If you’ve purchased a new condo in Toronto and are looking to rent it out, you must be aware of the new rent control policy announced by the Ontario government. Read on to learn more about the recent changes under the ‘Plan for the People’ initiative.
New Rental Policy for Condos in Ontario
The government of Ontario has announced that, in addition to any expansions and extensions to existing units that are in use as apartments, new dwellings and older ones that have remained unoccupied since November 15, 2018, will no longer be subjected to rent control.
Rent Control on Older Condos
If you have been renting out your condo, whether on a monthly basis or a yearly lease agreement, you will still be protected by the rent control rules. However, know that if an addition is made to the dwelling, and the new division or divisions fall entirely within the new addition, those new portions would not be subjected to rent control. Also, for rental units, you can increase the rent amount only on the annual capped amount which is set at 1.8% for the year 2019.
Earlier in 1997, there was a similar implementation of a rent control policy on new dwellings that led to an increase in the construction of new buildings. This can be attributed to the rise of rents in Toronto as compared to other cities.
The Reason Behind Eliminating Rent Control
For the past few years, the number of people looking for rentals has increased at a rapid pace, while the level of new constructions has not increased by much. This undersupply of units has led to low vacancy rates in the rental market. It is believed that the government has formulated policies to increase the supply of housing, rent control being one among them. To put it clearly, this measure is to help address the current affordable housing shortage by encouraging developers to build more condos and apartments.
Effects of Removing Rent Control on New Condos Available for Sale in Toronto
Although there are mixed opinions on this initiative regarding the ROI of investors or the landlords and protection of the renters, the bottom line is that it will help create a balance between the number of units available for renting and the potential renters in the city.
Explore the New Luxury Condos for Sale in Downton Toronto
The new condos by The Davies are a reflection of opulence and elegance along with comfortable and luxurious living. We provide a variety of high-end features including the following:
- Spa-inspired powder rooms and bath areas
- Private elevator access to all suites
- Contemporary interiors with pre-finished engineered hardwood flooring
- Luxurious kitchens with full-size appliances, custom-designed cabinets, and convenient lighting
- Outdoor amenities including a conference room, avenue room, rooftop lounge, and guest suite for visitors
- 24/7 concierge services along with secured resident and visitor parking
- Excellent security features to offer you peace of mind
For more information about our new downtown Toronto condos for sale, reach out to our sales team by calling 647-360-9588. You could also register online with us for more details and view our floorplans to have a better idea of penthouses and other suites.