— Landlord Relief (@LandlordRelief) September 25, 2013
The above tweet references a very interesting article. What is clear is that there continues to be a shortage of quality rental housing in Toronto. As a result, the demand for Toronto rentals has been high – including the demand for rental condominiums. In fact, it has been reported that “bidding wars erupted for the best condominium rentals“. The rapid building of condominium units (many of which are investor owned and become rental units) has masked this problem. The article also notes (quite correctly) that tenants have no “security of tenure” in privately owned condominium units. (This is because the landlord can either move in himself or sell the property. It is true even with the difficulties associated with selling a property with tenants in it.) Furthermore, although this is not widely discussed, rental condominiums put into service after 1991 are NOT subject to Ontario rental controls. That said, in a competitive rental market, landlords must be thoughtful about how to raise residential rents.