Groups representing rental operators in Ontario have indicated that many landlords are contemplating a shift from long-term rental agreements to short-term leases. This transition is seen as a means to enhance profits and navigate challenges posed by the Ontario Landlord Tenant Board, which is currently grappling with a significant backlog.
The primary concern for landlords in Ontario is the possibility of having to cover substantial mortgage payments independently if reliable rental income isn’t forthcoming. Davelle Morrison, a broker at Bosley Real Estate, highlighted this shared worry among landlords, emphasizing that the existing lengthy process to address tenant issues with the tribunal often leaves landlords feeling disadvantaged.
Morrison explained, “It takes landlords eight months just to book an appointment with the tribunal if their tenants are giving them problems, and (they) often feel the board’s rules are not on their side.”
Switching to short-term rental arrangements would give landlords greater control over their properties and potentially result in higher profits.
Housing Affordability Challenges Persist in Toronto
In Toronto, the struggle for affordable housing remains a pressing issue. Data from the Toronto Regional Real Estate Board revealed an annual 11.6% increase in the average rent for a one-bedroom condo apartment, reaching $2,532 per month in the second quarter.
A recent report by Zoocasa shed light on the significant hurdles faced by individuals trying to save for a minimum down payment on a condo apartment. The findings indicated that residents in most of Toronto’s neighborhoods would need 16 months or more of rent to accumulate the required down payment.
For the City of Toronto as a whole, it would take the average renter 17.9 months to come up with the $51,983 down payment necessary to purchase the average condo apartment priced at $769,832
Zoocasa
The escalating average condo prices in the city, coupled with the considerable rise in lease rates, underscore the persistent challenges of housing affordability in Toronto.
