Rents have soared in much of Canada, including many parts of Ontario. If you lived in a building built before 1991, you were protected by provincial guidelines that limited the amount that rents could be increased each year. If not, you were subject to the whims of landlords and that has meant some major shock: rents sometimes go up hundreds of dollars at a time.
The Ontario government recently responded with the Rent Fairness Act 2017, which extends rent protections to all buildings, no matter what year they were constructed. This no doubt a relief to those in newer buildings, but will not help tenants whose rents went up prior to the act coming into affect.
So, who are the winners and losers here? Tenants would certainly seem to be in the former category. However, they could also end up being losers in the long run.
Some industry representatives have stated that the new rules will dis-incentivize builders from constructing rental housing. The thought here is that it will take much longer for them to recoup and turn a profit through these controlled rents vs the one-time sale of a condominium.
What are your thoughts on this? I’m of two minds. If you cannot afford a house or a condo, it seems like you are throwing money away by renting an apartment. However, if renting is your only option, apartments are a better choice because condo renters have almost no rights.
Also, if you are retirement age and downsizing, renting is not such a bad option, given the controls that the government has put in place.
As an apartment renter in a fairly expensive Southern Ontario city, I welcome these additional controls, even though I already live in a building that is exempt. Everyone needs a little more peace of mind these days and knowing that your rent will remain manageable helps to deliver that.