Posted 7.24.13 @ 10:20
The skyrocketing rate of condo rents in the GTA has been in the news lately, but for a good reason! The provincial rent control laws have a loophole, and a lot of condo renters are finding out it’s perfectly legal to have 2, 3 sometimes 4 rent raises in a year. The Landlord and Tenant Act just doesn’t cover condos like it does other types of dwellings, and here we’re going to talk about how the loophole may soon be closed and how it could affect you if you rent.
The Time Loophole
If a building wasn’t occupied on or before Nov, 1, 1991, the rent control rules just don’t apply. With so many new condo units going up just in the last couple years in the GTA alone, it’s not hard to see where the problems start. If you’re a condo investor, this is great news: you can keep upping the rent again and again to keep up with the skyrocketing cost of real estate (especially luxury real estate) – but if you’re a tenant it’s not so great for you.
Rents Rising Ever Skyward
Many popular 2 bedroom condos for rent have jumped from $1800 to $2500 in the last 5 years, which just goes to show you that sometimes you’re better off just buying a condo instead of renting one. Even with 30,000+ new condos being built across Toronto proper in the last five years, housing still remains an issue. Again it’s great to be a condo investor, not so great to be on the other side of the fence as a renter. People are paying a premium of 10-15% per year jumps to be close to public transport and work; there was recently a big story in social media about how people are paying upwards of $60k for a PARKING SPOT!
More Units, More Problems?
It’s said that even with so many more condos coming on the market that they’re affecting rent prices – which is the exact opposite of what we want. People will move upward into the nicer units on the top floors, new renters get a nice deal for the first year on a long term rental contract but then halfway through see their rent jump. Maintenance fees for both renters and owners will jump higher and higher as a “bad” area improves into something better, sometimes as high as 50% to 80% in a single year.
One of the worst things about renting a condo is that no one has to tell you that you’re not covered by the rent control rules. Sometimes you’re just better off with a mortgage to pay and equity that you can cash in on later. If you have your heart set on renting, working with an Oakville luxury realtor that understands the condo market (read:us) is going to be your secret weapon! We’ll help you understand the real cost of renting and help you get all the information you need to know before you buy.