Posts Tagged ‘Newmarket landlords’

Will There Be An End To The Rent Exemption That Removes Rent Control From Nearly All Rental Units Built After 1991?

Wednesday, March 22nd, 2017

OLA campaign 1

We Want To Hear From The Small Landlord Community. The Ontario Landlords Association Will Be Making a Submission to the Ministry Sharing Your Thoughts & Concerns on a Bill Which Could End the Exemption That Allows Rental Properties To Avoid Rent Control If The property Was Built After 1991

Real estate prices have appreciated greatly in Toronto and the GTA over the past several years. And it looks like property prices will continue rising in 2017.

With these rising property prices, many areas have also seen rising rents. This has led to politicians looking to make changes in how the residential landlord-tenant system works in Ontario.

Why are rents rising?

It’s because most of the new rentals on the market are due to the investments of hard working and risk taking small landlords and investors. These are often working people who invest in a “income property” as a nest egg to help their financial future.

With costs rising these small landlords need to charge rents that cover their costs of owning the property. With prices rising, they also have to spend more buy the property. As they are also small business people they have invested with the goal of attaining at least some sort of profit.

Who are these Ontario landlords?

Many of these investors/landlords are people like you reading here. They are people who have jobs and are working very hard to build for their retirement.

They save their money, and invest…taking a risk to provide high quality rental properties for tenants with the hopes of a fair and decent return.

These investors/landlords include teachers, fire-fighters, police officers, dentists, contractors, secretaries, nurses, truck drivers, small business owners, retirees, etc.  These are the people who make up the OLA community.

These investors and landlords are not rich corporations hoping to build their share price on the Toronto Stock Exchange.

What changes are being proposed?

An NDP member has put forward a private member’s bill that will end the rent control exemption for rental properties that were built after 1991. The NDP claims this exemption puts tenants at risk and is putting many people who rent in a difficult situation.

What is the 1991 exemption all about?

We have written about the 1991 rent exemption before. In fact, before the OLA began discussing this it was rarely mentioned in the media and few people even knew about it. As with so many aspects of the rental business in Ontario after the OLA began discussing the issue it became well-known and a “hot issue”.

Why is this such a hot issue now?

It’s because rents are increasing. A Global News report said the average rent for a Toronto condo is now over $2000/month. So many tenants are justifiably concerned about rent increases and being able to afford being able to stay in their rental property.

What Do OLA Members Say?

Our landlord community consists of landlords all over Ontario.  And we have owners of all types of rentals.  These range from condos to basement apartment rentals to duplexes and even larger buildings.

The issue of rent control has been a big issue for our community for years. When this latest development was announced landlords were quick to begin to share their thoughts and concerns.

Here are some of the thoughts and points of discussion in our busy member forum.

(1) This is a Business And I Need To Keep Up With Costs

Many landlords worry about being able to cover their costs. They aren’t out to “gouge” tenants (as successful landlords know how valuable good tenants are). If rents can’t be raised to cover costs it will lead to financial hardship, especially for small landlords.

Others stated that landlords take a risk when buying a property to rent out and our investments are important to the Ontario economy. As they are running a “business” they need some flexibility in how they operate.

An Ottawa landlord said investors like her  fund the construction industry and the building trades. We hire property managers and provide business to real estate agents.

We are also the people who are providing new rental accommodations. Changing the rules for rent control will impact jobs and the entire Ontario economy.

(2) I Bought My New Build Rental Property Because of the 1991 Exemption

Many new landlords who bought condos are shocked at the news that they may be covered by rent control.

One new condo investor wrote that if the exemption is stopped she will never ever trust this government again.

(3) My Rentals Aren’t in Downtown Toronto and If I Raise Rents Too High Tenants Will Just Move

Some landlords think the government is too focused on the situation in Toronto and not aware of how things work in the rest of Ontario where real vacancy rates are not that low. A Barrie landlord said while having the freedom to cover costs is important, if she raises rents too high her tenants will simply move.

(4) The 1991 Exemption Is Unfair To Landlords With Older Rental Properties Because The Rent Increase Guideline is Far Too Low

Many members of our Ontario landlord community own older homes. A Newmarket landlord said he buys older homes, invests his hard earned money to fix them, renovates them, makes them attractive, and then rents them out. He wonders why are these landlords punished with an extremely low annual rent increase guideline that is capped?

(5) Let’s Get Rid of Rent Control for All Rental Properties in Ontario Whatever the ‘Age’ of the Property

Some members of our community believe the real solution is to end rent control for all Ontario rental properties. This would lead to a lot more investment into rentals. This would give tenants more options and good landlords with great rental properties would be able to invest more with confidence.

Proposal To End the Rent Control Exemption on Properties Built After 1991

It seems so simple at first glance. The headlines are all about tenants who are being priced out of their rental property as rents rise.

In reality it’s more complicated.

The issue of rent control and rental properties requires serious research and the input of all stake-holders.

And small landlords are key stake-holders and our voices need be heard.

The Concerns From Tenant About Ridiculous Rent Increases Is a Serious Issue

Many of our members rented before and are concerned about the challenges tenants can face with a ridiculously high rent increase.  The problem is legislation covering both large corporate landlords and small landlords will hurt the ‘small players’ who take tenant concerns seriously.

For example one of our members wrote “Good tenants are the key to success as a landlord and investor.  I haven’t even raised rents on my good tenants for the past three years because I value them!”

Another landlord said: “Okay, make it fair for all rentals of all ages but make the annual rent increase more reasonable because now it’s far too low!”

Improving the Ontario Rental Industry to Benefit Landlords and Tenants

The stakes are high as any knee jerk media friendly policies could seriously impact the Ontario rental industry in a very negative way.  This will hurt both good landlords and good tenants.

Bad policy decisions based on media click-bait stories can lead to very bad results for landlords and for tenants. It’s important the government meets with all stake-holders before such an important policy decision is made.

We will make a submission to the province and want to hear your landlord and tenant concerns about rent control.  Contact us at landlordfairness@lobbyist.com.

We will make sure your voices are heard.

Any new policies regarding rent control need to be part of a much larger overhaul of the Residential Tenancies Act and the Landlord and Tenant Board. Let’s improve the Ontario rental industry for tenants and small landlords who have invested in properties.

Ontario Landlords – How To Attract Good Tenants

Wednesday, October 1st, 2014

 Ontario Landlord Marketing How To Make Your Rentals Attractive For Great Tenants

Great Tenants Want to Rent Attractive Properties. Here’s A Way To Get Tenants To Want to Rent Your Rental Property!

Ontario landlords know the importance of renting to good tenants.

This means landlords need to screen applicants carefully before handing over the keys to their rental unit.

Experienced Ontario landlords know careful tenant screening should also include an Ontario landlord credit check on all potential renters.

How Can I Find Good Tenants?

In order to rent to good tenants you need to be able to attract them to your property and they need to want to rent from you.

This means you need to have a well-maintained and high quality property.

How Can I Make My Rental Property More Attractive For Good Tenants?

A recent post at the Ontario Landlords Forum from a Toronto landlord asked how to improve curb appeal.

Here’s the post:

“I have a multiplex in Toronto that I put a lot of time and money into to make the inside very attractive. I’m in an area where this is a lot of competition for qualified tenants… The problem is the outside of the property isn’t appealing and it turns off a lot of good potential tenant from even wanting to view the inside of the rental. How can I improve the curb appeal of the property without spending a fortune?”

Improve Your Rental Property By Planting Trees and Shrubs

An Alberta landlord replied with the advice of planting trees and shrubs to improve curb appeal. This landlord said after adding some leafy shrubs and a few trees her rental property attracted a lot more applications from interested tenants.

A BC Landlord echoed the opinion and stated that the trees near his rental has attracted a lot of great tenants.

Fortunately, for landlords in Toronto and the GTA planting trees and shrubs is a terrific and affordable options thanks to a program called LEAF.

LEAF – Local Enhancement & Appreciation of Forests

LEAF is a non-profit organization that has been offering a subsidized tree planting program in York Region for the past 18 years.

LEAF offers a full-service planting program to help multi-units in Toronto and York Region plant trees and shrubs on the private property around buildings. This includes a consultation and site assessment with one of our expert arborists and full planting service.

Melissa Williams, Acting Program Manager for LEAF

The Ontario Landlords Association interviewed Melissa Williams for more information on the LEAF program.

We thank Melissa for her enthusiasm to help landlords know about the program and how it can help landlords create attractive rental properties.

1.            Could you tell us how your program can help residential landlords?

LEAF offers a full-service planting program to help multi-units in Toronto and York Region plant trees and shrubs on the private property around buildings at affordable rates. This includes a consultation and site assessment with one of our expert arborists and full planting service. LEAF is a non-profit organization that receives funding to offer this subsidized program for private property plantings. 

Trees and shrubs increase the aesthetic value of your property which in turn can increase property value by as much as 30%! Trees also reduce air and noise pollution, lower summer air temperatures and provide much-needed shade.

2.            Are all landlords in Toronto and York Region eligible for this?

All residential landlords in Toronto and York Region are eligible for the program.

3.           We have lots of members all over Ontario.  

                    Can Mississauga landlords and Ottawa landlords access the program?

At present time we only offer the program in Toronto and York Region. We would recommend that landlords in other cities check with their local municipality or conservation authority to see if similar programs are offered in their area.  

4.            What happens during the consultation/assessment of the property?

During the consultation, a LEAF arborist will assess the site conditions such as soil type, sun exposure and spacing restrictions, and speak with you about what your preferences are in terms of trees and shrubs for the property.

The arborist will then recommend suitable native species that will do well on your property, and determine planting locations with you as well. We would then come back and plant the trees and shrubs for you in either our spring (April-June) or fall (September-November) planting season.

5.            What are the costs involved for the landlord and what does this include?

The cost for the program ranges from $150-$220 per tree, depending on the species selected. This price includes a site consultation with an arborist, a 5-8 foot tall tree, and delivery and planting service.

The full value of this service is approximately $300-$400, and the difference is paid by our funding partners. Native shrubs can also be purchased for $25 each.

6.            How can landlords interested in this opportunity get started?

We recommend visiting our website at www.yourleaf.org/multi-units-and-businesses to learn more about how the program works and to fill out our application form. We can also be reached by email at info@yourleaf.org

Make Your Toronto or York Region Rental Property Look Good!

Toronto and GTA landlords can take advantage of this program to make your rental property more attractive to renters.

Whether you are landlord in Toronto or cities in the GTA make your rental property sparkle and attract good tenants.

Ontario Landlords: Rent Increase Guideline 2014

Wednesday, December 25th, 2013

December 25th, 2013

Ontario landlords Rent Increase Guideline 2014

How Much Can Landlords in Ontario Raise the Rent in 2014?

If you are a landlord in Ontario you face what is called ‘rent control.’

This means in many cases how much you can charge for rent is controlled by the government.

As we wrote in June about how much Ontario landlords can increase the rent in 2014 the government announces a Rent Increase Guideline, usually in the early summer before the coming year.

This is the announcement from the Ministry of Municipal Affairs and Housing informing Ontario landlords rent increases for the next calendar year.

We have had lots of landlords from all over the province asking us to clarify and confirm how much they can raise the rent in 2014 and here is your answer:

HOW MUCH CAN ONTARIO LANDLORDS RAISE THE RENT?

Ontario Landlords Can Raise the Rent 0.8% in 2014

That is the allowable increase according to the Ministry of Municipal Affairs and Housing for the province.

Is the Ontario Rent Increase Guideline Too Low?

Many landlords think it is.

After all, landlords still have not been allowed to catch up to the added costs for when the HST was implemented.

Is 0.8% a realistic example of the increased costs Ontario landlords face?

Whether you are a Toronto landlord, invest in Ottawa rentals or have properties in a smaller area and become a Newmarket landlord, many property investors and landlords say no.

Let’s look at some of the increasing costs for  landlords in our province:

1. How about the increased prices of your property taxes?

2. What about increase costs from the people we depend on to maintain our rental units?

3. Many small landlords are facing increases over 5% for services such as water.

I Need To Do Major Improvements on the Property Including a New Roof.

Is There A Way To Increase the Rent More Than 2.5%?

If you want to raise the rent more than the guideline you can apply for what is called an Above Guideline Increase through the Landlord and Tenant Board.

You can apply if the cost of your municipal taxes and charges or your utilities have increased more than the following formula: the rent increase guideline + 50%.

You can apply for increased costs due to capital expenditures or investing in security services.

Are All Residential Landlords Covered By The Rent Increase Guideline?

No, not all.

You do not have to follow the Guideline if your situation in one of the following:

1. The rental was not occupied for any purpose before June 17th, 1998

This means your rental property was built after June 17th, 1998 or you have built a new unit in your property that was never occupied before June 17th, 1998.

2. The rental unit was never previously rented since July 29th, 1975

This means only the owner has lived in the property since the date of July 29th, 1975.

3. No part of the building was occupied for residential purposes before Nov. 1st  1991

This means the property was converted from commercial to residential or was not built or occupied until after November 1st, 1991.

Ontario Landlords and the 2014 Rent Increase Guideline

 For more information see the Landlord and Tenant Board Website

To discuss this and other issues go to the Ontario Landlord Forum