Courtesy Greg Blok - Bennett real Estate Professionals
The Residential Tenancies Act (RTA), 2006 is what governs Landlord/Tenant relations. http://www.ltb.gov.on.ca/
- 80% of rental units owned by Landlords in Ontario are by "small investors" with less than 6 units
- 32% of people in Ontario are renters (1.35 million renters)
- 2% of the tenants in Ontario are considered "professional tenants" who seek to profit off unsuspecting landlords (27,000 tenants)
Tenants are provided free representation under the RTA, Landlords are expected to have "higher level of understanding".
You cannot have more than one month's rent in your possession. If you rent to a tenant, you get their last month's rent, ask for a certified cheque on the day you provide the keys.
NOT COVERED under RTA - Living units in which the roomer/boarder does share kitchen/bathroom facilities with the owner/landlord (includes the landlord's spouse, child or parent)
A rental complex or building of which no part was rented for residential purposes before November 1, 1991 is not subject to rental controls under section 6 of the RTA.
Landlords must provide to each tenant with an information pamphlet on the responsibilities of Landlords and Tenants. It is advisable to get the tenant to sign an acknowledgement of receipt of this document.
There are NO rental increases allowed to be carried forward. For 2011, the rental increase is 0.7%, if you do not increase the rent by this factor, it is lost, there is no carry forward.
Landlords cannot demand 12 postdated cheques.
When giving notice, if you send through mail, the accepted timing is it will take 5 days for notice to arrive, 3 days if done by courier.
Landlords can increase the rental deposit each year by the allowable rental increase.
Each year, landlords must pay the tenant the interest on their last month's deposit. Interest is calculated by using the number for the Consumer Price Index. If you do not pay annually, it is compounded interest, not simple.
Landlords must provide their full legal name and address to the tenant within 21 days of their taking occupancy. If you do not want the tenant to have your home address, you can provide your lawyer's office as an address.
All paperwork signed by tenant must be provided to them, including the rental application form.
TENANTS must
1 - not harrass the landlord
2 - pay the rent
3 - pay for any repairs for any damage they have done
4 - cannot change locks without giving landlord a key
On a rental application, make sure you verify all details, do not use their information, get the information direct from the source.
Previous landlords, not current landlords are the best source of information. In an independant survey, 80% of landlords in the Middlesex county, said they would give an dishonest reference for a current bad tenant. Get minimum 3 years and preferrably 5 year tenancy history.
Check their drivers license to verify their information. People can use aliases and give nicknames, not proper legal names.
On student rentals, get parental guarantees.
Under RTA, landlords can give upto 3 month's rental discount per year, without dropping the rent. That allows the annual increase on the actual rent, not a lower rent.
You cannot charge late fees, but you can give 2% prompt payment discount.
If tenants are not paying rent, you can refer them to the "rent bank" (Minstry of Community and Social Services). They can also help tenants with utility loans, rather than the landlord taking over the service.
Properties have to be kept at 21.1 degrees
For common information and forms - http://www.ltb.gov.on.ca/en/Key_Information/STEL02_111283.html
Tuesday, November 9, 2010
Friday, November 5, 2010
Aging Canadians Will Help Drive Growth in Condo Market
Excerpt from CMHC - Canadian Housing Observer 2010
The vanguard of the large baby boom generation—the generation born in Canada during the two decades (1946-65) after World War II—is on the verge of becoming senior citizens. The aging of Canada’s population will spur continued growth of condominiums, which more than tripled their share of the home ownership market over the past quarter century.
For young people, condominiums offer low maintenance burdens and the possibility of living near work and central attractions. These attributes, especially ease of upkeep, also appeal to empty-nesters and seniors.
Young adults and those aged 50 or older both favour apartment condominiums over other types. For seniors, this preference grows stronger as they age. Apartments are perhaps the easiest type of housing for occupants to maintain, and have the added attraction for older Canadians (at least in buildings equipped with elevators) of minimizing contact with stairs. For aging seniors, problems with vision, frailty, and balance can make climbing stairs a difficult and even dangerous activity.
Canadians of all ages are considerably more likely to choose to own and live in condominiums today than
just a decade ago.
From young to old, all birth cohorts had significantly higher rates of condominium ownership in 2006 than the same age groups five and ten years previously. The rise in age-specific condominium ownership rates, not the aging of baby boomers, accounts for the bulk of recent condominium growth in Canada.
If condominium ownership rates at each age had remained fixed between 1996 and 2006, the growth in condominiums would have been only about a quarter of the growth that actually took place.
The vanguard of the large baby boom generation—the generation born in Canada during the two decades (1946-65) after World War II—is on the verge of becoming senior citizens. The aging of Canada’s population will spur continued growth of condominiums, which more than tripled their share of the home ownership market over the past quarter century.
For young people, condominiums offer low maintenance burdens and the possibility of living near work and central attractions. These attributes, especially ease of upkeep, also appeal to empty-nesters and seniors.
Young adults and those aged 50 or older both favour apartment condominiums over other types. For seniors, this preference grows stronger as they age. Apartments are perhaps the easiest type of housing for occupants to maintain, and have the added attraction for older Canadians (at least in buildings equipped with elevators) of minimizing contact with stairs. For aging seniors, problems with vision, frailty, and balance can make climbing stairs a difficult and even dangerous activity.
Canadians of all ages are considerably more likely to choose to own and live in condominiums today than
just a decade ago.
From young to old, all birth cohorts had significantly higher rates of condominium ownership in 2006 than the same age groups five and ten years previously. The rise in age-specific condominium ownership rates, not the aging of baby boomers, accounts for the bulk of recent condominium growth in Canada.
If condominium ownership rates at each age had remained fixed between 1996 and 2006, the growth in condominiums would have been only about a quarter of the growth that actually took place.
Condos to Provide Good Investment in 2011, Report Says
Excerpt from Money - November 2, 2010 /10:36
Condominiums and greenbelt space will provide among the best investment opportunities in Canadian real estate next year, with the overall outlook remaining positive as long as U.S. woes don’t spill over the border, a report found.
It may also be the time to consider selling low-yielding assets in favour of buying properties in the U.S. as the market there recovers, the report by PricewaterhouseCoopers and the Urban Land Institute found.
Apartments, if any are available, offer the best security, it said. Investors should also look for underperforming retail or commercial space to redevelop as condos as Canadian cities grow vertically, it said.
A separate report by RE/MAX released on Monday found that condos are the number one choice for first time home buyers as the price of a detached home is unaffordable.
Condos represent one in every three homes sold in the Greater Toronto area, it found.
The Canadian market for real estate investment has held up better than the U.S. because of strong bank balance sheets and a sound economy. That said, while many investors say it’s a good time to buy, few are willing to sell at these levels.
The report was based on interviews with 875 of real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the U.S.
Apartments, if any are available, offer the best security, it said. Investors should also look for underperforming retail or commercial space to redevelop as condos as Canadian cities grow vertically, it said.
A separate report by RE/MAX released on Monday found that condos are the number one choice for first time home buyers as the price of a detached home is unaffordable.
Condos represent one in every three homes sold in the Greater Toronto area, it found.
The Canadian market for real estate investment has held up better than the U.S. because of strong bank balance sheets and a sound economy. That said, while many investors say it’s a good time to buy, few are willing to sell at these levels.
The report was based on interviews with 875 of real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the U.S.
Ottawa Population Expected to Increase by over 350,000 by 2036
Excerpt from Ontario Population Report Study Spring 2010
The population of Eastern Ontario is projected to grow 28.7 per cent over the projection period, from 1.71 million to 2.20 million.
Ottawa is projected to grow fastest (43.4 per cent) from 882,000 in 2009 to 1.27 million in 2036. The rest of Eastern Ontario will also grow, but below the provincial average, with Frontenac and Prescott & Russell growing fastest at 26.7 and 23.6 per cent respectively.
The census division of Stormont, Dundas and Glengarry is projected to experience population decline over 2009–2036, with population falling 4,300 or 3.7 per cent as both natural increase and net migration trends are negative.
The population of Eastern Ontario is projected to grow 28.7 per cent over the projection period, from 1.71 million to 2.20 million.
Ottawa is projected to grow fastest (43.4 per cent) from 882,000 in 2009 to 1.27 million in 2036. The rest of Eastern Ontario will also grow, but below the provincial average, with Frontenac and Prescott & Russell growing fastest at 26.7 and 23.6 per cent respectively.
The census division of Stormont, Dundas and Glengarry is projected to experience population decline over 2009–2036, with population falling 4,300 or 3.7 per cent as both natural increase and net migration trends are negative.
Wednesday, November 3, 2010
129 Main Street Condo Launch Back on for November 17th
Don't know what's going on in the background, but just received notification that the launch of 129 Main Street is back on and will be on November 17th 2010
Condo Market Soaring: Report - Prices a Hit With Younger Buyers
Excerpt from The Ottawa Citizen article Nov 2nd 2010
" Condominiums are a hot sector of the Canadian real estate market, particularly for first time homebuyers spooked by high prices, says a report released Monday.A just released report by Re/Max says that affordability, lifestyle, investment opportunities and urban renewal efforts are among the reasons condo sales have spiked over the last year in some Canadian markets
Condo sales in Ottawa are up 11.9 per cent to 2,799 units year-to-date, as of September, and now represent one out of every four homes sold. The average price for Ottawa condos has risen 12.9 per cent to $252,641 in the last year, still more than $100,000 cheaper than the average price of $366,587 for a single-family home, which increased in value 8.2 per cent.
The greatest activity continues to be in condo sales in the $200,000 range in Ottawa, Barrie and London, but condo sales at prices in excess of $ 450,000 in Ottawa have jumped 72 per cent compared with last year.
“ The lifestyle has also gained a foothold with younger, hipper audiences as the definition of home ownership evolves with the changing demographic,” Polzler said. “ Dreams of the small home with a white picket fence are being replaced by the funky loft apartment in proximity to shops, restaurants and entertainment.”
In Ottawa, “condo sales have come of age,’’ said Geoff McGowan, broker of record at Re/Max Affiliates Realty Ltd. in Ottawa. “ For the longest time we didn’t have the uptake on condos, unusual for a city this size. But things have changed now. “Ottawa is the blue-chip stock of North American real estate. It’s the most affordable of any major city,’’ said McGowan.
He added that the stable employment of the public sector helps to guard against downturns.
He cautioned, however, not to expect condo price or sales increases forever.“I see the market returning to sanity.’’
The Re/ Max report said other factors driving the surging condo market include urban redevelopment that favours intensification over urban sprawl, empty nesters seeking low-maintenance retirement properties and investors hoping to sell when prices appreciate, the report said. Re/Max said the “vast majority” of newly built condominiums in Toronto are purchased by long-term investors from Asia and the Middle East, who will often rent them out until they find their desired sales price.
The same is happening in Ottawa, but from investors closer to home. "
Ottawa housing sales drop in October
Excerpt from The Ottawa Citizen - - Nov 3rd 2011
Housing sales were down 12.9 per cent in Ottawa in October, compared with the same month last year.
The Ottawa Real Estate Board said Tuesday that 1,042 residential properties were sold, compared with 1,197 in October, 2009. “Six months ago we were in a strong seller’s market, now we have moved into a more balanced market position,’’ said immediate past-president Rick Snell. “Some properties are still receiving multiple offers but this is happening much less often than was the case in the spring.’’
Housing sales were down 12.9 per cent in Ottawa in October, compared with the same month last year.
The Ottawa Real Estate Board said Tuesday that 1,042 residential properties were sold, compared with 1,197 in October, 2009. “Six months ago we were in a strong seller’s market, now we have moved into a more balanced market position,’’ said immediate past-president Rick Snell. “Some properties are still receiving multiple offers but this is happening much less often than was the case in the spring.’’
Year to date, the number of properties that have been sold has declined two per cent compared to the same period last year, which was a record-setting year.
The average sale price of residential properties, including condos, was $340,719, an increase of 6.8 per cent.
The average condo price was $263,292, up 13.4 per cent.
An average residential property, excluding condos, was $361,560, an increase of five per cent.
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