News flash to all landlords and tenants in Ontario: There are new changes to rent control in Ontario that will impact you and potentially change your decision making when it comes to your real estate plans!
When the Liberal government announced in April 2017 that rent control will apply to all units in Ontario, no matter where or what age, that was a big change from the previous law that restricted rent controls only to units built prior to 1991. In this most recent change announced by the current PC party, any unit that is newly built and previously unoccupied from November 16th, 2018 onwards will not have rent control restrictions. Landlords will not need to abide by the government mandated rental increase amounts, and will be able to increase the rent to whatever amount is desired, so long as the required 90 days notice has been provided to the tenant, and only after at least 12 months of a lease has passed.
If this sounds completely different from what you heard the premier of Ontario talk about on the campaign trail leading up to the provincial election, it’s because it totally is different. Here’s a quote from Doug Ford on the PC government’s own party website:
“I have criss-crossed the province, and from one corner to the other, the people of Ontario have told me they are struggling. I have listened to the people, and I won’t take rent control away from anyone. Period. When it comes to rent control, we’re going to maintain the status quo.”
Looks like that wasn’t actually a promise that he was able to keep…
What does this mean for you as a tenant? Well, perhaps units built before November 16, 2018 will be more attractive to you because there are very strict rent controls in place. As a landlord, perhaps newer construction will be more temping since you have the unlimited ability to increase the rental rate whenever it comes time for you to raise the rent.
What this whole elimination of rent control in ontario for units built and occupied after November 16, 2018 is supposed to do is increase the building of units, and thus, increase the supply in the market so that more affordable options exist and rents don’t skyrocket due to scarcity. Noted economist do support this idea, but time will tell how this will play out in the complex and dynamic Toronto real estate market where it’s always a challenge to keep pace with everything that’s happening.
Contact us to find out more and get the real scope on the downtown Toronto market. We’re happy to help buyers, sellers, renters and landlords. Reach out below!