Here are three pieces of info that will be of interest to Real Estate Investors in the Greater Toronto Area right now.
⚖️ Landlord & Tenant Board to Reduce Wait-times for Case Reviews
Most Landlord-Tenant relationships are positive. But if a Landlord and Tenant have a disagreement that can’t be resolved, they can take their case to the Landlord Tenant Board. Unfortunately, for the last few years, the wait time for a dispute to be heard at the LTB has grown. This was somewhat triggered by pandemic shut-downs, although wait times weren’t great even before COVID. To help clear this backlog of Landlord/Tenant disputes, the Ontario government recently announced a $6.5m investment into the LTB. This will allow them to appoint more adjudicators and hire more staff to deliver faster results for both tenants and landlords. This is an initiative that the Ontario Real Estate Association pushed for more tools to tackle appeal and dispute backlogs, helping mom-and-pop investors provide quality rentals across the Province.
For more info, click here
🏘️ Quadplexes…Coming to a street Near You.
Housing continues to sell (and rent) at a rapid pace. We can’t keep up with the demand, Toronto’s recent removal of bylaws (https://www.cbc.ca/news/canada/toronto/toronto-approves-multiplex-vote-1.6839296) that previously prevented property owners from turning single-family dwellings into quadplexes. Higher density is now the name of the game. It will be interesting to see which surrounding municipalities follow suit.
For Landlords and property owners: they could collect more rent per square foot than they could previously.
For Tenants: The supply of available housing could (eventually) increase.
For Home Buyers: Multiplex properties will help home buyers with affordability. For example, a $1.2m home with a 20% downpayment = monthly mortgage payments of $6,700. This might be unmanageable for many. But factor in $2k rental income, and all of a sudden that payment is a whole lot more manageable.
For Contractors: Great time to be a basement renovator!
This could be concerning news for some residents who may see the density increase in their communities. It will certainly present some parking challenges. And It may change the desirability factor of several neighbourhoods.
Coach Houses Were The Answer
I get it. Our governments are scrambling to solve our housing shortage. But I can’t help but feel that squishing multiplexes into communities with mostly single-family dwellings will get a bit messy. The builders of the Cornell Community in Markham (https://susantaylorgroup.com/communities/cornell/) got it right when they offered their pre-construction home buyers “coach houses” as an upgrade to single-family homes. The builder factored in parking, density, and made sure the units were attractive and practical. Today, a 1-bedroom coach house rents for approximately $1750/month, and that usually includes utilities. A nice extra income for Landlords to help with their housing expenses, and great for tenants that want a private above-ground space to live. I hope that more builders consider these as they plan future communities.
In the meantime, if you’re considering a property that has a secondary suite, please contact us! We know what to look for.
Should I Buy Property With Friends or Family?
Lots of people want to invest in real estate, but with Toronto housing prices reaching all-time-highs, many don’t have the resources to go it alone. How about making a co-investment — joining forces and funds with a friend or family member to buy a house or condo? Might not be a bad idea.
Click here (https://www.cibc.com/en/personal-banking/smart-advice/buying-or-renting-a-home/buying-house-with-friends-family.html)
for pros and cons, and important conversations to have before partnering up.
Resources for Real Estate Investors
* SusanTaylorGroup.com/investment <– want to invest? We can help. We have helped countless individuals and holding companies purchase residential properties, and they have all benefited from positive cash flow, appreciation, or both. We are investors ourselves. We know what to buy and when to buy it.
* Ontario Ministry of Municipal Affairs and Housing <— go here for general info about rental rights, rent increase guidelines, and rental housing enforcement guidelines.
* Ontario Landlord & Tenant Board <— go here to access forms for landlords and tenants to use for starting/modifying/ending tenancies.