The Ontario government is keeping a close eye on the new rent control measures after a new report showed a negative impact from recent changes. Ontario’s housing minister has defended the measures, though he assures concerned parties that he is paying attention to the real estate market in light of new rules. According to the Federation of Rental-Housing Providers of Ontario, the expanded regulations may be connected to the 1,000 rental units being cancelled or converted into condos over the summer.
The Fair Housing Plan was implemented in April. Under these rules, rent control was expanded to all units in Ontario. Previously, they only applied to units built before 1991. The government has also released surplus lands to generate 2,000 new rental units and has a dedicated team responsible for speeding up the affordable housing project.
However, the Federation claims the province is 6,200 units short of the 34,000 rental units needed to keep up with demand. Their data suggests that real estate investors and builders may choose to convert rental units to condominiums or cancel their investment altogether if regulations restrict their options. Ontario’s housing minister argues that these cancelled rental units may not have been affordable.
Those who purchase real estate for the purpose of rental income must understand the laws that govern the purchase and rental of the home. Involving an Ontario lawyer is a good idea for anyone taking this step. Consulting a lawyer may also be a good idea for those who currently own property and wish to better understand provincial rent control laws.
Source: CBC News, “Ontario housing minister defends new rent control rules in face of report on negative impact“, Muriel Draaisma, Sept. 26, 2017