Many Toronto Landlords Are Asking ‘How Much Can I Raise the Rent in 2014?’ You Won’t Like the Answer
The year 2013 started with many predicting property prices to come crashing down in Toronto.
There were lots of doom and gloom pundits predicting a huge lowering of house and condominium prices.
The good news is it didn’t happen.
In fact, the market was stable and prices increased most neighborhoods.
Toronto Vacancy Rate
According to the Toronto Star vacancy rates in 2013 were just about equal to the figures from 2012.
Ed Heese is a senior market analyst at the Canada Mortgage and Housing Corporation (CMHC).
He said the Toronto market was strong because of two main factors:
1. With new mortgage rules fewer young renters were becoming new house owners
2. More young people are seeking to live and work (and rent) in Toronto
There are a lot of good tenants out there. And you don’t even have to gift them gifts if you don’t want to.
While there are more rentals units coming on the market the demand still led to rents being up 3% compared to a year earlier.
Good News for Toronto Landlords
With vacancy rates holding firm things are looking good for 2014.
Most experts also predict steady low interest rates and more immigrants moving to Toronto and the GTA.
A large number of newcomers to Canada choosing our area as their home has also benefited Hamilton Landlords and investors all around southern Ontario.
Challenges Ahead: The Rent Increase Guideline for 2014
As experienced landlords know, our province has ‘rent control.’
This means we can only raise the rent for our current tenants by an amount announced by the provincial government.
The Toronto Sun announced the 2014 Rent Increase Guidelines and many new landlords were stunned.
Why?
Because Toronto landlords can only raise the rent by 0.8% in 2014.
It’s the second lowest rate since 1975 and most landlords don’t believe it comes anywhere near meeting the higher costs we will face.
1991 Rent Increase Guideline Exemption
Landlords with newer properties do not need to follow the government’s guideline.
It’s very important to know that if your property was not built before November 1st, 1991 you can raise the rent as much as you feel necessary to cover your costs.
You still must give proper notice to your tenants.
Opportunities and Challenges for Toronto Landlords in 2014
The low allowable rent increase is a challenge we face in the new year.
In fact, it’s only one of the challenges.
However Toronto landlords are ready and excited about 2014.
With good tenant screening and lots of good tenants out there, the new year is one filled with opportunity.
