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Toronto Rental Cost (& AirBnB) Issues

SunriseChampion said:
So, I recently became privy to all sorts of rental information in regards to my neighbours. So, the neighbour next door to me, with a slightly better view is paying 935$/mth for a 1 bedroom that is 9m2+ bigger than mine whilst I'm paying 1700$/mth for my smaller 1 bedroom, because it's partially renovated. I'm not jealous or anything...I mean, the lady's a pensioner....but it makes me laugh inside (laugh because crying is defeatist). A bit of new tile, new kitchen cupboards and bottom-end stove and fridge and double the price! Welcome to Toronto.
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This is also a good example about how not all landlords are evil.

If not for the discretion of individual landlords, that pensioner you describe may be forced to pay rent comparable to yourself. Regulation to ensure conformity across the market can end up hurting many people.
 
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WislaHD said:
This is also a good example about how not all landlords are evil.

If not for the discretion of individual landlords, that pensioner you describe may be forced to pay rent comparable to yourself. Regulation to ensure conformity across the market can end up hurting many people.
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It is almost universal that newer tenants pay more rent than those who are long-term residents. Partly it is that they objected to increases in the past (or the landlord did not impose one) and also that the current market price for rentals is high!
 
Yeah, it's entirely a function of her tenure here.

In fact, if I hadn't had moved out of my flat in this building 12 years ago, I'd now be paying about $1250/mth for the biggest 1-bed layout in this building on a floor high enough to have the best lake views. That unit now is going for.........I shit you not.... $2100. I was paying $900 when I left in 2007....and hydro was included back then.

Needless to say, I wish I hadn't had moved back in that day. Then again, I wouldn't have gone on the adventures I did subsequently.

Best not to have regrets.
 
Two Star articles on the challenges created by housing costs for the working (largely service) class in the city:


They cook Toronto’s food, and build its houses — but can they afford to live here?
By Tess Kalinowski Wed., June 26, 2019

What happens when the workers who make a city function can no longer afford to live there?

In Toronto, some paramedics are commuting from as far away as St. Catharines and Campbellford. Social workers are competing with their clients for housing. And cooks, who are turning out tasty fare in the city’s signature restaurants, are often priced out of the neighbourhoods they serve.

There are a lot of people in their 30s working in Toronto kitchens who are still living at home with their parents, says chef and caterer Ang McCluskey, who has spent decades cooking and mentoring young kitchen workers.
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www.thestar.com

They cook Toronto’s food, and build its houses — but can they afford to live here?

The Toronto Region Board of Trade mapped out home options for five occupations to highlight the city’s housing crisis. They found there are virtually no home ownership options downtown for those earning less than $100,000.
www.thestar.com www.thestar.com


Five jobs and the Toronto housing struggles that come with them
By Tess Kalinowski Wed., June 26, 2019

www.thestar.com

Five jobs and the Toronto housing struggles that come with them

A paramedic, social worker, construction formworker, sous chef and grocery worker dish on their struggles to afford home ownership — or even rent — in Toronto’s heated housing market.
www.thestar.com www.thestar.com
 
Another issue on the flipside of AirBnbs- a difficult-to-maneuver Landlord and Tenant Board that makes AirBnbs more lucrative.

Ultimately, over-regulation (same in development) tilts the board towards large corporations which have the money and people who can navigate the system.

Delays at Landlord and Tenant Board cost couple thousands to evict 'nightmare' tenant
Myron Madey and Kevin Seguin say they are out close to $30K in owed rent, legal fees and cleaning
Talia Ricci Posted: Jul 02, 2019

A Toronto couple with a rental property in Oshawa, Ont., says the last seven months have been a nightmare.

Myron Madey and Kevin Seguin say the process of evicting a tenant who stopped paying rent took longer than it should have because of delays at the Landlord and Tenant Board.
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But Madey and Seguin, who say they are out close to $30,000 between the rent they are owed, legal fees and cleaning the home, say that's not enough.

"It took too long," Madey said, adding that during the lengthy process, the tenant fled.

"It's been horrible ... just a nightmare for us," he added.

It's an issue affecting many landlords in the GTA, Madey's and Seguin's lawyer says — tenants skipping out on rent and getting away with it, partly because the Landlord and Tenant Board can't deal with the cases fast enough.
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Jordan Donich, a lawyer who represented the couple says by the time the couple came to him, the situation was already bad. But his concerns span beyond this case.

"Why would you take a chance of supplying the market with affordable housing, or any type of housing if it means you have to wait half a year to get rid of a tenant, and you never recover your money?" Donich said.

The lawyer says in Madey's and Seguin's case, he was surprised that it took three months for them to get a hearing date, and even though they have an order, they haven't really won.

"What's a win is getting your money back," he said.
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Donich says tenants like theirs often know how to play the system. And if they don't care about having bad credit, it can be challenging to recover the money they're owed without pursing further legal action.

"This is a systemic problem and probably only experienced landlords or corporations know this."
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That being said- from Reddit:
If it's like other Tribunals, it's because this government has chosen not to reappoint adjudicators when their term ended, without replacement. That's what happened at the Local Planning Appeal Tribunal (a.k.a OMB) - numbers of adjudicators down nearly 50%.
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Interesting point that rental supply from condos is not a permanent supply.

One in three Toronto condos are investor-owned
KERRY GOLD JULY 3, 2019


More than one third of Toronto’s condo market is owned by people who do not live in the units, but prefer to rent them out, use them as secondary residences, or leave them empty instead.

The situation is not as drastic as Vancouver’s condo market, where about half of all units in the city are investor-owned, but it’s still a significant share of the condo market.
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Markham has the highest rate of not-owner occupied condos at 38.7 per cent, followed by Toronto city at 37.9 per cent, Mississauga at 35.6 per cent, Richmond Hill at 31.6 per cent, Brampton at 29.9 per cent and Vaughan at 29.7 per cent. The average for the Toronto area is 36.6 per cent of condos that are not owner-occupied.

The analysis fits with the findings of John Pasalis, president of Toronto’s Realosophy Realty Brokerage and analyst of the Greater Toronto Area. Mr. Pasalis believes most Toronto condo investors buy pre-construction and hang onto them for rental income or flip them after completion. The other major investor type are those who move into bigger places but hang on to their condos for rental income because of strong demand. Mr. Pasalis has found that Toronto condo prices rose significantly since the federal government introduced new mortgage “stress test” rules in 2016. Because first-time buyers were shut out of the detached house market, they turned increasingly to the condo market, driving prices up.
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As for the revelation that Toronto and Vancouver markets have a hefty share of investor-owned condos, Mr. Pasalis and others agree that it’s not an ideal situation if purpose built rentals aren’t coming online at the same time. Investor-owned condos often sit empty, or underused, and are easily utilized for short-term rental, all of which takes away from local housing. And even when rented out to locals, investor owned condos aren’t secure rental housing.

Purpose-built rental buildings offer far greater security because they aren’t at the whims of market forces. Investor-owned market condos are susceptible to shifting markets and their use as rental stock can ebb and flow, Mr. Pasalis says.

“I definitely see it as problematic that virtually all of the rental stock built in the GTA over the past 15 years has come from condominiums versus purpose built rentals.

“It’s problematic for a number of reasons. Firstly, those tens of thousands of units are not permanent – many of the condos that are currently used as rentals now are being sold to end users, which shrinks the pool of rental units.

“Finally, if condo prices take a bit of a hit in the near future, we could very well see a decent number of mom and pop investors rush to dump their units, which could make what would have been a modest cool down into a more severe decline.

“End users don’t rush for the exit when prices dip a bit, but investors are less tied to their units so are more likely to take their cash and run if they see a decline in the near future.”
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www.theglobeandmail.com

One in three Toronto condos are investor-owned

New data reveals scale of investment activity in residential market
www.theglobeandmail.com www.theglobeandmail.com
 
City is consulting about its 2020-2030 Housing Plan:

www.toronto.ca

HousingTO 2020-2030 Action Plan

The HousingTO 2020 -2030 Action Plan provides a blueprint for action across the full housing spectrum – from homelessness to rental and ownership housing to long-term care for seniors. This new plan was created following a comprehensive public and stakeholder consultation in 2019 and sets an...
www.toronto.ca www.toronto.ca
 
mjl08 said:
Article in the Guardian highlighting the Toronto AirBnB clampdown:

www.theguardian.com

Airbnb faces backlash in Toronto and Paris

Rental company hit by clampdown in Canada and unrest in France
www.theguardian.com www.theguardian.com
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It's the right decision, IMO. And these idiot AirBnB owners blew a good thing through their greed and now the whole thing has collapsed.
 
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Under the new rules, short-term rentals will only be allowed in landlords' principal residences for up to 180 nights a year for an entire house or apartment. Homeowners could also rent up to three bedrooms year-round on a short-term — defined as less than 28 days — basis.
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So a landlord can't use Airbnb to rent out a bedroom to a university student, since that would be more than 28 days?

I wonder if this impact home swapping services, where no money changes hands. https://www.lovehomeswap.com/how-it-works
 
Admiral Beez said:
So a landlord can't use Airbnb to rent out a bedroom to a university student, since that would be more than 28 days?

I wonder if this impact home swapping services, where no money changes hands. https://www.lovehomeswap.com/how-it-works
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I wonder why someone would use airbnb or similar for this type of rental. I assume colleges and universities still have housing services or at least bulletin boards for this. These online platforms take their cut.
 
At my work (I work in a condo) we have multiple people that own multiple units for the sole purpose of renting them out as STRs.

These people were expecting the appeal to go in their favor and never believed the city would win. I've never seen such a grim look on people's faces. They are now running for the exits before they lose their shirts.
 
Richard White said:
At my work (I work in a condo) we have multiple people that own multiple units for the sole purpose of renting them out as STRs.

These people were expecting the appeal to go in their favor and never believed the city would win. I've never seen such a grim look on people's faces. They are now running for the exits before they lose their shirts.
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Tell them they are (or were) leaches upon the city and its residents. What did they think was going to happen when the city is seeing a massive housing shortage, record numbers of condo units being built but no increase in vacancy rates?

Do the unit owners have any means of appeal? I wonder how the city will enforce this? I suppose they could run a comparison of people's legal residence against tax payer names, but what about properties owned by corporations? Does the city have the means to monitor AirBnB, VRBO, etc?
 
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