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Nov 16
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Home rental ideas, loans, mortgages and real estate valuations for sale.

Doug Ford Scales Back Rent Control In Ontario – How Will It Impact The Market?

By Advice for Landlords, Video Blog

On November 15th, 2018 Doug Ford and the Conservative Government announced plans to scale back rent control in Ontario. The plan will reverse the April 2017 “Rental Fairness Act” originally put in place by Ontario’s then-Liberal government which expanded rent control to all private rental units in Ontario.

Who Will Be Impacted By The Changes to Rent Control?

The new policy will not impact all units in Ontario but rather all newly built units occupied AFTER November 15th, 2018. That means that if you’re planning on renting a unit that was built and occupied PRIOR to November 15th, 2018 – these changes will not impact you at all, and rent control will continue to be in place.  Units that are subject to rent control can only increase the monthly rental rate by a predetermined amount set by the government each year. For units without rent control – there is no cap for how much you can increase per year!

How Will The Loosening of Rent Control Impact The Market?

Our first reaction to the change was that this would be HUGE news for the pre-construction market. On the surface, a condo with no rent control seems very appealing to condo investors.  But digging (in the video below) a bit deeper, reveals that possibility of the opposite being true…  

 

With these new changes, Tenants will have a choice between living in a rent-controlled unit with relatively minor yearly increases, versus non-controlled rents that can spike to any amount each year.  Our assumption is that a tenant will be willing to pay more at the start of the lease in exchange for the stability and peace of mind that a rent-controlled unit will offer them. 

In 2017, Toronto saw a big jump in rental prices once the “Rental Fairness Act” came into effect. Since landlords knew they would be limited in how much they could increase the yearly rent, many came to market on the higher end in an effort to hedge against lost rental rates for units with long term tenants.  We anticipate a similar impact as there will be an even higher demand for units with rent control.

How Will Changes Impact Landlords and Condo Investors

If you are a landlord of a unit that is built and occupied AFTER November 15th, 2018, you have the option of increasing your rent by any amount, once, per 12 month period.

For landlords of units built and occupied BEFORE November 15th, 2018 the amount you’re allowed to increase per year shall continue to be capped by the yearly amount decided by the government.

When trying to decide if your unit is subject to rent control, it’s important to remember that the date your unit was built and occupied determine if it’s impacted by the changes, and that it has nothing to do with when a lease was signed.  

Lastly, remember that governments change… and just as the last one introduced rent control to all units, the same can happen in the next election.  Whether you invest in a rent-controlled condo or one with no control, make sure you examine the pros and cons of each carefully!

Nov 15
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Interior design of living room

Does A Landlord Have To Pay A Tenant To Move Back Into Their Own Home?

By Advice for Landlords, Video Blog

If you are a landlord in Ontario wanting to move back into your rental property, then this post is for you!

In the past, all you had to do was simply notify the tenant of your intention to move back in, and the tenancy would effectively come to an. (with proper notice of course)

Unfortunately, many (shady) landlords weren’t using this method in the most honest of ways.  Instead of moving back-in, some landlords would simply relist at a higher price. Naturally, this displaced many tenants resulting in unnecessary moves and extra costs.  The Ontario government quickly got wind of this and moved swiftly to shut the loophole down.

As of September 1st, 2017, the rules surrounding how and who can move back in have changed significantly. As per the Landlord Tenant Board: A landlord may apply to terminate a tenancy on the basis the rental unit is needed for use by the landlord, the landlord’s family member, or a person who provides or will provide care services to the landlord or landlord’s family. Notice how they didn’t say cousins or even siblings? It must only be an immediate family member, and the move must be in “good faith”.

You also to compensate the tenant for displacing them. Yes, you read that right – landlords now have to: compensate the tenant in an amount equal to one month’s rent or offer another rental unit acceptable to the tenant.

Examples of Evicting a Tenant as Bad Faith

Some examples the board provides of termination in bad faith include:

  1. advertises the rental unit for rent;
  2. enters into a tenancy agreement in respect of the rental unit with someone other than the former tenant;
  3. advertises the rental unit, or the building that contains the rental unit, for sale;
  4. demolishes the rental unit or the building containing the rental unit; or
  5. takes any step to convert the rental unit, or the building containing the rental unit, to use for a purpose other than residential premises.

These provisions only apply during the period that begins on the date the landlord gave the tenant the notice and ends one year after the former tenant moves out of the unit.

Fines or Remedies

If a landlord is caught breaking the rules, the LTB may order the landlord to pay:

  1. a specified sum to the tenant for all or any portion of any increased rent that the former tenant has incurred or will incur for a one-year period after vacating the rental unit;
  2. reasonable out-of-pocket moving, storage and other like expenses that the former tenant has incurred or will incur;
  3. an order for abatement of rent;
  4. an administrative fine not exceeding the greater of $25,000 and the monetary jurisdiction of the Small Claims Court; or,
  5. any other order that the LTB considers appropriate.

Steps a Landlord Must Take to Move Back Into Their Rental Property

If you and your family truly do need to move back into a rental property – make sure you follow all the correct procedures:

  1. Give proper notice.
  2. Compensate the tenant in an amount equal to one month’s rent or offer another rental unit acceptable to the tenant.
  3. Ensure only you or an allowable family member is moving back in and that the move is being done “in good faith”

With a max fine of up to $25,000, going about it in the wrong way is no slap on the wrist! Full details can be viewed on the Landlord Tenant Board website… and of course, none of this is to be taken as legal advice – just my experience in the wild world of Toronto Real Estate.

Happy Real Estating!

Oct 22
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Woman care of her pet

Can a Landlord Refuse to Rent to a Person who has a Pet in Toronto?

By Advice for Landlords, Video Blog

Can a Landlord Refuse to Rent to a Person who has a Pet?

Yes! In Ontario, a landlord can refuse to rent to their property a person who has a pet… however, once a lease has started, a Landlord cannot simply evict a tenant for having a pet.

Confused yet? Let me explain:

According to the Landlord and Tenant Board: “A landlord can refuse to rent to a person who has a pet.” They also mention that “A service animal is not considered a pet”  and therefore if a tenant with a service animal makes an application to rent, that isn’t grounds for a refusal.

 

Now here’s where things get tricky…

The board also says: “A tenancy agreement cannot forbid a tenant from having a pet. And once there is a tenancy agreement, a landlord cannot evict the tenant simply for having a pet. This is true even if they agreed that the tenant would not have a pet.”

What this means is that once a lease starts, a landlord cannot evict or prevent a tenant from getting a pet. It also means that any wording in an agreement to lease which prohibits a tenant from having a pet is unenforceable. Even if the tenant hid a pet from you in the application process (ie. lied about having any pets), you still cannot evict them for having one.

HOWEVER… there are certain situations that The Board lists for when a landlord can start the eviction process and they are:

  • the pet is making too much noise, damaging the unit or causing other tenants to have allergic reactions;
  • the breed or species is inherently dangerous (e.g. a tenant’s pit bull could be considered “inherently dangerous” even if it hasn’t bitten anyone);
  • the rules of the condominium corporation does not allow pets like the one tenant has.

The important distinction to make here is that a Landlord cannot evict the tenant just for having a pet, but rather only if a situation similar to the examples above occurs. 

Can the Landlord Charge the Tenant a Damage Deposit?

The short answer is NO, and this extends to pet deposits as well.  The Landlord and Tenant Board says the following:

A landlord cannot collect a damage deposit to pay for damage done to the unit. Also, a landlord cannot use the last month’s rent deposit to cover damages in the unit. The rent deposit can only be used for last month’s rent before the tenancy ends.

If the landlord finds that a tenant has damaged the unit or caused damage to the building, the landlord can give the tenant a notice of termination and/or ask them to pay for the damages. If the tenant doesn’t pay, the landlord can apply to have the LTB determine if there are damages and what should be done about them.

Tenants with Pets Summary

  • Before a lease starts, a landlord can deny a tenants application simply for having a pet (Service animals excluded since they are not considered pets).
  • A lease cannot contain any language that prevents a tenant from having or getting a pet.
  • Once a lease is signed, a landlord cannot evict a tenant just for having a pet. 
  • A landlord cannot charge a tenant with a pet any sort of additional deposit for having a pet.
Feb 23
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What Are they Building at 529-543 Marlee Ave? 819 Glencairn Ave.

By New Condo Developments
More changes are coming to Marlee Ave! An application has been submitted by KFA Architects and Planners on behalf of 809726 Ontario Ltd to build a 9 storey, residential condo on the corner of Marlee and Glencairn.

Where Will the Condo be Built?

The lot is located on the North East corner of Marlee and Glencairn. The application was submitted to re-develop the addresses known as 529, 537, 539, 541 and 543 Marlee Avenue as well as 811 and 813 Glencairn Ave. For application purposes, the building is referred to 819 Glencarin Ave – but that name may change as the approval process progresses.
 

What is Currently on Site?

The lot is occupied by a three strorey mixed use building with commercial uses at grade and walk-up apartments above. 
Sidenote: we know this corner very well, as we’ve had many dinners at Li Cheng’s!

How Many Units Will be Built?

The current application calls for 84 residential units with retail at grade. The retail space can be divided into a variety of options, from 1 large unit to 6 smaller ones.

What Type of Layouts Will 819 Glencarin Ave Have?

The current proposal is calling for:
28 one bedroom units
24 one bedroom and den units
28 two bedroom units
2 two bedroom and den units
2 three bedroom units

What Will The Project Look Like?

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What Amenities Will the Building Have?

Plans are calling for a gym and party room along with a shared outdoor balcony.

Will the Condo have Parking?

Three levels of underground parking will be included in the design, along with 79 parking space with two spaces for commercial use and eight for visitors. They will also have bicycle parking off of the main level.

When Will 819 Glencairn Ave Be Built?

Plans were submitted to the city in September 2017 and the first community consultation meeting was in January 2018.  There was a lot of community push back and a many changes suggested to the overall project.  As more info is known, we’ll update the blog!

Our Thoughts on the Project

Marlee Ave is ripe for development – it has the vibe, feel and potential to become “The Ossington” of midtown! This application is the second of the year for the strip (first being a series of stacked townhomes at Wenderly Ave), and atleast to us, a welcomed addition to the area.  

In January 2018, we attended the community consultation and unfortunately many in the room didn’t share the same enthusiasm for the project as we did!  There was a small handful of the usuals who flat out wanted no changes whatsoever.  BUT there was also a larger group that were open to redevelopment, so long the height was brought down.  

Personally, we think 9 storeys is perfect for the area! A short walk south on Marlee is where you’ll find several condos, built in the 70’s, with heights of over 20 storeys tall. We also like the use of red brick for the exterior, helps set it apart from yet another boring glass building.  

From the sounds of it, it looks like the architects will be going back to the drawing board to makes changes to the proposal. Be sure to check back as we’ll be providing updates as more is known!

Feb 07
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Modern house with garden swimming pool and wooden deck

There Needs To Be More Transparency with Real Estate Bidding Wars

By Advice For Buyers, Advice For Sellers, Video Blog

We need to change the bidding war process in Toronto! If you’ve tried to buy a home in recent years, you know how backwards the current process is…If you haven’t, let me explain.

The Current System

A seller will list their property below market values to create a frenzy amongst buyers.  After roughly 7 days of market exposure, they’ll review and all offers that come to the table.  The problem is that each buyer is going in “blind” not knowing anything about the other offers.

Current rules, as set by the Real Estate and Business Broker Act, say we can not disclose the motivation, offer, or price of a competing offer. Thus creating a blind bidding system full of suspicion and mistrust.

The winning buyer always feels like they paid too much, the losing buyers feel like they could have paid a bit more and the sellers could regret the highest bid if the winning buyer can’t secure the financing. Plus it artificially increases values as going in blind can create an over inflated offer.

How We Can Fix It

Simple – get rid of the blind bid system and open up the process. Let each party know the Price, Deposit and Closing date of the other offers. This levels the playing field. There still will only be one winner and several losers, but atlas both parties would fairly know what they were up against, in a more transparent system and enjoyable process.

Good News

OREA is seeking feedback on whether it should push the provincial government into modernizing the real estate industry to make it more transparent. Australia is already doing this – and even opening up their MLS to sold prices (more on that in another video). In Melbourne, they littering gather infront of the house on a offer day and each party bids infront of each other. This is the most transparent way to know what you’re up against.