Where Should I Invest? Real Estate Investing in Canada

Landlord Woes: Navigating Ontario’s Turbulent Rental Market

11 snips
Feb 23, 2024
Hart Togman, co-founder of Rent Panda and a seasoned expert in property management, dives into Ontario's shifting rental market. He discusses the challenges landlords face, including rising costs and stagnant rent increases, and provides data-driven insights into tenant quality and vacancy trends. Hart reveals lucrative opportunities in distressed properties and student rentals, explaining effective strategies for attracting high-quality tenants. Learn how savvy investors are leveraging these changes to enhance profitability and fill vacancies amidst the evolving landscape.
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INSIGHT

2023 Marked A Tipping Point For Landlords

  • 2023 was the worst rental year in five years with slowed rent growth and rising costs for landlords.
  • Vacancy periods increased 16% and rent increases (3.3%) barely kept pace with inflation, squeezing landlord margins.
INSIGHT

Tiered Markets Show Diverging Risks

  • The rental trends affect all Canadian tiers but are worse in tier-two and tier-three markets where new supply outpaced tenant ability to pay.
  • Investors must evaluate properties differently by city tier and be more conservative with projections.
INSIGHT

Official Vacancy Rates Can Mislead

  • CMHC underreports secondary rental stock (single-family, duplexes, triplexes) so official vacancy stats can be misleading.
  • Local landlords and property managers report much higher vacancies (4–6%) in many non-major markets.
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