There is a great deal of news surrounding the rising cost of rent in Canadian cities. However, many condominium owners who seek to earn rental income from Ontario real estate investments are actually in the negative due to the cost of purchasing and maintaining a property. Proposed changes to condominium law and rental law may require these landlords to restrict the rents they charge while costs related to condo ownership continue to rise.
For example, the average rental rate in Toronto is currently $2.99 per square foot. That adds up to $2,219 for a 734-square foot condominium. Despite this 10.3 percent jump in price over the last year, a recent report shows that many landlords are still producing no income. An incoming condominium law is expected to expand rent control to prevent such sharp increases in rates. Currently, buildings constructed after 1991 are exempt from the law, which requires landlords to limit rent increases to the rate of inflation.