The Tenancy Act favours tenants, not landlords

If you are an investor contemplating multi-family or student housing as an investment, you need to know about recent changes to legislation. I came across this small blurb via email and the author has kindly allowed me to reproduce it here:

"An Ontario residential landlord can charge anything they want to a new tenant initially. How much they can raise the monthly rent thereafter depends on the age of the property. Ontario residential rent control law states that for properties built prior to November 1, 1991, a landlord can’t raise the rent any more than the percentage guideline in the Ontario Residential Tenancies Act (RTA). This rate changes yearly but is usually around 2%. A landlord can apply for an exception to this guideline, but only if certain types of property improvements are made. Exceptions are seldom granted.

However, properties built after November 1, 1991 are exempt from rent control. Landlords can raise rents on these newer properties as much they want with their current tenants. Therefore, considering the strong Toronto real estate market, investment properties built after 1991 can be a considerably better investment than older properties. The Residential Tenancies Act (RTA) heavily favors tenants over landlords."

All of which could have major impact upon Buyers persuing properties in the Hamilton area where a large number of student homes are available, for example.

If you want to know more about the RTA, the author of the above blurb, Katherine Paliwoda of Katherine Paliwoda & Associates, RECO Approved Educator, offers a 6 credit course entitled "“What Every Realtor Should Know About A Landlord's Rights And Obligations”, which of course, is aimed at Realtors working with investors. You could take the course yourself, or better yet, suggest your agent take it in order to provide you with better service.

https://katherinepaliwoda.com/Courses.html.

Robert J. Morrow, editor: www.HamiltonHomeReview.com & www.NewNesters.ca, websites offering MLS listings, Private Sale listings, Reno tips, and more!