Seller’s Guide – Page 2 – Buildings for Sale in Toronto

February 10, 2024 Addy Saeed Comments Off Buyer's Guide, Operations, Seller's Guide

The Expert Guide of Pre-Listing Inspections for Multi-Family Properties

Buying property is one of the biggest investments a person will ever make. Before putting your property on the market its recommended to help your prospective buyers feel more confident about purchasing by having their listing inspected first. Presenting a property in its prime condition is a strategic move that can significantly impact its marketability. As a real estate professional deeply familiar with the industry’s details you need to be careful in the use of pre-listing inspections because it can sometimes be an additional problem. But for you to understand more, here’s a list of guides for Pre-listing inspections.

Strategic Preparation

Before a multi-family property hits the market, it’s essential to conduct a thorough inspection to uncover any underlying issues. This proactive approach ensures that potential buyers encounter a property that’s not only visually appealing but also structurally sound.

Instilling Confidence

By addressing any maintenance issues upfront, a pre-listing inspection instills confidence in potential buyers. It demonstrates transparency and integrity on the seller’s part, fostering trust and paving the way for smoother negotiations.

Highlighting Value

A multi-family property with a clean bill of health stands out in a competitive market. Through strategic positioning and marketing, we can highlight the property’s value and showcase its investment potential to prospective buyers.

Navigating Regulations

Navigating the regulatory landscape in Canada can be complex, especially in the realm of multi-family properties. A pre-listing inspection ensures compliance with local building codes and regulations, mitigating risks and streamlining the transaction process.

Enhancing Efficiency

By addressing issues proactively, a pre-listing inspection minimizes the likelihood of surprises during the transaction process. This efficiency not only saves time but also reduces stress for both sellers and buyers, leading to a more positive overall experience.

In the competitive landscape of Canadian real estate, a pre-listing inspection for multi-family properties is a strategic move that can make all the difference. It’s not just about meeting expectations; it’s about exceeding them and positioning your property for success in the market. With a meticulous pre-listing inspection, we can ensure that your property stands out and shines in the market.

If you would like more information about multi-family real estate investing or have any questions, please make sure to post a comment below or contact us.

December 13, 2023 Addy Saeed Comments Off Buyer's Guide, Operations, Seller's Guide

Navigating the Ontario Real Estate Landscape: A Broker’s Guide to Strategic Market Research

Are you contemplating the sale of your commercial property or investment building in Ontario, Canada? Before embarking on this pivotal journey, we must delve into the intricate details of our local market conditions and trends. Beyond the traditional “For Sale” sign, the key to a successful deal lies in having a meticulously crafted roadmap that guides you through the nuances of Ontario’s real estate landscape.

As a seasoned real estate broker practicing in Ontario, I understand the significance of local market research. It’s not merely about selling a property but strategically positioning it in a competitive market. Let’s explore strategic approaches to research your local market conditions and trends:

1. Realtor Consultation: Unlocking Ontario’s Real Estate Insights

In the dynamic world of Ontario’s commercial and investment real estate, consulting with a knowledgeable Realtor is akin to having access to a treasure trove of strategic insights. Our province’s real estate market has unique dynamics, and a seasoned Realtor becomes your trusted guide through the intricacies of commercial property transactions.

Investors in Ontario benefit significantly from Realtor consultations. They gain access to information crucial for navigating the nuances of commercial property transactions, allowing them to identify the most opportune moments for investment.

2. Online Real Estate Platforms: Ontario’s Virtual Hub for Property Data

Online platforms, such as local Multiple Listing Services (MLS), Costar, Altus, ICIWorld and prominent real estate websites, serve as Ontario’s virtual hub for gathering essential information on commercial properties. These platforms offer a comprehensive overview of recent property sales, current listings, and market trends specific to our province.

Leveraging these platforms provides investors with information and strategic advantage, enabling well-informed decisions that contribute to success in Ontario’s dynamic real estate market.

3. Attend Ontario Real Estate Events: Networking in the Heart of the Market

Attending local real estate events in Ontario is like stepping into an exclusive networking opportunity focused on our unique market. These events bring together professionals and investors to discuss trends and opportunities in the commercial property sector within the province.

Participating in these events provides firsthand insights that go beyond online information. It’s an opportunity to meet and connect with local real estate experts and fellow investors, gaining valuable knowledge that can lead to successful investments in Ontario.

4. Review Ontario Housing Reports: Equipping Yourself with Provincial Insights

Reviewing local housing reports specific to Ontario equips investors with crucial information about the demand for different types of buildings, emerging investment opportunities, and the market’s overall health. It’s akin to having a strategic playbook tailored to Ontario’s real estate landscape, guiding investors through the complexities of commercial ventures.

5. Community Surveys and Feedback: Tapping into Ontario’s Collective Wisdom

Engaging in community surveys and seeking feedback becomes a strategic tool for understanding the intricate dynamics of Ontario’s buildings and investments. This process offers valuable insights into preferences, needs, and potential opportunities in the commercial property landscape. It’s like tapping into the collective wisdom of local stakeholders, ensuring that commercial properties align with the aspirations and requirements of the Ontario community.

In conclusion, successfully selling a commercial property or investment building in Ontario demands a nuanced understanding of local market conditions and trends. As a real estate broker practicing in this vibrant province, I emphasize the need for a personalized roadmap rooted in detailed research.

Leveraging Realtor consultations for strategic insights, exploring online real estate platforms for a comprehensive market overview, and attending local real estate events for exclusive insights provide investors and property owners in Ontario with essential tools. Reviewing local housing reports and soliciting community surveys and feedback contribute to a holistic approach, ensuring that commercial properties stand out and thrive in the competitive Ontario landscape.

Ready to navigate the complexities of Ontario’s commercial real estate market? Contact me for a personalized consultation, and let’s shape your success story together. Your strategic move begins here in the heart of Ontario’s real estate landscape.

October 25, 2023 Addy Saeed Comments Off Operations, Seller's Guide

Low Cap Rates and Rent Control in Ontario

When it comes to real estate investments in Ontario, one of the key metrics that investors often consider is the capitalization rate, commonly referred to as the cap rate. This metric is crucial in evaluating the potential return on investment for a particular property. A low cap rate can be a topic of concern for investors, as it implies a different risk-return profile for the investment. In the context of Ontario real estate, low cap rates generally indicate that the property’s income is insufficient in relation to its market value. In other words, it implies that the property is priced high compared to the income it generates. This can be attributed to several factors, such as high demand for real estate, low supply, and low interest rates, which push property values up and subsequently reduce the cap rates.

Ontario has rent control in the form of the Residential Tenancies Act, and it also impacts market cap rates for properties. These rules affect both landlords and tenants and have a substantial impact on the rental market. Rent control is a government policy that regulates how much a landlord can increase the rent for a residential property. The primary goal of rent control is to protect tenants from unreasonable rent hikes, ensuring that housing remains affordable and preventing widespread displacement due to excessive rental increases.

In Ontario, rent control is governed by the Residential Tenancies Act. Under these rules, rent control applies to most private rental units, including apartments, single and semi-detached houses, and units in residential complexes. However, not all rental properties are subject to rent control. For instance:

New Rental Units
Newly built units or rental properties that underwent significant renovations on or after November 15, 2018, are not subject to rent control.

Social and Affordable Housing
Rent control does not apply to housing units that receive government subsidies or are part of affordable housing programs.

Landlords in Ontario are subject to rent control regulations. This means they can’t always charge the current market rent if it’s rising faster than what the government allows for rent increases. In such cases, the legal rent they can charge might be lower than what the property could actually fetch in the market. This unutilized potential rent remains untapped until the tenant moves out, which can affect the property’s cap rate negatively/lower. Property sellers can use this lower rent as leverage to justify a lower cap rate, showcasing the gap between the current rent and the market rate. In a seller’s market, where property inventory is limited, buyers might be willing to accept a slightly lower cap rate to secure a property with untapped income potential. This dynamic highlights the importance of understanding the local rental market and its impact on property valuation in Ontario.

In the dynamic world of Ontario real estate, being aware of factors like capitalization rates and rent control is essential for both investors and tenants. Low cap rates can raise concerns, signalling property pricing is out of sync with income generation due to various market forces. On the other hand, rent control regulations are a vital aspect of maintaining affordable housing for tenants and ensuring that rent increases are fair and regulated. Whether you’re an investor looking for the right opportunity or a tenant seeking protection, understanding these elements is crucial for a balanced and informed approach to the Ontario real estate landscape. It’s all about finding the equilibrium where investors can thrive, and tenants can access affordable housing. So, whether you’re crunching the numbers as a property owner or looking for a rental home, these factors play a significant role in shaping the Ontario real estate experience.

If you would like more information about multi-family real estate investing or have any questions, please make sure to post a comment below or contact us.

October 25, 2023 Addy Saeed Comments Off Buyer's Guide, Operations, Seller's Guide

Capital Expenditures? What are they and How to calculate them?

When it comes to real estate investment in Canada, there’s a financial concept you need to grasp, and it is called “Capital Expenditures,” often referred to as “CapEx.” Think of CapEx as the expenses you’ll encounter to keep your property in good shape and improve its value over time. Understanding CapEx is vital. In this blog, we will break down Capital Expenditures, what they cover, and how to calculate them. By the end, you’ll know how to make better financial decisions, protect your investments, and ensure your real estate portfolio thrives for the long haul.

Capital Expenditures, often referred to as “CapEx,” represent the financial investments allocated to obtain, upgrade, or maintain a property, including equipment acquisition. These expenditures are categorized as CapEx if they involve new purchases or serve to extend the property’s lifespan, such as repairing the roof, installing a furnace, or repainting the building. Accurate assessment and consideration of both current and future CapEx are critical when determining a property’s value. Property owners must also incorporate CapEx into their rent calculations. Failing to account for or miscalculate CapEx could result in setting rent rates too low, leading to financial losses and negative cash flows for property owners.

Here are some of the most common capital expenditures in real estate:

New HVAC equipment
Major appliances
A complete overhaul of the plumbing
A complete overhaul of the electrical work
Bathroom remodels
Kitchen remodels
New roofs
New windows
New flooring
Balcony repairs
Siding
Paving or repaving a parking lot
Waterproofing of building or envelope
Additions to the property

Minor repairs and maintenance are typically not classified as capital expenses. For instance, replacing an entire roof is a capital expense, whereas repairing a small roof section falls into regular operating costs. The new roof prolongs the property’s lifespan, while minor repairs merely maintain its current usefulness. Similarly, purchasing a new furnace is a capital expense, while replacing furnace components is standard repair work. Upgrading an electrical panel is likely a capital expense, but replacing a light fixture is not.

Calculating Capital Expenditures is very easy. As an investor, it’s your responsibility to estimate the replacement timeline for major items. To create a capital expenditure budget, list these big-ticket items and their expected lifespans. Additionally, assess the status of each item in its useful life. This comprehensive list helps you plan for each expenditure. Once you’ve identified each expenditure, you can now use this simple formula to get the Capital Expenditure.

Let me give you a better example; for instance, a new roof costs approximately $50,000 and typically lasts 20 years. To calculate the annual CapEx, divide $50,000 (total replacement cost) by 20 years (expected lifespan) to get $2500 per year for roof-related expenditures. Apply this method to all significant maintenance items to estimate your yearly spending. If needed, break these expenses into monthly budgets for greater convenience.

Since this money isn’t being spent yearly, it sits in a reserve account and can be invested in vehicles such as GIC, where your capital is protected and income guaranteed. This way, you can also use compounding interest to minimize your cash outlay and maximize your IRR for every dollar within the investment.

In conclusion, Capital expenditures are among the largest, yet necessary expenses tied to investment properties. It’s true; you must invest money to reap rewards, and CapEx is no different. You can’t avoid them, so it’s wise to budget for them. Successfully managing a real estate business means not only accounting for these expenses but also budgeting for them wisely.

October 20, 2023 Addy Saeed Comments Off Operations, Seller's Guide

What are Rental Surveys and Why are they important?

A Rental Survey can help you unlock the secrets to real estate success. Whether you’re in the process of buying a property or managing an existing one, these surveys are a must-have tool. It provides insights into your area’s current rental rates, trends, and occupancy levels. Plus, you’ll discover what attracts tenants the most, helping you boost your property’s value and returns. In a nutshell, market rental surveys are your key to maximizing your investment property’s potential.

These surveys are like treasure maps for real estate investors. It shows you what similar properties are charging for rent in your area and how your property stacks up against the competition. It can also help you establish the value of a property being considered for purchase and gauge the ability to increase your return. In short, a market rental survey will help you maximize your investment property’s value.

It is a valuable tool that holds the answers to your questions. Are your rents on point, too low, or have room for an increase? Curious about what your competitors are up to? A rental survey has your back. It’s not just about the current state of your property; it’s a crystal ball into the future of rental rates. Without these insights, your investment strategy is like navigating without a map—a risky venture. But this takes time. Yet, the rewards are substantial. You get a comprehensive understanding of your property’s standing, identify potential areas for improvement, and strategize on maximizing its value. It’s like having a powerful tool at your disposal, guiding you through the twists and turns of your real estate journey. And yes, while it requires quarterly updates, the investment in time is a small price to pay for staying ahead in the game.

October 18, 2023 Addy Saeed Comments Off Profitability, Seller's Guide

Effects of Interest Rate on Investing a Multi-Family Property

In the ever-changing realm of real estate investing, grasping the influence of interest rates is vital, particularly for multi-family properties. With solid demand in the multifamily market amid economic uncertainty, it’s crucial to comprehend the short-term and long-term consequences of interest rate hikes. Let’s first explore the concept of inflation to get a clearer picture of how an interest rate hike affects the multifamily market. Inflation is the gradual increase in the overall price level of goods and services within an economy over time. It erodes the purchasing power of money, leading to increased expenses for investors and developers. The Bank of Canada employs interest rates as a tool to manage inflation. When interest rates go up, the BoC’s goal is to reduce consumer spending and borrowing, thereby slowing economic growth, and curbing inflationary pressures. These rates can influence the overall profitability, financing options, and investment strategies for multifamily properties.

Negative Impact of rising interest rates on the multifamily investment landscape

Costly Debt Dynamics

When interest rates rise, debt becomes pricier, influencing investor returns and property prices. This shift in market dynamics might lead to decreased transaction volume or investors opting to hold onto properties, awaiting a more favorable seller’s market.

Variable-Rate Debt Dilemma

Investors with variable-rate debt may face challenges during resets. A property generating positive cash flow at 3% interest may not be sustainable at 6%. This could lead to negative cash flow, potentially resulting in loan defaults and foreclosures as operational reserves run dry or loan covenants are breached.

Job Market Jitters

Rising interest rates often correlate with job layoffs. According to a recent PwC survey, half of industry executives are reducing headcount or planning to, with 52% implementing hiring freezes. In the multifamily market, anticipating slower growth, investors and property managers might trim staff in response to operational challenges. While a short-term fix, job losses can trigger late payments and collection costs, further impacting property profitability.

However, while high-interest rates are generally perceived as a challenge in the realm of investments, there are scenarios where they can bring about positive impacts in multifamily real estate:

Enhanced Returns for Lenders

Higher interest rates mean that lenders, such as banks or financial institutions, earn more from the interest charged on loans. This can make lending to multifamily property investors more attractive, potentially leading to increased loan availability.

Stability in Market Conditions

High-interest rates can contribute to a more stable real estate market. When interest rates are high, property values may be less prone to rapid and unpredictable fluctuations. This stability can be beneficial for long-term investors looking for predictability in their investment returns.

Reduced Speculative Activity

High-interest rates may discourage speculative investment behavior, where investors buy properties with the sole intent of selling them quickly for a profit. This reduction in speculative activity can contribute to a more sustainable and balanced market, preventing the formation of property bubbles that can lead to market crashes.

Discourages Overleveraging

High-interest rates act as a natural deterrent against excessive borrowing or overleveraging. This can be positive for the overall health of the multifamily investment sector, as it encourages investors to use a more cautious approach in financing their acquisitions, reducing the risk of financial instability.

Attractive Yields for Fixed-Income Investors

High-interest rates make real estate investments more appealing to fixed-income investors seeking stable and attractive yields. Multifamily properties, known for their reliable cash flow, become a more attractive option compared to other investment vehicles in a high-interest-rate environment.

Potential for Bargain Purchases

High-interest-rate environments may lead to a decline in property prices as demand softens. For investors with sufficient capital and a long-term perspective, this presents an opportunity to acquire properties at more favorable prices, with the potential for significant appreciation when interest rates eventually decrease.

In conclusion, high interest rates in multifamily investments can have some silver linings. They might bring stability to the market, making property values less jumpy. Also, they discourage risky behaviors like buying and selling properties quickly, making the market more reliable. High rates could mean fewer people taking big loans, preventing financial troubles down the road. For those looking to invest for the long haul, high rates might mean a chance to buy properties at lower prices. Remember, while high rates pose challenges, they can also create opportunities for savvy investors willing to navigate the market wisely.

If you’re interested in finding out more about investing in Multi-family properties, please make sure to leave a comment or contact us

October 12, 2023 Addy Saeed Comments Off Operations, Seller's Guide

What is turnover? How do you capture the cost?

According to the National Apartment Association, Turnover measures how many apartment units had residents move out during a 12-month period, shown as a percentage of the total rented units in the building. Essentially, it indicates the percentage of tenants who choose not to renew their leases.

For property managers and landlords, the tenant turnover rate is a crucial metric for planning their budget in advance. You can easily find your turnover rate by dividing the number of tenants who moved out in a year by the total number of tenants you had during that time.

This rate helps property managers estimate how many leases are likely to change each year, allowing them to plan and budget for renovations. It also gives insights into potential rent increases, helping them make informed decisions about their property’s financial outlook.

For example, A residential building has a total of 120 units and all occupied throughout the year of 2022 and the number of moveouts at the end of the year is 20. We simply calculate Turnover Rate using the illustration above. The calculation resulted with a 16% Turnover Rate.

Practical Steps for Long-Term Tenancies to Reduce Turnover:

If you’re grappling with a high turnover rate and eager to cut down on associated costs, consider implementing these effective strategies. Each approach has proven successful, and depending on your property type, one may be more suitable for your situation than the others.

Rigorous Tenant Screening:

Enhance your tenant screening process to minimize turnover. Engage a trustworthy tenant screening service to guide you in identifying ideal applicants. Opting for tenants with a track record of property upkeep can significantly decrease repair expenses. Additionally, selecting tenants with a propensity for longer stays contributes to lowering turnover rates and associated costs.

Enhance Lease Agreements:

Acknowledge that turnover is inevitable, but you can mitigate its financial impact by refining your lease agreements. Clearly outline terms related to move-out cleaning fees, security deposits, damages, and other potential expenses. Informing tenants about these details empowers them to return the property in good condition, ultimately saving you money during turnovers.

Cultivate Relationships and Encourage Renewals:

Building positive relationships with tenants fosters a sense of home, increasing the likelihood they’ll want to stay longer. Establish trust by demonstrating a genuine concern for their well-being. Keep open lines of communication about lease renewals, incorporating regular conversations into your management process. Consider offering reduced administrative rates for lease renewals to incentivize tenants to stay for extended periods.

By combining these strategies, you can create a tenant-centric approach that not only reduces turnover rates but also enhances the overall stability and profitability of your property management endeavors.

September 30, 2023 Addy Saeed Comments Off Buyer's Guide, Operations, Seller's Guide

What is ESG and why is it important to Investors?

ESG stands for Environmental, Social, and Governance. It refers to a set of standards used by investors and organizations to evaluate a company’s performance and behavior in various sustainability and ethical issues.

In recent years, there has been a notable shift in the investment landscape as environmental, social, and governance (ESG) factors have gained prominence. This shift has extended beyond traditional sectors and is now significantly impacting the world of commercial real estate investments. Investors, stakeholders, and even governments are placing increased importance on sustainable and responsible business practices, driving the integration of ESG considerations into various industries, including the lucrative realm of commercial real estate.

The 3 aspects of ESG are:

Environmental (E): This aspect focuses on a company’s impact on the environment. It involves assessing how the company manages its use of natural resources, its carbon footprint, its commitment to reducing greenhouse gas emissions, waste management practices, and adherence to environmental regulations. Additionally, it considers the company’s efforts towards sustainability and the development of environmentally friendly products and services.

Social (S): The social aspect looks at a company’s treatment of its employees, customers, suppliers, and communities where it operates. It evaluates factors such as labor practices, employee relations, diversity and inclusion, customer satisfaction, community engagement, and philanthropy. Companies that prioritize fair labor practices and have a positive social impact often score well in this category.

Governance (G): Governance refers to the company’s internal policies, leadership structure, and adherence to ethical standards. This includes evaluating the independence and expertise of the board of directors, executive compensation, transparency in financial reporting, and measures to prevent corruption and unethical practices.

ESG factors have gained significant importance for investors due to several reasons:

Risk management: ESG factors can help investors identify and mitigate potential risks associated with their investments. Environmental risks, such as climate change impacts or regulatory changes, can affect the value and longevity of a property. Social risks, like community relations or labor practices, can impact a property’s reputation and operational stability. Strong governance practices help ensure proper management and transparency, reducing the risk of fraud or mismanagement.

Long-term performance: Commercial real estate investments are often long-term endeavors. Considering ESG factors ensures that properties are built, managed, and operated with an eye toward long-term sustainability. This can lead to reduced operational costs, increased tenant satisfaction, and enhanced property value over time.

Market Demand: ESG considerations are becoming increasingly important to tenants, investors, and regulators. Investors who prioritize ESG factors are likely to attract more socially conscious tenants and may also experience increased demand from institutional investors who incorporate ESG criteria into their investment decisions.

Regulatory Compliance: Many regions and jurisdictions are implementing stricter environmental regulations and building codes. Investors who account for ESG factors are better positioned to comply with these regulations, avoiding potential fines or operational disruptions.

Stakeholder relations: Investors that prioritize ESG factors are likely to have better relations with their stakeholders, including customers, employees, suppliers, and regulators. This can lead to enhanced brand reputation and increased customer loyalty.

Enhanced Reputation: Incorporating ESG principles can improve a real estate investor’s reputation. Demonstrating commitment to environmental and social responsibility can lead to positive public relations and better community relationships.

Future-Proofing Investments: By considering ESG factors, investors can future-proof their investments against changing market dynamics. As sustainability practices become more mainstream, properties that lag behind in ESG performance could face lower demand and potentially depreciating value.

As a result of these benefits, ESG considerations have become an essential part of investment strategies for many investors who seek not only financial returns but also sustainable and socially responsible outcomes.

April 28, 2017 Addy Saeed Comments Off Buyer's Guide, Operations, Seller's Guide

16 New rules to curb the Toronto housing crisis

The province made an announcement last week showcasing 16 measures to help real estate buyers and sellers and to help create more supply for the region. I’ve broken down the rules more in the video above for your review. Here are the sixteen rules that are introduced:

Actions to Address Demand for Housing:

Introducing legislation that would, if passed, implement a new 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations. Ontario’s economy benefits enormously from newcomers who decide to make the province home. The NRST would help to address unsustainable demand in this region and make housing more available and affordable, while ensuring Ontario continues to be a place that welcomes all new residents. The proposed tax would apply to transfers of land that contain at least one and not more than six single family residences. “Single family residences” include, for example, detached and semi-detached homes, townhomes and condominiums. The NRST would not apply to transfers of other types of land including multi-residential rental apartment buildings, agricultural land or commercial/industrial land. The NRST would be effective as of April 21, 2017, upon the enactment of the amending legislation. Refugees and nominees under the Ontario Immigrant Nominee Program would not be subject to the NRST. Subject to eligibility requirements, a rebate would be available for those who subsequently attain citizenship or permanent resident status as a well as foreign nationals working in Ontario and international students. See technical bulletin for further information.
Actions to Protect Renters
Expanding rent control to all private rental units in Ontario, including those built after 1991. This will ensure increases in rental costs can only rise at the rate posted in the annual provincial rent increase guideline. Over the past ten years, the annual rent increase guideline has averaged two per cent. The increase is capped at a maximum of 2.5 per cent. Under these changes, landlords would still be able to apply vacancy decontrol and seek above guideline increases where permitted. Legislation will be introduced that, if passed, will enact this change effective April 20.
The government will introduce legislation that would, if passed, strengthen the Residential Tenancies Act to further protect tenants and ensure predictability for landlords. This will include developing a standard lease with explanatory information available in multiple languages, tightening provisions for “landlord’s own use” evictions, and ensuring that tenants are adequately compensated if asked to vacate under this rule; prohibiting above-guideline increases where elevator work orders have not been completed; and making technical changes at the Landlord-Tenant Board to make the process fairer and easier for renters and landlords. These changes would apply to the entire province.
Actions to Increase Housing Supply
Establishing a program to leverage the value of surplus provincial land assets across the province to develop a mix of market housing and new, permanent, sustainable and affordable housing supply. Potential sites under consideration for a pilot project include the West Don Lands, 27 Grosvenor/26 Grenville Streets in Toronto, and other sites in the province. This builds on an agreement reached previously with the City of Toronto to ensure a minimum of 20 per cent of residential units within the West Don Lands are available for affordable rental, with an additional 5 per cent of units for affordable ownership.
Introducing legislation that would, if passed, empower the City of Toronto, and potentially other interested municipalities, to introduce a vacant homes property tax to encourage property owners to sell unoccupied units or rent them out, to address concerns about residential units potentially being left vacant by speculators.
Ensuring that property tax for new multi-residential apartment buildings is charged at a similar rate as other residential properties. This will encourage developers to build more new purpose-built rental housing and will apply to the entire province.
Introducing a targeted $125-million, five-year program to further encourage the construction of new rental apartment buildings by rebating a portion of development charges. Working with municipalities, the government would target projects in those communities that are most in need of new purpose-built rental housing.
Providing municipalities with the flexibility to use property tax tools to help unlock development opportunities. For example, municipalities could be permitted to impose a higher tax on vacant land that has been approved for new housing.
Creating a new Housing Supply Team with dedicated provincial employees to identify barriers to specific housing development projects and work with developers and municipalities to find solutions. As well, a multi-ministry working group will be established to work with the development industry and municipalities to identify opportunities to streamline the development approvals process.
Other Actions to Protect Homebuyers and Increase Information Sharing
The province will work to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market such as “paper flipping,” a practice that includes entering into a contractual agreement to buy a residential unit and assigning it to another person prior to closing.
Working with the real estate profession and consumers, the province is committing to review the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions. This includes practices such as double ending. The government will modernize its rules, strengthen professionalism and improve the home-buying experience with a goal to make Ontario a leader in real estate standards.
Establishing a housing advisory group which will meet quarterly to provide the government with ongoing advice about the state of the housing market and discuss the impact of the measures in the Fair Housing Plan and any additional steps that are needed. The group will have a diverse range of expertise, including economists, academics, developers, community groups and the real estate sector.
Educating consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real estate transaction.
Partnering with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.
Making elevators in Ontario buildings more reliable by establishing timelines for elevator repair in consultation with the sector and the Technical Standards & Safety Authority (TSSA).
Working with municipalities to better reflect the needs of a growing Greater Golden Horseshoe through an updated Growth Plan. New provisions will include requiring that municipalities consider the appropriate range of unit sizes in higher density residential buildings to accommodate a diverse range of household sizes and incomes. This will help support the goals of creating complete communities that are vibrant, transit-supportive and economically competitive, while doing more to address climate change, protect the region’s natural heritage and prevent the loss of irreplaceable farmland. As part of the implementation of the Growth Plan for the Greater Golden Horseshoe, 2006, enough land was set aside in municipal official plans to accommodate forecasted growth to at least 2031. Based on discussions with municipalities across the region, the government is confident that there is enough serviced land to meet the Provincial Policy Statement requirement for a three year supply of residential units. The Greenbelt provides important protection of natural heritage and farmland, and neither the area of the Greenbelt or the rules about what can occur inside of it will be weakened. The upcoming Growth Plan will promote intensification around existing and planned transit stations and will promote higher densities in the suburbs to support transit.

March 30, 2017 Addy Saeed Comments Off Buyer's Guide, Operations, Seller's Guide

Toronto’s new by-law for Apartment Buildings

The city of Toronto introduced new by-laws yesterday for apartment buildings where apartment buildings with more than 10 units will be required to be registered and licensed with the city of Toronto. Here are the main details of the by-law for your review:

Yearly registration of rental buildings with 3 or more storey and 10 or more units
Annual registration includes details regarding building owner and manager as well as their contact information
Annual registration fee of $10.60 per unit
Each Building must have tenant request process
Urgent requests require a response within 24 hours
Non-urgent requests require a response within 7 days
Pest Management Program and details are required
New set of “administrative cost recovery’ fees including a flat fee of $1800 if a full building audit is required.

While this is just another cash grab for the city, there are some good services that will help neighbors get rid of absent landlords and slumlord too. I don’t like the fact that this is all going to cost the owners more money as the city is downloading all their responsibility onto the owner and tenants.

What the politician writing these laws are failing to realize that the deterioration of our rental assets is in part because we don’t have enough units available to be rented. The units that are in good condition are also in higher demand and some owners just can’t justify spending extra money due to the rents that are being collected. Further, there haven’t been many new buildings added to our rental pool causing lower than 1% vacancy in the city and having schemes such as these implemented allow the politicians to pander to the tenant base for votes.

Click for complete ruling

Category: Seller’s Guide