Posts Tagged ‘Ontario landlord advocacy’

Ontario Landlords Need To Be Able To Charge A Legal ‘Damage Deposit’ to Protect Our Rental Properties

Friday, March 9th, 2018

Ontario Landlords Association Damage Deposit Landlord Rights

Newcomer to Canada Believed in the ‘Canadian Dream” And Invested In Ontario Rental Properties, Now Demands Changes Because The Rules Are Not Fair For Small Landlords

I’m a newcomer to Ontario originally from India. Go ahead and call me an immigrant and that’s fine. My wife and I are were successful professionals in our home country and had a pretty good life-style.

We also had a dream.

And that dream was all about freedom. We viewed Canada as a place we wanted to move to. Not only was it a democracy it was a ‘free market’ where talented people could achieve their dreams. We thought that in Canada family connections and ‘who you knew’ weren’t the keys to success. And the rule of law was supreme no matter who you are.

We thought Canada was a meritocracy where if you study hard, work hard, and make a positive influence in Canadian society you will be rewarded for your hard efforts.

Canada was a place where we wanted to raise our children to give them every opportunity in the world for them to succeed. It didn’t matter that mom and daddy were not leaders or part of the elite of this Canadian society. What mattered was the right attitude and hard work to achieve your dreams.

We Put Our Hopes And Dreams Into Ontario

We knew about Toronto because we had some friends who moved here years ago. Fifteen or so years the we also heard about the Toronto Raptors who are a very good team now and also fifteen years ago. In our country the NBA player ‘Vince Carter’ was a star because of his amazing dunks. Toronto was the place we wanted to move to as it was so exciting and open.

Freedom Means Political and Economic Freedom

In Canada I found a job and we also invested in a rental property as an investment for my family and our future financial success. We also rented out our basement to help us cover the expensive mortgage and allow us to be homeowners.

Shocked At The Ontario Rules For Landlords and Tenants

Many new Ontario landlords like us were unaware of the rules we must follow when owning a rental property here and renting to Ontario tenants. They often think the rules are fair and being a landlord in Ontario is simple and renting out a property should be easy and profitable.

Being An Ontario Landlord is Overly Complicated and the Rules Are Actually Insane

Many new landlords are unaware of the landlord/tenants regulations in Ontario and are shocked to learn how these rules interfere with the normal process of simply renting out your property to someone.

We spend our energy and financial resources on creating safe and attractive spaces for people to rent out at affordable prices. Isn’t this a good thing?

The New Rules Just Make Things Harder For Good Landlords Who Want To Own Amazing Rental Properties

Many landlords were expecting some help to run successful rental businesses…and not allow bad tenants to bankrupt us.

Just look at the news! So many landlords are being ripped off by tenants who can easily manipulate the system to even stay our properties for months not paying rent.

Ontario Landlords Need To Be Able To Charge Legal Damage Deposits To Protect Our Investments

When you rent from a small landlord you are renting from a person or family that has invested a lot of money.  This includes payments to Realtors, lawyers, government. And we also pay contractors, plumbers, painters to make sure the property is attractive and we can find renters.

We can’t accept what this Windsor Landlord went through. The tenant moved out and left hundreds of drug material behind for the landlord to clean. Is it even safe for us to touch these drug materials? Or will we have to pay thousands of dollars to hire a professional to clean it all?

ontario landlords association damage deposit syringes

More than 200 of these syringes were found scattered across a one-bedroom apartment, leaving the homeowner to pay to clean up the mess

If someone leaves a hotel room like this they could be criminally charged! But we had something similar happen to us not once, on twice, but three times already!

If we could charge a damage deposit would this tenant not work hard to at least clean the drug equipment?

Why Is “Landlord Charges a Damage Deposit” So Complicated In Ontario (The Rest of The World Does This)

Ontario landlords security deposit damage deposit

A Damage or Security Deposit Will Help Protect Small Landlords. It will lead to even good tenants to be careful.

Many of us who came to Ontario with a dream of working hard for success are very angry at the rules for small landlords here! Alberta landlords and BC landlords can charge a deposit.

Why have you set up such a crazy system in Ontario? 

The media never reports how angry many of us who came to Ontario are.  We were not told of the crazy rules and anti-business attitude here. We are ANGRY! 

Only the Ontario Landlords Association made us aware of what we have gotten in to. Before no one else told the truth!

The Ontario Tenant Activists Just Don’t Make Sense

Who are these people?

Do they actually have jobs or are they paid by the government to fight hard-working landlords who have invested our money to become small landlords here? Let’s look at at at their main arguments and refute them for the drivel they are!

1. Tenant Activists Say A Damage Deposit of Even $1000 Will Not Be Enough To Protect Landlords

Ottawa landlords bad tenants 2018 4

Will tenants leave the fridge like this if the landlord has some sort of damage/security deposit? No way!

The Toronto tenant activists don’t get it. Smart landlords screen carefully and we don’t rent to tenants who will cause ten thousand dollars of damages. 

But because we can’t charge damage deposits many tenants leave the rental unit with garbage and lots of repairs.  Look at the above picture of what an Ottawa landlord faced.

It’s common for tenants to not clean up when they move. If the landlord has a damage deposit of course the tenants will clean up their mess. 

Even if we could charge $1000 many tenants will work hard to leave the unit in good condition to get the money back. How many hours will the tenant have to work to pay $1000? 

Of course they will clean the property to get this money back!

2. Tenant Activists Say Landlords Won’t Pay Back Any Damage Deposits

It’s So Simple: Tenants Who Don’t Get the Deposit Back Go To the LTB (It’s not rocket science!)

We keep reading at the Ontario Landlords Association forum from tenants saying landlords who get a deposit never pay it back. This is foolish and just manipulation.

It would be easy for tenants who didn’t do anything wrong to go to the Landlord and Tenant Board, make their case, and if true, get their money back. The “tenant activists” are deceiving people and are afraid to come up and realize there is a simple solution to this issue.”

Let’s look at what happens for BC landlords who can charge both a damage deposit and a pet deposit.

According to the BC Residential Tenancies Branch when the tenancy ends and after the tenant gives the landlord a forwarding address in writing the residential landlord must return all of the deposit unless the tenant agrees in writing to allow the landlord to keep the deposit or even some of it. If they have a disagreement it goes to an arbitrator who will decide.

See, tenants won’t get ripped off by bad landlords. This is so easy to do to be fair to everyone.

Let’s Have Different Rules For Small Landlords and Huge Corporate Landlords

Some tenant activists say charging a deposit will be a “windfall” for big corporate landlords.  Okay, let’s make some different rules for large corporate landlords with big buildings and us small landlords with a condo, renting our basement or a duplex. 

Sorry but unlike the big corporate landlords I cannot afford a lawyer and cannot afford to keep spending money to fix things and clean up from sloppy tenants who treat my rental units like a rented mule!

Let’s Improve the Ontario Rental Industry By Letting Ontario Landlords Charge a Damage/Security Deposit

It is absolutely insane that small Ontario landlords cannot demand even a small damage deposit to tenants. This leads tenants to not care about the rental and landlords have to pray and hope the tenants don’t wreck the property.

With the vacancy rate so low in Toronto and all over Ontario we need to encourage more good people to invest in rental properties and give more choices for tenants.

I have experienced tenants leaving a mess behind that me, my wife and even my children have had to clean up to try to re-rent. 

My family regrets being landlords in Ontario and demands changes be made!

I Don’t Want To Keep One Cent Of A Tenant Damage Deposit

If Ontario landlords can charge a damage deposit I will be very happy to pay them back every cent when they move out. I don’t want to keep any of it.

And if I don’t keep any of it this means they have treated me and my family and our rental investment property with respect. They left it like when them moved in. They made sure the oven and fridge are clean like it was when they moved in. They made sure to take out the trash and get rid of tires, batteries, and old toys and bikes. 

I will be the happiest landlord to return the tenant their deposit in full for cleaning the property and not leaving the disaster to me and my family!

Thank you to the Ontario Landlords Association for allowing me to get my voice heard on this issue.

 

As part of our “Let’s Improve the Ontario Rental Industry” we have invited landlords and tenants to share their opinions on how we can make these improvements. These opinions are from individual contributors and are not the opinions of the Ontario Landlords Association. We believe by fostering communication between landlords and tenants we can improve the Ontario rental industry.

Landlords in Ontario – The Rent Increase Guideline For 2018 is 1.8%

Saturday, July 1st, 2017

Ontario Landlords Association Membership Rent Increase Guideline for 2018

Our Province Wide Landlord Community Believes the Rent Increase is Too Low and We Need A Better Way to Calculate the Rent Increase Guideline To Help Small Landlords Cover Costs

Every year the Ministry of Housing publishes the Rent Increase Guideline.

Ontario has ‘rent control’ and this guideline informs residential landlords how much they can raise the rent in a given year.

The Ministry comes up with this annual guideline by looking at the Consumer Price Index. This index shows the level of inflation based on prices of such things as groceries and the cost of buying clothes.

How Much Can Ontario Landlords Raise the Rent in 2018?

Based on the Consumer Price Index the Ministry of Housing announced Ontario landlords can raise the rent by a maximum of 1.8% in 2018.

This maximum cap applies if you are going to raise the rent from January 1, 2018 to December 31, 2018.

How Does The Compare To Previous Years?

Ontario landlords can raise the rent up to 1.5% in 2017.

What If You Need To Raise The Rent At a Higher Rate To Cover Costs?

To do this you will have to go through the Landlord and Tenant Board process.

Many OLA members in the Ontario Landlords Association forum have shared their experiences regarding this process.

While some have succeeded, the consensus is that it is a complicated process and policies don’t have a true understanding of the real life financial challenges small residential landlords face.

What If You Face Higher Utility Costs?

Furthermore, with new rules for Ontario landlords coming this year you cannot apply to raise rents beyond the guideline for skyrocketing utility costs. This is one of the reasons more and more small landlords are not renting out inclusive of utilities.

Aren’t Newer Properties Exempt from Rent Control?

A lot of recent rental stock in Ontario has been created by small landlords investing in newer property such as condos. A common question these days in the Ontario Landlords Association forums is about rent control for new rental properties.

For example an Ottawa landlord wrote: “My rental property was built after 1991. Does this mean I don’t have to follow the government rent increase guideline or not?”

In years past, you were exempted but not anymore.

Previously rent control only covered rental properties that were built prior to November, 1991.  This exemption was a strategic decision made to encourage the creation of new rental buildings in the Ontario.

Things have changed this year with the Rental Fairness Act 2017. These new rules mean rent control has been extended to cover rental properties that were built prior to November, 1991.

The Guideline of 1.8% Is Too Low For Me To Keep Up With My Rising Costs

This is a common statement by OLA members.

The Ontario Landlords Association has lobbied for change in how the annual rent increase guideline is calculated. The guideline needs to put far greater weight on the price increases of good and services that impact small landlords.

After all, it costs money for good landlords to run safe, well-maintained rental properties.

Some OLA members suggest a good solution would be for the Ontario guideline to copy what BC landlords have. In British Columbia the guideline is the rate of inflation based on the consumer price index plus 2% (to account for the extra types of costs landlords have).

Landlords Can Raise The Rent 1.8% in 2018

With the importance of owning safe, well-maintained properties and costs rising it’s important for landlords to raise rents annually. We are faced with a very low cap on how much we can raise rents which creates even greater challenges for landlords.

It’s time for the the rent increase guideline to be changed to meet the real needs of residential landlords and to help us improve the quality of the rental stock in Ontario.

It’s time to stop bashing landlords and start working with us to help improve the entire rental industry. This will benefit both good landlords and good tenants.

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.