April 22, 2024
Property Management Tips, RYPM Resources
RYPM
We at Royal York Property Management always keep an eye on any changes in housing regulations that might affect our clients. The implementation of Ontario’s Housing Protection Plan has caused numerous changes to the rental market. This blog post will help you understand how these changes can impact you as a landlord or a tenant, enabling you to adroitly navigate the rental market under the new conditions.
Overview of Ontario’s Housing Protection Plan
What is the Housing Protection Plan?
Ontario’s Housing Protection Plan has been introduced due to an increasing need for affordable housing as well as an effort to more adequately regulate the rental market. This plan incorporates various measures to protect tenants from unfair rent raises or undue evictions and also ensure that landlords can effectively run and maintain wanted properties.
Goals of the Plan
The primary goal of the plan is to establish a more balanced relationship between tenants and landlords and to make the housing situation in the whole province fairer and more secure.
Rent Control Regulations
A major new component that the Housing Protection Plan presents is the strengthening of current rent control. In particular, landlords will be able to increase their rent levels only based on the Consumer Price Index. Their maximum percentage will also be set.
Landlord Licensing
Additionally, the plan suggests that landlord licensing may be established within certain territories. Thus, landlords may be required to meet certain standards to be able to rent out their properties to tenants.
Implications for Tenants Stakeholders and Key Provisions in the Housing Protection Plan
Additional Protections from Eviction
The Housing Protection Plan provides more protections from eviction, requiring landlords to provide a compelling reason for an eviction and longer notice before the eviction process can begin. These require landlords to provide a compelling reason and tenants’ longer notice to vacate should provide increased security for tenants and fewer instances of forced moves.
Right to Return
Right to Return will be Provided Often, the provision allows for a “right to return” for tenants displaced through temporary evacuations for renovations and general upkeep. Tenants have the right to return to their apartment at the prior rental rate, which restricts landlords from exploiting renovations to increase rents.
How will the plan affect lease renewals?
The plan does not change the lease renewal process in itself, but it requires that any rent increase be by the new rent control policy.
Is following the new regulations mandatory?
If they fail to comply with the new guidelines of the Housing Protection Plan, they face heavy penalties like fines and may even be barred from renting their property in the future.
The long-term impact of the Housing Protection Plan
Quality housing and sustainability
An aspect that comes under the Housing Protection Plan of Ontario is the long-term effect on sustainability and housing quality. Though strict standards are implemented for maintenance and safety, this plan encourages better maintenance of the property and a better stock of housing quality. There may, however, be challenges for landlords in the financial aspect of these requirements, and such challenges might even impact their ability to invest further in property improvements.