Another legislation trying to fix a very broken rental ecosystem in Ontario. Problem #1 is rent control. If ON adopted AB's model they wouldn't have these issues -
What does AB do differently? We DONT have rent control, the rent is controlled by supply and demand as it should be. The only restriction is that a LL cant raise the rent more than once in a 365 day period, but there is no limit on how much it can be raised unless its obviously punitive. Eg 100 a month raise is acceptable, 1000 a month is obviously punitive and likely to be disallowed by our Residential Tenancy Dispute Resolution Service, a quasi judicial body that unlike ON's LTB is NOT broken and is NOT inundated with so many cases that its failing under its own weight. Here, a LL can evict a tenant who refuses to pay in less than a month. None of this 6 month wait baloney and then two postponements as the tenant games the system and continues to destroy the property. In AB if there is proof of wilful vandalism the eviction period is 24 hours. We dont put up with that bs.
What does demand pricing mean? It means when demand is way up, as it has been in the last 3 years in Calgary, a LL can raise the rent to whatever the market will bear. It ALSO means that when demand cools as it has in the last few months, that rents DROP in relation to demand. Overall rents have dropped almost 10% year over year.
This takes away the problem of a LL knowing that their rental is underpriced by hundreds of dollars a month and resorting to shady renoviction tactics to try and raise it. Demand pricing works and it works well.
All rent control does is create temporary solutions for tenants that eventually frustrate landlords and cause issues. Free market supply and demand is a far superior system. And for those on the bottom end of income we still have some subsidized housing and low income housing so they're not completely priced out although admittedly there will always be more demand for low income housing than the province can supply.
Lol fuck no, free market for housing isn't the solution, land lords raising pricing to whatever they feel like the market will bare is not superior.
It obviously and empirically is. We dont have a housing crisis in Alberta. Our landlord tenant board actually works. And we dont have renoviction issues that need legislation to fix. Rents are MUCH more reasonable than Ontario. And we have had a massive influx of new residents from ON and BC, the two provinces with strong rent control, because our system is far better for both tenants and landlords.
“there is no limit on how much it can be raised unless its obviously punitive. Eg 100 a month raise is acceptable, 1000 a month is obviously punitive and likely to be disallowed by our Residential Tenancy Dispute Resolution Service”
So there is a limit, but it depends on how well the landlord gets along with the people making the decision, instead of being codified into law.
Here, a LL can evict a tenant who refuses to pay in less than a month. None of this 6 month wait baloney and then two postponements as the tenant games the system and continues to destroy the property. In AB if there is proof of wilful vandalism the eviction period is 24 hours.
This is better than some scenarios, but again seems ripe for abuse.
It doesnt get abused because you can post a 24 hr notice but there's a very good chance it will get ignored which means you still have to go to RTDRS to get an actual court order for eviction which isn't likely to happen in less than two weeks at best. But its still far faster than ON's LTB by a mile.
That’s stupid. Newer buildings in Toronto don’t have rent control already and abide by the same rules as Alberta. The problem is that they price you low to get you in the door and then jack up the rent by hundreds of dollars the next year to extort you. Either pay through the nose or leave.
What that gets you is people who have no long term place because there’s no stability. No community forms because there’s just a cycle of the next group being taken advantage of.
Owners don’t have their yearly fees dictated by the market. They have stability.
Rent should be set to the carrying cost of the unit, sometimes slightly below to account for equity gains. Housing isn’t an investment vehicle and if you’re going to treat it like one inflationary increases are definitely sufficient to squat on property while it gains equity.
Landlords can set the price appropriately on the initial lease, raise to whatever they want between tenants, and can get approved above guideline increases. I have never seen year-over-year prices lower in the same unit and what you’re doing is leaving the fate of an entire class of people at the whims of random individuals with all the power to extract as much as they possibly can from them for the sake of the “free market”.
Also Ontarios LTB is ‘broken’ because it’s been underfunded for years and our current conservative government refuses to expand. Ontarios population has grown rapidly over the last few decades and so has the population of renters. The LTBs service has essentially remained the same. That means that they do not have capacity to handle the population resulting in long wait times that make both sides of the table unhappy.
You're talking about rent manipulation by a corporate landlord. Those of us 'mom and pop' landlords have no desire to get people in a place and then jack the rate only to have to replace them again the next year. Stability, even if rent is slightly below market rent, is FAR more desirable and much more beneficial financially. Tenants moving out incurs our biggest expenses and costs, so no one wants to make that happen and one month of a unit sitting empty waiting for a new tenant easily wipes out any increase in rent so we generally avoid that as much as possible.
There's a happy medium where both tenant and landlord are happy and I find that to be when rents are 50 to 80 under fair market rent. If tenants know they're getting a decent deal and that moving is likely to not only cost them moving costs PLUS higher rent, they'll stay around, which works for both of us. Through in some advantages like allowing pets with no additional fees and they'll stay a LONG time.
this takes away the problem of a landlord knowing that their rental is underpriced by hundreds of dollars a month
Awww, is poor gaping lazy asshole not getting as much free money as it thinks it "deserves"?
Another legislation trying to fix a very broken rental ecosystem in Ontario. Problem #1 is rent control. If ON adopted AB's model they wouldn't have these issues -
What does AB do differently? We DONT have rent control, the rent is controlled by supply and demand as it should be. The only restriction is that a LL cant raise the rent more than once in a 365 day period, but there is no limit on how much it can be raised unless its obviously punitive. Eg 100 a month raise is acceptable, 1000 a month is obviously punitive and likely to be disallowed by our Residential Tenancy Dispute Resolution Service, a quasi judicial body that unlike ON's LTB is NOT broken and is NOT inundated with so many cases that its failing under its own weight. Here, a LL can evict a tenant who refuses to pay in less than a month. None of this 6 month wait baloney and then two postponements as the tenant games the system and continues to destroy the property. In AB if there is proof of wilful vandalism the eviction period is 24 hours. We dont put up with that bs.
What does demand pricing mean? It means when demand is way up, as it has been in the last 3 years in Calgary, a LL can raise the rent to whatever the market will bear. It ALSO means that when demand cools as it has in the last few months, that rents DROP in relation to demand. Overall rents have dropped almost 10% year over year.
This takes away the problem of a LL knowing that their rental is underpriced by hundreds of dollars a month and resorting to shady renoviction tactics to try and raise it. Demand pricing works and it works well.
All rent control does is create temporary solutions for tenants that eventually frustrate landlords and cause issues. Free market supply and demand is a far superior system. And for those on the bottom end of income we still have some subsidized housing and low income housing so they're not completely priced out although admittedly there will always be more demand for low income housing than the province can supply.
Lol fuck no, free market for housing isn't the solution, land lords raising pricing to whatever they feel like the market will bare is not superior.
It obviously and empirically is. We dont have a housing crisis in Alberta. Our landlord tenant board actually works. And we dont have renoviction issues that need legislation to fix. Rents are MUCH more reasonable than Ontario. And we have had a massive influx of new residents from ON and BC, the two provinces with strong rent control, because our system is far better for both tenants and landlords.
So there is a limit, but it depends on how well the landlord gets along with the people making the decision, instead of being codified into law.
This is better than some scenarios, but again seems ripe for abuse.
It doesnt get abused because you can post a 24 hr notice but there's a very good chance it will get ignored which means you still have to go to RTDRS to get an actual court order for eviction which isn't likely to happen in less than two weeks at best. But its still far faster than ON's LTB by a mile.
That’s stupid. Newer buildings in Toronto don’t have rent control already and abide by the same rules as Alberta. The problem is that they price you low to get you in the door and then jack up the rent by hundreds of dollars the next year to extort you. Either pay through the nose or leave.
What that gets you is people who have no long term place because there’s no stability. No community forms because there’s just a cycle of the next group being taken advantage of.
Owners don’t have their yearly fees dictated by the market. They have stability.
Rent should be set to the carrying cost of the unit, sometimes slightly below to account for equity gains. Housing isn’t an investment vehicle and if you’re going to treat it like one inflationary increases are definitely sufficient to squat on property while it gains equity.
Landlords can set the price appropriately on the initial lease, raise to whatever they want between tenants, and can get approved above guideline increases. I have never seen year-over-year prices lower in the same unit and what you’re doing is leaving the fate of an entire class of people at the whims of random individuals with all the power to extract as much as they possibly can from them for the sake of the “free market”.
Also Ontarios LTB is ‘broken’ because it’s been underfunded for years and our current conservative government refuses to expand. Ontarios population has grown rapidly over the last few decades and so has the population of renters. The LTBs service has essentially remained the same. That means that they do not have capacity to handle the population resulting in long wait times that make both sides of the table unhappy.
You're talking about rent manipulation by a corporate landlord. Those of us 'mom and pop' landlords have no desire to get people in a place and then jack the rate only to have to replace them again the next year. Stability, even if rent is slightly below market rent, is FAR more desirable and much more beneficial financially. Tenants moving out incurs our biggest expenses and costs, so no one wants to make that happen and one month of a unit sitting empty waiting for a new tenant easily wipes out any increase in rent so we generally avoid that as much as possible.
There's a happy medium where both tenant and landlord are happy and I find that to be when rents are 50 to 80 under fair market rent. If tenants know they're getting a decent deal and that moving is likely to not only cost them moving costs PLUS higher rent, they'll stay around, which works for both of us. Through in some advantages like allowing pets with no additional fees and they'll stay a LONG time.
Awww, is poor gaping lazy asshole not getting as much free money as it thinks it "deserves"?