May 10, 2022
Royal York in The News
A Toronto-based property management company operating across Ontario and Europe, Royal York Property Management, has announced up to a $500 per month supplement for ‘struggling landlords’. Founder and Global Director Nathan Levinson stated that the offer was aimed at alleviating the stress of property investors amidst a worsening economic environment.
Mr. Levinson said, “It has been a very difficult time for most landlords. Property owners are concerned that the interest rates will significantly increase within the next 18 months. This will cause an inevitable drop in the real estate market, with many owners unable to make their mortgage payments.”
Royal York Property Management is offering aid to property owners who are unable to make ends meet. Royal York’s calculations put the rental income for an average one-bedroom condo in Toronto at approximately $2,145 a month. By comparison, the average ‘caring cost’ for a property owner is reckoned to be $2,500 a month.
Starting at $39 a month, Royal York Property Management will personally fund the shortfall up to $500 for as long as they manage the property. The move is aimed at removing financial hardship and also concerns about whether or not landlords will break even on their investment properties.
When asked about the intention behind the initiative, Mr. Levinson responded, “I see it as a means of stimulating the investment market. Property investors can continue to acquire real estate without concerns over breaking even. Our rental guarantee scheme is already unmatched. This guaranteed financing offer simply solidifies our dominance in the market.”
Long term, Mr. Levinson is an advocate for economic reform. He explained, “The Ontario government should allow landlords to serve an N2 Form versus an N1 Form, permitting an increase in rent for properties built before 1991 like it was before the former premier of Ontario, Kathleen Wynne’s announcement at Queen’s Park on April 20, 2017. If this isn’t adjusted, landlords will only be able to increase their rent by 1.2% as per Ontario’s 2022 Rent Increase Guidelines. With what we are seeing, landlords will not be able to keep pace with inflation and rising interest rates. While the cost of living, gas, and mortgage rates have all increased, the rental market remains the same-this calls for change.”
While the scheme is in its infancy, Mr. Levinson reports that the feedback from thousands of clients has been “wholly positive”. He and his team anticipate a large number of applications within the coming weeks.