Every little while, we send out a brief summary of notable news that will be of interest to Investors in residential real estate in the Greater Toronto Area. Here are three interesting pieces of info that have crossed our desk over the last few weeks.
Rent Increase Guidelines for 2024 🏡
The Ontario Ministry of Municipal Affairs and Housing announced on June 30 that the new provincial Rental Increase Guideline for 2024 has been capped at 2.5%. The rent increase guideline is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board. (This cap only applies to dwellings that were constructed before 2018. There is no cap on rent increases for homes constructed after 2018.)
A slightly bigger increase might be allowed if a Landlord has done “extraordinary” renovations or repairs to the property, or if property taxes have increased an “extraordinary” amount.
Click here for guidance on the Landlord Tenant Board’s definition of “extraordinary” in these scenarios.
Opening up a Hornets Nest 🐝
An interesting situation came up this summer. My tenants contacted me to advise that a wasp nest was in their backyard. I immediately said I’d take care of it. But then I got to thinking…. is this really the responsibility of the Landlord to remove a wasps nest from the property, especially if the nest is outdoors? I wasn’t sure, so I went to a Landlords Facebook Group that I follow and created a 2-question poll so my fellow Landlords could weigh in.
Option 1: Landlord’s Responsibility or Option 2: Tenant’s Responsibility. At last count, 86% of voters (of the 191 votes) felt it was the Landlord’s responsibility. The comments that followed (101 of them! Everyone has to give their 2-cents! 🙄) were hilarious. “Of course, it’s the LL’s responsibility. If you don’t know that, you shouldn’t be a Landlord! 🤕” …….. “If it’s inside, LL should take care of it. If it’s outside, it should be Tenants responsibility”. …….“Of course it’s the Tenant’s responsibility. They’re renting the whole house, they should take care of it. What’s next — you’ll have to go over to swat all the mosquitoes too????? 😆 🦟”
I googled “Ontario.. Landlords.. wasps.” The top hit (that leads to the website of an exterminator!!) says that “Landlords are responsible for pest control”. However, buried in the fine print of the Residential Tenancies Act, it says that “A residential complex shall be kept reasonably free of rodents, vermin, and insects.” So does a “complex” include the backyard? And what is “reasonably”?
Sigh. Enough researching. Time is money. And they’re good tenants. “Hello Orkin…. I’ve got a situation I need to take care of…….”
New real estate taxes in Toronto
Not only will the City of Toronto increase land transfer taxes on homes valued over $3 million starting January 1, 2024, they are also proposing an additional land transfer tax on buyers of residential property where the purchaser owns more than one property within Toronto. Ugh. Stay tuned. Or buy in the 905.
Here is the link to the full article.
The AirBnB apocalypse in NYC 🏙️
The old slogan was I❤️NY. But clearly NYC does not love AirBnB. Starting this month, all short-term rental hosts in New York City must register with the city, and only those who live in the place they’re renting—and are present when someone is staying—can qualify. And people can only have two guests. Will Toronto follow suit?
Here is the link to the full article.
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 cashflow, 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.