April brought about announced changes for Landlords and Tenants in Ontario. While the pending policy updates appear to favour tenants’ rights at a first glance, with a closer look, the purpose of the new legislation is to improve the landlord/tenant relationship and eliminate surprises on both sides.
Two significant changes are:
Expanding rent controls on all properties
Developing a Standard Lease for all Ontario Tenants
Let’s take a closer look.
Expanding rent controls on all properties
Previously, landlords who owned a property that was built after 1991 would be able to raise rents on existing tenants – without caps. With the new proposed legislation, the cap for raising annual rents will be 1.5% plus the rate of inflation. This change positively affects tenants as rent increases will be controlled. This change also allows landlords to plan for their future knowing the allowable increases far in advance, and “evens the playing field” for landlords who operate properties that were built prior to 1991.
Developing a Standard Lease for all Ontario Tenants
Developing a standard lease would prevent landlords from moving into a rental unit temporarily for the purpose of raising rents. The purpose of this legislation is to prevent landlords from evicting tenants for the pure purpose of increasing rents for the next tenant. The control would protect tenants from seeing drastically increased rents in desirable neighbourhoods.
The controls in the market will affect landlords who were used to seeing large increases year over year. Landlords now have to plan for a slower, more steady, climb. The tenants will also be able to better budget expenses, as the year-over-year increases will be set.
Investing in the real estate rental market is a valuable addition to any portfolio. If you own a rental property or are considering becoming a real estate investor, contact the Shirriff Wells team today. We are here to discuss the options that are best suited for your needs and financial goals. We Look forward to connecting with you soon at www.shirriffwells.com.
