The Real Story Behind Rent Controls in Ontario

18 May 2017

The Ontario Government has introduced new rent controls  effective April 20th, expanding rent controls to include units built after 1991.

So why the rush? A CBC reporter published a story on how her landlord had doubled her rent overnight from $1,600 to $3,200 per month and she was now forced to live on a friend's living room couch. Now I know you can rent a studio for just $1,600, so I contacted her to ask why the landlord would do that to her. There are only two reasons, 1. The Tenant isn't paying rent, or 2. The Landlord wants to sell the unit vacant.

She said that she always paid her rent, but her landlord still wanted to sell. If you know anything about tenants, when a landlord wants to sell, they do two things to thwart the sale. They refuse showings on a regular basis and they keep the unit messy.

Nonetheless, I said to her, let me find you a new unit for you to rent, she declined my offer, because it would spoil her story.

The Ontario Government took her explanation and story and made it into a feature of a new real estate plan for Ontario.

Now you now why they have rent controls in Ontario.