rent in first year helps to overcome it.

I see most of the new building do it, rent first year for less than market.

This exemption can be around for long while as this model works for both tenants who wants security (get older buildings) and at the same time stimulates builders and investors, so yes it does worth something.

ilim wrote: ↑ That is just your guess, for now though it really gives flexibility on newer condos. Things like this pandemic, when you can lower your rent without worries that you will not be able to rise it.
Easy to start renting a new unit as well as usually in first year you face more competition in the same building and lower rent in first year helps to overcome it.

I see most of the new building do it, rent first year for less than market.

This exemption can be around for long while as this model works for both tenants who wants security (get older buildings) and at the same time stimulates builders and investors, so yes it does worth something.

Yea, it's also not immediately clear to me OLP would reverse it. They got desperate last election because Wynne was so hated and they went hard left to try and capture NDP voters.

The end result was the worst performance in party history and losing party status. I am not sure they would go that route again.

Also the 905 is growing much faster than 416 and already has a disproportionate amount of seats which is set to increase. Home owners are going to be driving this boat for decades to come. Unless they remove FPTP which is very unlikely.

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napoleonz wrote: ↑ Any new experience anyone can share about this? Is rent control cut-off date Nov 15, 2018 based on closing date, or interim occupancy date of the building?

It's based on the date when any unit in the building was first occupied for residential purposes.

That could be hard to determine so you are probably looking at the date the first residential unit was given occupancy date.

...

napoleonz wrote: ↑ Do you see a way to find out, about the first residential unit occupancy date? The building I'm looking at had their first ever rental listing in Jan 2019 at the low floors. By my own un-official research on forums, I see people talking about occupancy around that time too. But it's hard to tell if there were some units that got occupancy before that (which will be very close to Nov 2018).

Those can be tricky, try calling the builder or the management of the building to see if they can answer.

napoleonz wrote: ↑ Do you see a way to find out, about the first residential unit occupancy date? The building I'm looking at had their first ever rental listing in Jan 2019 at the low floors. By my own un-official research on forums, I see people talking about occupancy around that time too. But it's hard to tell if there were some units that got occupancy before that (which will be very close to Nov 2018).

Just a guideline, but generally speaking builders allow occupancy on the basis of one floor per week. Do remember that builders want units to be occupied asap so they can charge occupancy costs plus maintenance fees. It's not in their interest to delay occupancy.

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senasena wrote: ↑ It's based on the date when any unit in the building was first occupied for residential purposes.

That could be hard to determine so you are probably looking at the date the first residential unit was given occupancy date.

So its not actually based on the date the condo corp was first established / condo was closed as a poster from months ago above mentioned? Its actually based on the first occupancy date of the building? Why can't the government just put more specific wording...