Ontario guidelines for rent increases please nobody
As housing prices continue to rise, more and more potential buyers are opting to rent, fueling a bit of a rental shortage in some urban centres. And then there's all those people who couldn't afford to buy a house no matter what.
One factor driving people to rent is an uncertain job market. Despite low mortgage rates, people are reluctant to get tied down in a mortgage if they don't know where they'll be working next.
To ease the squeeze on tenants facing maximum rent hikes of 3.1 per cent next year, residential rent increases would be capped at 2.5 per cent starting in 2013 under legislation proposed this week by the Ontario government.
Click here for a historical view of previous rent increase guidelines. The average from 2004 to 2011 was 1.89 per cent whereas it was 3.17 per cent from 1993 to 2003.
Not surprisingly, landlords are already starting to howl: “The government is unilaterally imposing a cap without any discussion with an entire industry and is initiating a policy that will be particularly devastating for small landlords," says Vince Brescia, president of the Federation of Rental-housing Providers of Ontario.
Landlords are concerned that such price caps could replicate the devastating housing market conditions seen in Ontario 25 years ago, when fixed rent controls were out of step with rising housing costs.
Tenant groups, of course, don't see it that way at all and are slamming the government for not doing enough to help renters.
“In the real world, tenants are losing their jobs, facing demands for wage freezes and rollbacks or living with a 1 percent increase in their social assistance cheques, says Kenn Hale, spkesman for the Advocacy Centre for Tenants Ontario.
Nor is there adequate protection in place for those who move around: "In the real world, when tenants move there is no limit on the rent increases that a landlord can charge an incoming tenant in any private-market building,” he adds.
1.3 million households in Ontario rent their homes, accounting for 29 per cent of all households in the province. Of those, one in five spends more than 50 per cent of their income on rent.
Are the proposed rent caps reasonable? Or do such caps keep properties off the market and deter new construction?
By Gordon Powers, MSN Money
Posted by: Flower | Dec 9, 2021 7:59:36 PM
I move every year because the apartments I have rented were miserable to in. I can write a book about my experiences but you probably wont believe me. They seemed decent at first and most important affordable. I have no car, so location is everything. I make min. wage and have debts to pay and sometimes its hard to pay them in time. Renting is my only option.
I live in Nova Scotia were there is no limit to how much a landlord can charge. They give you 3 months notice of an increase if your in a monthly lease. A majority of places want references so if you had a shitty landlord, your out of luck. At least in Ont. there is that percentage lock. That makes a huge difference to tenants.
I do see both sides of the story however if your in the business of renting properties you should know what your getting your self into. Renters have no choice.
Posted by: coletta | Dec 10, 2021 3:23:49 PM
I have a small building in a great area. I welcomed the current rent increase everything is going up not only for my tenants. Should only the tenants should be considered in decidning our much is the increases should be? I think not. Rents are determined by market conditions no more not less and all other cost me as a landlord are determined by outside force and sometime careless tenant who abuse rules.
I like to think i am an honest guy just trying to do what it is best for the hte future, a lot of tenants though think landlords are vampires prying on the necessity of others in reality we are just like you but we are charitable organizations who provide for the needy. That is not my mandate it is the mandate of governments at any levels.
Like there are bad tenants (believe some should not be ever allowed to rent) there are also bad landlords whose building should be expropriated or demolished. Why then the need of the tenants are put always ahed of the ones of a landlord?
Posted by: Maybe | Dec 10, 2021 3:29:07 PM
I've been a renter, a home owner and a landlord (and am currently a renter because property ownership is too much work and too much risk in this economy) in Ontario and think the Landlord Tenant Act over-protects the interests of renters. Yes, it is important that renters', particularly those with limited incomes, have fair, safe and clean living conditions. However, from the landlord perspective, one has several hundreds of thousands of dollars invested in a property, mortgage payments that have to be made regardless of whether or not one's tenants' rent cheque bounced, has liability to consider and repairs/renovations. The current limit on rent increases don't factor in increases in cost of living resulting from HST (ironic that the government that increased everyone's expenses are now making it difficult to offset the increased cost) and rising cost of gas. We have to be really careful not to make it so difficult for people to rent property to others that they either set the rate of rent for their properties at levels that are out of reach for too many or discourage people from renting out their property to others. Yes, there is a need to protect renters from slumlords but there is also a need to recognize that property owners have a lot at stake too and that there are a lot of destructive "slum-tenants" too who damage one's investment.
Posted by: Mr. X | Dec 10, 2021 3:55:14 PM
I have lived in Ontario and I am currently being taken to court by a gredy landlord who believes that he gets a new house when hte old tenants move...He expected me to follow everything by the book when he never did, before we moved we had a foold and it forsed us to make our oldest son sleep on the couch...In my opinion the government should make lanlords take a course in the landlord and tenant act before they can rent to anyone, the amount of money renters pay in ontario is absolutely rediculous.
Posted by: contact | Dec 10, 2021 4:03:31 PM
this is bull the government should have NO say if a landlord wanted to raise the rent 10% or 100% thats there right they OWN the building
in the real world rent is determined by location and market
dont cry about loseing jobs or raise of only 1%
is the government next going to tell me how much my used car can sell for?
or how much stores can sell thier products??
been tried it failed commies lost
Posted by: missy x | Dec 10, 2021 5:02:12 PM
Its a delicate balance between the ownership rights and the government controlling the price-gouging, which runs rapant in the rental industry. My personal experience is that most of the places for rent are over-priced shitholes anyways. And when I came to this conclusion I was 21, with very low standards.
Don't they have something where if you reno/upgrade your units you get a tax break? If they don't they should, and better then that, they should give you a cap increase to encourage landlords to update these crap apartments they expect people to pay good money for. I gave up on the entire toronto renting scene and moved to BC 3 months after apartment hunting there. Thats how bad it was (5 yrs ago) People can say BC's an expensive city to live in, and yes cost of living is a little higher, but I live in a 2 yr old, 2 bed/2 bath condo, with a pool, only 25 mins from the dt Vancity core, for almost the same price as one of the custy dark apartments I looked at in East York., and what you save on rent will offset your other expenses. and I'm not the only one who's done this.
My point is, something needs to be done anyways, because the way it is now isn't working, so only time will tell if this is a step in the right direction..or they'll have to implement a 3rd option.. but regardless, at least its a step period and I see that as a positive thing.
Posted by: Francisco | Dec 10, 2021 5:08:14 PM
I am a renter in vancouver, where buying a tear down house on the west side starts at 1.5 million and a small condo dwntwn where if u wanna put your queen size bed in the bedroom you wont be able to close the door or closet cost around 400k I choose to rent an older spacious apt right dt for $900 a month and I am a landlord in Toronto where I was able to buy a house similar to vancouvers 2 million house ofr $330,000 6 years ago.. I always have belived that renting is money thrown away.and encourage anyone with even the smallest downpayment to ENTER the buying ladder, even with the humblest of condos or house to build your equity. I am happy paying rent in vancouver while someone pays off my house in Toronto. As a renter I try and find a well managed house or building, and spend days and days walking the streets , seeing different places and landlords so when you find a bargain you know it and snagg it.As a landlord all I ask is that the rent covers my costs, mortgage, utilities, taxes, insurance AND leave some money left over to cover the repairs, new furnace windows plumbing etc. . There are a lot of expenses not just the mortgage,but I believe in being moderate and fair to condition of housing, location, and market share. yes there are greedy greedy landlords Ive lived in those and there are people like myself who will just what my costs are and will raise the rent as my costs rent. We the private landlords are not running charities and our costs should be met, like any other business or transaction you dont go in it to be losing money every month. I do belive that rent control is fair and there are provisions for landlords who do major work and expenses on their property to apply to raise the rent more than the allowable if there were major improvements made to the unit.
Posted by: Mr Landlord | Dec 10, 2021 5:45:41 PM
I've been a landlord for a number of years now. 3 and a half years ago i rented my semi and condo out to very good tenants.(luckily for me ) I have not increased their rent once in that time. Over that time the cost of everything has gone up, so i decided to do an increase of 3% effective Jan.1. Neither one of them have complained. I agree with a previous poster that the government should not be capping rent increases. I believe it is fair the way it is. Last years max increase was .7%. Why didn't we here about a maximum cap of 2.5% then?
Posted by: Mac | Dec 10, 2021 6:11:10 PM
In the past I have rented. I have also managed an apartment complex. Seeing both sides of the fence. You can get poor landlords and poor tenants and good landords and good tenants. You can be a good tenant and have a poor landlord and visa versa. The cost of housing and rents and most everything we purchase has gone nuts not only in this Country though most of the world. At one time you could raise a family and buy a home in Vancouver on an average wage. We have rid of the so called middleman and priced an average wage earner from a home. We have developed a monster in our society and don't no how to cope. Most everything has got out of hand. What our parents and theirs took a life time to build. We have destroyed in just in a matter of a few decades. If we keep going at this rate and maybe to late now though what a mess we have left the next generations SCARY.
Posted by: DougJ | Dec 10, 2021 7:04:39 PM
To many people expect the government to step in and provide them with everything they need in life...... food, housing, healthcare, childcare just to name a few. I have come to realize that " those who expect nothing need nothing" those who expect everything, need everything"
Posted by: mike Wilkinson | Dec 10, 2021 7:34:16 PM
i used to live in Ontario and now live in BC. Landlords complaining well at least they food on their plates! quite frankly most are overcharging, there is a need for more socially affordable housing for both parties the market makes a mess of everything, social housing for everyone on welfare but places free of smokers as an option as well, set socialk assistance rates equal for people paying rent and the homeless so that you are not punished for refusing to pay slumlords this would lower rent the fact is slumlords jack up rents to match minumum social assistance rates for closet size bug infested slums, i have always paid at least 2/3 of my income on rent evemn when working because anywhere with work charges ridiculous rent, the fact is the system favours landlords and always has, rent for a 1 bedroom apartment is about 60-90% of income from employment, there is the problem, in fairness the costs of buying a home are absurd as well but will continue to be until someone steps up and demands a stop to immigration which keeps wages down and increases costs, multiculturalism is failed and needs to be done away with.
Posted by: Stupid Canadians | Dec 10, 2021 7:51:32 PM
Dear Stupid Canadian:
The problem is that poor people (who should never EVER have been able to afford a house) have managed, through banking fraud and government CMHC insurance...bought houses without having any real money.
This is a MAJOR shift in our society.
If these people aren't responsible enough to control themselves with runaway debt...they are not going to make decent landlords.
This ignorance and manipulation have driven prices up beyond reason across this fair country.
Hence, rents have also skyrocketed--as debt blowback has increased.
People expect "other poor people" to pay off their debt.
But there aren't any left...or very few. More than 7 out of 10 people own, and are mortgaged to the hilt.
Canadians are so smug: "things are different here", or "those stupid Americans."
We are far less intelligent: this is why things keep chugging along somehow.
Americans figured out this scam years ago...and are unraveling from it.
People just don't get it here; and God help us when the illusion begins to unfold.
For more real estate truth...check out former MP Garth Turner's www.greaterfool.ca
Posted by: Jenny | Dec 10, 2021 8:19:28 PM
First off..thank GOD for the cap! All you people complain...but don't realize that the tenant is the one that suffers, because every year the rent goes up, landlords say, if you can't pay it leave so they move, and move and i have done this too. I'm good tenant, but the landlord does like if you home 1 day or they will say oh my water bill, oh my heat bill...but then you pay them 700 or 800 for 1 dirty room in a basement! I have lived in a place that had little red/brown carpet ants and they would destroy my food and end up on my bed! I told the landlord they provided me with a spray - it didn't work! They did nothing after that...but told me that my rent was increasing by 50 dollars which was 10% if not i and move out! This is the normal 70% of tenants face! Living in dirty shitty basement apts. and paying 900 dollars. and the tenant can't even eat - I have had to steal food once from a store because my rent comes first! If you are a landlord, the tenant is there to help you! NOT PAY YOUR FULL MORTAGE! MOST PLACES YOU RENT ARE OVER PRICED..REALLY SHOULD BE NO MORE THEN 1% INCREASE! SO YOU CAN HAVE PEOPLE NOT MOVE EVERY YEAR TO FIND SOMETHING CHEAPER! I HAVE MOVED 6 TIMES IN 8 YEARS! I CAN'T KEEP DOING THIS!
Posted by: Ed Muise | Dec 10, 2021 8:31:06 PM
Hi:I have had alot of experiance renting.I have lived in du plexes triplexs.Condos,etc.And its rarely a good experiance.Im now renting in a condo,the last 2 place were aweful also.I could also write a book on renting,not too brag or anything.But i dont have good luck,i also have a cat.And its harder when you have a pet too find a place.I believe i am a good tenant,pay my rent on time,dont make noise,and try too be nice.But sometimes even thats not enough.My last laandlord wanted me too pay for the paint and repairs,ha ha.And when i took them too court,they never showed up,saying they thought it was at 1:00,in the afternoon,when it was written 9:30 in the morning,on many pages.I am getting tired of renting from slumlords.I have never been kicked out of any place i have lived,or anything close too that,and yet i keep getting the shaft.Not too happy.I will add too this as soon as i have seen what my landlords going to do.Thankyou.
Posted by: contact | Dec 10, 2021 9:27:53 PM
you guys who support rent controls do you know what the results of this will be???
LESS rental units
I would not even consider building rental units if i cant rent them for what the market will bear
Ill build condos or house's where i can sell them for whatever i want
Posted by: worker | Dec 10, 2021 9:54:05 PM
Funny how the harder you work... the luckier you are! Time and time again i hear about people complaining about not catching breaks etc etc. Tennants complain about rising rents every year but they love to leave the window open in the winter for fresh air, run hot water for 10 minutes to warm up the shower, and leave all the lights on for when they return home. My shack of a house costs me over $2000 for mortgage, $100 for water and sewer, $250 hydro $350 gas and a bare minimun of $300 maintenance. not to mention all the usuall house work of lawn care driveway shovelling, gutter cleaning, blah blah blah its endless. Poor tennant cant afford $800 inclusive to sit on his a$$ all weekend playing video games while the sucker landlord breking his back 15 hour days.
if minimun wage doesnt pay enough - use your head and work smarter.
Posted by: dj | Dec 10, 2021 9:56:59 PM
I have been a landlord for many years. Many tenants are excellent, however there are a significant number who live like animals. When I have a tenant move in all my units are freshly decorated including new or cleaned carpets. It amazes me that a tenant can destroy a property in realtively short time. I read many of these posts and shake my head. Oh and don't forget that nearly every tenant who claims rent is too expensive, likely owns at least one dog and a big screen tv and always has money for smokes, alcohol and Tim Horton's
Posted by: MAP | Dec 10, 2021 11:03:54 PM
Read this post and I would like to add my 2 cents. It is frustrating to see these complaints from tenants., including myself. In Ontario the McGuinty government has done very little in creating decent paying jobs and affordable housing. The rents in my area rents have skyrocketed so high that even though I work two jobs and make fairly good money with both jobs combined, I can't afford paying the high rents. They would put me in the 60 to 70 percent of my income. What ever happened to the 30 percent of ones income, spent on rent? What is the government doing to stop some landlords making huge profits from tenants? How do landlords justify the gouging they do. There are many landlords who have rental proerties that are mortgage free so any rental money they get is sheer profit, especially if tenants pay the utilities. The cost of living has increased as well as the amount of people out of work. Once these people run out of unemployment, some will find minimum paying job, $10.25 in Ontario, some will go on welfare. How can these people afford the high rents and still live in a decent home?
I am working on getting some answers to these questions. I have sent a couple of e-mails to the Ministry responsible for housing. As of yet I have had no response. I am putting together a petition regarding high rent issues. Should this be successful it will be presented to government. I believe as a tax payer and voter I have a right to fight for my right for decent affordable rent. I have to ask myself out of all of these posts there was no mention of anyone writing, emailing, and phoning their MP. That is sad that not many people take advantage of their right to question government officials on their platform of rental issues. We vote these officials in, so demand that they listen to our complaints..
Posted by: THE DARK | Dec 10, 2021 11:25:09 PM
I read this all the comments and all i can say greed ingnorance and this opion about people who make crappy money have realy no say about caps on rent think of it this if it wern't for these people your buildings would empty and you would out luck.......
Posted by: cawalt | Dec 10, 2021 11:48:33 PM
i have been a renter for about 10 years now i agree some tenants are just pigs and typically the lanlord won't lose money on the people because they take them to court to get there money returned to them. And yes there are tenants that get behind on there rent and it is just unavoidble life does have it's twists and turns but most landlords don't seem to care unless they get there money.Most landlords seem to be from other countires as well not born in canada but have been given all this free tax payers money they go buy houses with and then over charge rent and refuse to follow the rules they should be. Tenants don't always have it easy and neither do landlords but in the end of it if a tenant moves does the landlord really lose any money? the rent cap is a good idea and no lanlord should be able to raise the rent just because they feel like it because that just seems like greed to me. It would be nice if the landlords and tenants could have a happy medium but the government steps in because they both end up being too greedy and wanting too much. Does the want ever end??
Posted by: Leo | Dec 10, 2021 11:55:07 PM
Again McGuinty screws us without taking us out to dinner yay!!! We need a real leader who has actually been a broke ass and is touch with real life as we know it , the politicians don't care and we pay and pay and pay , when does it end ??? When do seniors get a break ?? When do students get a break ?? When does reality kick these people in the ass and come down to earth ?? When ?
Posted by: Betsy Springer | Dec 12, 2021 8:03:42 AM
I am replying to comment made by contact Dec. 10. I just can't believe what you wrote. You obviously have a well paying job or own your own business that is doing well and you really don't care about your fellow human beings. You remind me of the Republicans in the US. Go ahead and raise your rental 100% and see how many people come knocking at your door. Has it ever occured to you that people can NOT afford greedy landlords. You could also go back to elementary school and take a course on grammar 101 and learn how to write properly.
Posted by: Ron | Dec 12, 2021 10:32:47 AM
More 'nanny state' politics from McGuinty. When more Government/bureaucracy becomes the answer to everything... I guess we should just give up.
Posted by: John Gaul | Dec 12, 2021 10:34:28 AM
Government got out of public housing on the false belief that the private sector would build low cost housing. That did not happen and now there is a shortage of affordable decent housing for renters.
Given the fact that landlords are in the business to make a profit renters with low incomes are vulnerable during economic downturns. So unless we want more homeless on the streets of our cities we have to do something to prevent that eventuality. A rent cap is a short term answer put a long term answer has to be found. In the best of all worlds we would review and improve the present tenant landlord act and come up with something that both could live with. The bottom line is that if we call ourselves civilized we will not allow more or our citizens to end up on the streets. We have too many already.
Posted by: Jeff | Dec 12, 2021 11:02:43 AM
Under the current partial rent control in Ontario there are already virtually no new rental units being built. With current construction costs it costs almost twice as much to build an apartment unit as it costs to pruchase an existing one (the value of an apartment building is based on the revenue it procudes - not the type of flooring or countertops is has like in the residential housing market).
A hard cap will result in absloutely no new builds! It will force more people to go "under ground" and will result in more of the units I've heard described in so many of the previous posts. Slum landlords, illegal basement apartments, illegal landlording practises and unreported income will abound. For the uneducated... I am saying all of the things being complained about here will only get worse with a hard cap!!!!!!!!!!!!!
Posted by: Interesting | Dec 12, 2021 11:03:22 AM
When the reward is great, the effort to succeed is great, but when
> >>> government takes all the reward away,
> >>> no one will try or want to succeed.
> >>>
> >>> Is this man truly a genius? Checked out and this is true...it DID
> >>> happen!
> >>
> >>> An economics professor at a local college made a statement that he
> >>> had never failed a single student before, but had recently failed an
> >>> entire class. That class had insisted that certain political party's position
would work
> >>> and that no one would be poor and no one would be rich, a great
> >>> equalizer.
> >>>
> >>> The professor then said, "OK, we will have an experiment in this
> >>> class on the proposed plan". All grades will be averaged and everyone will
> >>> receive the same grade so no one will fail and no one will receive an
> >>> A.... (substituting grades for dollars - something closer to home and
> >>> more readily understood by all).
> >>>
> >>> After the first test, the grades were averaged and everyone got a B.
> >>> The students who studied hard were upset and the students who studied
> >>> little were happy. As the second test rolled around, the students who
> >>> studied little had studied even less and the ones who studied hard
> >>> decided they wanted a free ride too so they studied little.
> >>>
> >>> The second test average was a D! No one was happy.
> >>> When the 3rd test rolled around, the average was an F.
> >>>
> >>> As the tests proceeded, the scores never increased as bickering,
> >>> blame and name-calling all resulted in hard feelings and no one would
> >>> study for the benefit of anyone else.
> >>>
> >>> To their great surprise, ALL FAILED and the professor told them that
> >>> socialism would also ultimately fail because when the reward is
> >>> great, the effort to succeed is great, but when government takes all
> >>> the reward away, no one will try or want to succeed.
> >>> It could not be any simpler than that. (Please pass this on)
> >>> Remember, there IS a test coming up. The 2012 elections.
> >>> These are possibly the 5 best sentences you'll ever read and all
> >>> applicable to this experiment:
> >>>
> >>> 1. You cannot legislate the poor into prosperity by legislating the
> >>> wealthy out of prosperity.
> >>>
> >>> 2. What one person receives without working for, another person must
> >>> work for without receiving.
> >>>
> >>> 3. The government cannot give to anybody anything that the government
> >>> does not first take from somebody else.
> >>>
> >>> 4. You cannot multiply wealth by dividing it!
> >>>
> >>> 5. When half of the people get the idea that they do not have to work
> >>> because the other half is going to take care of them, and when the
> >>> other half gets the idea that it does no good to work because
> >>> somebody else is going to get what they work for, that is the
> >>> beginning of the end of any nation.
> >>>
> >>> Can you think of a reason for not sharing this? Neither could I
Posted by: Jeff | Dec 12, 2021 11:24:45 AM
Interesting... so true... one of the best things I've ever read - this should be posted at the start of every one of these blogs!
Posted by: Interesting | Dec 12, 2021 11:30:18 AM
Thanks Jeff
Posted by: Mr. X | Dec 12, 2021 11:58:04 AM
Renting in Ontario is getting increasingly harder by the minute...I worked for a Lawyer making the best money I ever had in my life and 97% of my pay cheque went to the rent, and when something broke or needed repairing the landlord would always tell me "oh we'll put it on our to do list" or when I would offer to fix it he would tell me no and tell me his sister who was a supposed handyperson would do it an she would never show...Do I feel sorry for landlords, absolutley not, because at the end of the day tenants are always expected to obey the landlord and tenant act and the landlords can do whatever they please, if you really wanted to give tenants a break get rid of the "first and last months rent" b.s., that is also another gouge the landlords use to get money out of tenants for repairs when they move out. 80% of landlords are greedy parasites that need to be dealt with.
Posted by: smally | Dec 12, 2021 12:20:13 PM
If the government wants to cap rent increases, then they need to balance that by limiting the increases in property tax, insurance, utilities, mortgage interest rates etc. so the landlord is not the one paying all the extras over time. Small investors who work all their life and try to scrape a little together to get an investment property wouldn't be able to survive without being able to pass on the true cost of a residence to the tenants, who choose to live there. In fact renters don't even pay the true costs of their housing, so they already get subsidized by the owner, no need for the government to play favourites and only help them.