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
19361 posts
17832 upvotes
Tarrana & The Ri…
cartfan123 wrote: 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.
Yea, ideally you get someone who stays 2 years max and moves. But I’m finding that many are staying put. That’s the strategy with predatory rent control. Find a place and lock in for 5 years. Your rent will stay the same. If I was a tenant I’d do the same thing.

Writing has been on the wall for landlords for quite some time now.
Deal Expert
User avatar
Feb 11, 2009
19388 posts
8082 upvotes
Toronto
RichmondCA wrote: 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.
Actually, I’ve noticed the contrary - typically in a brand new building, you have a rush of sellers leaving when the building first closes, results in an over supply and thus cheaper point of entry. It’s because some people who bought cheap during Precon simply want their profits and to get out.

Recently picked up a unit last month, and helped 5 or 6 clients get a unit in the same building for what I would say is a discount to others in the area including pre 2018.

Again this is a hit and miss, but the market generally doesn’t assign a premium based on pre/post 2018 to a material extent…other factors like building age in general, builder, and location play a much bigger role.
Realtor - Investment Properties
Deal Addict
Mar 2, 2017
3290 posts
6288 upvotes
Toronto/Markham
That's good insight and I totally buy into that as I've experienced it myself. My comment was more in isolation (timing aside when inventory floods).
RE Broker
Sr. Member
Oct 16, 2008
987 posts
179 upvotes
Toronto
Does this cap only apply to condos? Or all rental property? I have a detached home being rented out, would I be able to increase more than 1.2% on that next year?

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