Ahead of the Ontario general elections set for June 2018, Premier Wynne has brought about some changes she hopes will win-her-more-votes/save the housing market. One of those changes of course is the "closing" of the loophole, that allowed rents to be increased outside of the Ontario Rent Increase Guidelines for buildings constructed after 1991. Yet its these very same rent controls along with many others (ie the huge imbalance in favour of tenants at the Landlord and Tenant Board... municipalities charging absurd property taxes to owners of multi family residential properties... and putting the charges for delinquent tenant's utility charges back on the landlord), that are making it very difficult to for investors to choose to invest in real estate here.
Unless municipalities start adapting and making it easier for home owners to offer secondary suites, or reducing multi family property taxes to more reasonable levels, where are the affordable housing units going to come from? Those renting will stay in place due to the shortage, the landlord may not be ale to afford renovations, improvements, and who ends up suffering? The tenants do. The same as almost always, when rent control is introduced. Buildings start to fall into disrepair, eventually it ends up at the tribunal, the frustrated landlord sells, and the tenant may have to move out, if they're able to find a place.
When there is a shortage of supply, we should focus on increasing the supply to alleviate the problem for escalating rents. This is done by working with municipalities and builders developers on bringing more units to market, not by adding barriers.
Buying and Selling Residential, Condominium and Investment real estate in the Waterloo Region since 2008. Oh, and also Ottawa! :-D