Rental Housing Crisis

It’s true we have a serious housing crisis – not just Rental Housing.

As a mortgage broker, realtor or property manager we are so lucky when we put to good people or families in their living accommodations. We have a true affordability issue and not only in housing, but in the Rental market as well. At Robert Floris’ Mortgage Architects office, we will try to demonstrate why government regulations have had an undesirable effect on Ontario‘s market. For brevity, I will keep this very simple.

They say life works like a pendulum. For example, all the laws were skewed for men and then it started shifting. Companies once held all the power and then unions. It is no different in the Rental market. The landlords held the power and now the tenants do. Why would a developer build an apartment Rental when they have such restraints under the landlord and tenant board and the residential tenancy act.

If you were a developer would you want these headaches:

• A tenant could go up to six months before being evicted
• These same tenants once removed go to their next landlord
• Tenants could cause damage before being evicted and have little or no chance at recovering any financial payback
• Tenants do not appear on Equifax for non-payment so it doesn’t affect their credit
• It takes over 20 years to recoup a developers investment (just develop a condo and get your investment a lot faster)
• No tax incentives for building rental units
• Heavy development fees

Not only are developers not interested, but hard-working middle-class homeowners are starting to sell since they have endured the same issues from tenants in terms of non-payment and other issues. It is not hard to see why we are in a housing crisis. The few Rental properties that exist can command large rents.

If a developer decided to build a condo, their development costs are between 20 to 25% per unit. Who pays? You got it: the consumer. Now you know who contributed to this housing crisis, the same people who are supposed to prevent it; our elected officials.

Please call me!

Any questions, please call Robert Floris’s office, no obligation, easy to talk to, honest answers.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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