The Unexpected Consequences of Rent Control

07 February 2018
Remax-Condos-Plus

Rent controls in Ontario have unexpected consequences. Let us explain.

Rent controls have created two markets. For Tenants who stay put, they'll pay below market rents. For new tenants, they can expect to pay even more because of a shortage of rental units. This shortage happens because more and more people are moving to Toronto each year. For those who do come, and for those who are already living here, they can't afford to buy, so they must rent.

What we're now starting to see is Tenants asking to add a second person to their lease. The first person moves out, while the second person stays put, and the unit stays under rent control.

Landlords - do not add a second person to your lease, either an existing one or new lease. You will get caught in the transfer go-around and will never be able to increase rents above the minimum.

Tenants - bad news. If you want to rent a unit with a partner or a friend, landlords will not put two people on a lease anymore. You'll have to qualify on your own, or get a guarantor who will not live in your unit.