Partial Rent Control Relief

Yesterday the new Ontario conservative government issued their first fiscal update. Of interest to real estate investors, The government is also eliminating rent control on new rental units to increase housing supply across the province, but says rent control will remain in place for current tenants. The new policy will be a reversal of sorts from an initiative the previous Liberal government put in place, which imposed rent control on all buildings constructed after 1991. Under rent controls, landlords are limited to rent increases of 1.8% this year. Electricity rates went up an average of 14.8% per year from 2008 to 2017 for a total of 133% over that 9 year period. Interest rates are landlords largest expense. Interest rates have nearly doubled in the past two years and will go up again in the next year. Yet landlords are limited to increases of 1.8% per year.

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