'Federation of rental-housing providers' prepared to offer a suggestion to Queen's Park
Has the pendulum shifted too far to now favour the tenants?
By
Mark Schadenberg
One
item I reported on back in April was new legislation pertaining to rental
properties in Ontario, and especially to newer (Built since 1991) large multi-family buildings.
I would say, the
provincial government had made the mistake of not letting the calendar keep up
somewhat with the times, so in April they decided to drop 1991 (or newer
construction) as the completion / initial occupancy year of buildings which
would not be under the umbrella of strict rent controls. In other words,
previous to the spring of 2017 newer modern apartment buildings could increase
rents by a higher proportion, especially to new tenants moving in, compared to
a complex built before 1991.
Sounds
complex, but the new law should have simply advanced the year to perhaps 2005, or better yet changed the year of effect annually to create a 15-year gap that way a developer could finance their new mega-residential construction projects over 15 years.
The
rate of inflation or no more than 2.5% is the new guideline for rent increases for all buildings.
With
the legislation changing the rules, it has become more difficult for developers
to realize a comfortable ROI (return on investment) to even begin building brand new bricks and mortar.
This is certainly a cause-and-effect in the GTA where the price of accumulating
the land parcel to build is much higher than Woodstock or Sudbury or East Gwillimbury. The new percentages
have made apartment projects more difficult to envision long-term profitability
in all corners of Ontario.
The Kathleen Wynne administration would likely say that rent control policies are important
due to the number of people with jobs who are statistically below the middle
class.
Read
the link below from the Globe And Mail as it describes a proposal -- a new idea –
as penned by the Federation of
Rental-Housing Providers of Ontario.
You
may recall that the new rent increase rules were part of a 16-point plan
introduced by Ontario finance minister Charles Sousa just 2 months ago. The Bill also included the new rules creating a tax for foreign ownership purchases of real estate in Ontario.
The
provincial Liberals created the new law because some newer buildings were
increasing rental rates by 50% or more for new tenants in buildings that were
opened in 1991 or more recently. I would agree that previously permitted rent increases were obviously too much, but has the pendulum been able to swing too
far in the other direction?
Queen's Park
Chieftain Street in Woodstock
http://www.torontosun.com/2017/06/04/single-mom-says-she-was-bullied-out-of-apartment-by-tchc-lifers
April
2017 Blog (With Additional Links)
* * * * * *
Mark Schadenberg, Sales
Representative
Senior Real Estate Specialist
(SRES designation)
Royal LePage Triland Realty
Independently Owned & Operated, Brokerage
757 Dundas St, Woodstock
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland
Discussion . . . Direction . . . Determination . . .
Destination
No comments:
Post a Comment