Real Estate

Ontario Rent Increase Cap of 1.2% for 2022

  • Last Updated:
  • Aug 31st, 2021 6:38 pm
[OP]
Deal Expert
Feb 29, 2008
19377 posts
17845 upvotes
Tarrana & The Ri…
rob444 wrote: In hindsight you should have offered a cash back rebate for that time, and kept rent the same on paper. Then post-pandemic you could have just stopped the rebate and rent would still be where it was.
Yup. There was a discussion about this last year and that’s exactly what Some of us proposed but of course you had people calling it illegal. It isn’t if you do it properly.

Your tenant will tell you it’s not fair and rents should be lowered to reflect the condos, but when market rent goes up they’ll tell you that you can’t raise rent above the legal limit. Saw this from a mile away.

So there are landlords that dropped rent by $500+. No way those tenants will agree to pay the going rate even though that’s what they wanted when it benefited them.
[OP]
Deal Expert
Feb 29, 2008
19377 posts
17845 upvotes
Tarrana & The Ri…
pizzaclown wrote: Oh noes I can't make money leeching off the human need for shelter boo hoo I'll call an avowed anti-government PC party "communist"
No one is forcing people to rent luxury condos. The worst thing you could ever do is group all tenants in the same basket. Minimum wage workers looking for affordable housing is a hell of a lot different than bankers looking for a deal on luxury rentals they can easily afford. That’s why you get no sympathy.
Deal Addict
Feb 7, 2018
1126 posts
1924 upvotes
canoek wrote: This is has to be some kind of joke no?
Ontario PCs under Ford are the joke…
Deal Addict
Feb 7, 2018
1126 posts
1924 upvotes
JayLove06 wrote: NDP will just ban rent.
Don’t give them ideas… next they will say tenants living for more than 3 years in a unit get an equity stake in the property or some BS like that
Sr. Member
Aug 17, 2018
628 posts
1127 upvotes
JayLove06 wrote: Image

New York 2.5%
California 5% + inflation
BC - between 2-3% (pre Pandemic 2.6%)
Quebec - pre pandemic 3%
Illinois - No rent control
Massachusets - No rent control
Florida - No rent control

Some of the most pro tenant anti-landlord laws on the planet and there is still the complaint of affordability and sky high rents. After a pandemic! The govenrment has already shown you what they think of landlords. Why would anyone jump into the landlord game in 2021 in Ontario?
So that makes we wonder, why are you a landlord in Ontario? The joke is on you! :D
Deal Expert
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Feb 11, 2009
19395 posts
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Toronto
This is why buying anything built post Nov 2018 is key :) [For now...]
Realtor - Investment Properties
Sr. Member
Jul 18, 2020
753 posts
1217 upvotes
You think keeping rent increase < 2% when RE goes up in price 20% will be a good thing for the tenant in the future? No more new rentals going forward, existing landlord will be super picky, and life for renters in the GTA is just going to be harder period. It is supply and demand.
[OP]
Deal Expert
Feb 29, 2008
19377 posts
17845 upvotes
Tarrana & The Ri…
JanZ95915 wrote: So that makes we wonder, why are you a landlord in Ontario? The joke is on you! :D
I’ve been a landlord for over a decade. The joke isn’t on me, trust that. I’m free to get out at any time shift I’ve already stated I would do. Will keep 1 rental.
[OP]
Deal Expert
Feb 29, 2008
19377 posts
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Tarrana & The Ri…
lechan wrote: You think keeping rent increase < 2% when RE goes up in price 20% will be a good thing for the tenant in the future? No more new rentals going forward, existing landlord will be super picky, and life for renters in the GTA is just going to be harder period. It is supply and demand.
Renters can’t think that far ahead. Just like how they thought low pandemic pricing was here to stay….less landlords, less rentals in the market hurts renters.
Sr. Member
Aug 17, 2018
628 posts
1127 upvotes
JayLove06 wrote: I’ve been a landlord for over a decade. The joke isn’t on me, trust that. I’m free to get out at any time shift I’ve already stated I would do. Will keep 1 rental.
Oh, great! Yes, please release that inventory. If all the other landlords follow suit because rentals are unprofitable and too much of a headache, maybe we see a decline in condo prices. ;)
[OP]
Deal Expert
Feb 29, 2008
19377 posts
17845 upvotes
Tarrana & The Ri…
JanZ95915 wrote: Oh, great! Yes, please release that inventory. If all the other landlords follow suit because rentals are unprofitable and too much of a headache, maybe we see a decline in condo prices. ;)
Condo prices will not be impacted. Expect prices to go higher in the city. Higher rents means higher condo prices. Less supply means higher prices, higher rents.

If you think these tactics from the government will lower rents and condo prices I feel sorry for you. It just makes things harder for renters.
Sr. Member
Jul 18, 2020
753 posts
1217 upvotes
JayLove06 wrote: Condo prices will not be impacted. Expect prices to go higher in the city. Higher rents means higher condo prices. Less supply means higher prices, higher rents.

If you think these tactics from the government will lower rents and condo prices I feel sorry for you. It just makes things harder for renters.
I just laughed when I see 1 br (10 yrs old condo) on Hwy 7 is selling for 550K + these days
[OP]
Deal Expert
Feb 29, 2008
19377 posts
17845 upvotes
Tarrana & The Ri…
lechan wrote: I just laughed when I see 1 br (10 yrs old condo) on Hwy 7 is selling for 550K + these days
Complete madness!
Sr. Member
Nov 22, 2017
942 posts
696 upvotes
Increase supply and get rid of rent controls for new apartments. Not all renters are the same.
Deal Addict
May 23, 2006
1566 posts
586 upvotes
Vancouver
When is BC rent increase % for year 2022 going to be released?

All landlords need to give notice to tenants by end of September in order for the rent increase to be effective Jan 1, 2022.
Sr. Member
Mar 28, 2017
613 posts
491 upvotes
Lol I kicked my tenants out to build mining computers. Now a few of them are calling back asking if my space is available. Hell no it's not.
Deal Addict
Mar 2, 2017
3292 posts
6294 upvotes
Toronto/Markham
deal_with_singh wrote: This is why buying anything built post Nov 2018 is key :) [For now...]

Going to push back on this....have you done the ROI calc on the premium you have to pay PSF for a Nov 18 or newer build for the rent increases?

It's a hard sell imo.
RE Broker
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Sep 8, 2007
9461 posts
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Way Out of GTA
It’s crazy how left the both the CPC and Ontario PC have become and not just on this front. Doesn’t bode well going forward as landlord in Ontario.

This govt trick of reporting low CPI and using that to keep the interest costs on big govt spending under wraps is starting to bubble over. I can’t remember when inflation has been such a big issue with the masses. Of course all of these parties will lie and say they are going to fix it (usually by more spending and continuing expansionary central bank policies).

The only way to hedge if you are remaining a landlord here is to try and focus on younger upwardly mobile types that might only stay a year or two anyways. We aren’t even close to any return to normal in society and rents are already moving up and that trend is likely to continue.

Even since Jan 2020 to now I’ve only had one turnover across 5 properties. And that was snapped up as soon as the first person saw it. And they happen to fit the criteria also.

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