What Landlords Think About Municipal Renoviction laws: Feedback from Openroom's Community

Author
Weiting Bollu
| Published at
November 20, 2024
| Updated on
November 20, 2024
Author
Weiting Bollu
Published at
November 20, 2024
Updated on
November 20, 2024
Openroom readers weigh in municipal renoviction laws

KEY TAKEAWAYS

Every other Sunday, Openroom subscribers receive a newsletter straight from me, packed with the latest rental market news, insider tips, and updates on what’s happening at Openroom! Join Openroom’s newsletter. 

At the end of every newsletter, I ask readers to share their opinions and experiences on issues that impact small landlords across the country.

In September’s newsletter, I asked readers, “ What do you think of municipalities implementing Renoviction laws?”

Straight from Openroom’s community

Here’s what our readers had to say, verbatim!

More fees, another level of bureaucrats, more lawyers, NO real changes to the RTA, not addressing issues that cause or restrict landlords from getting restricted increases closer to market or real inflation...what about CCA and not including annual inflation rates to CCA to the benefit of all long term investors and taxpayers?

Laws continue to make it burdensome, emotionally and financially, for mom and pop small landlords. All the while, there are no new laws to protect small Lls from delinquent tenants, in fact that part of the conversation is entirely missing . As a result, small Lls, with limited means comparable to Big corporations, are intimated by the gross lack of protection. All citizens deserve justice and protection. And the irony in skewing these laws and making them so tenant centric, is that less small Lls will want to continue to rent. All the while, new builds of large corporations where rent control does not apply, increase and give tenants undesirable rental options. The real culprit is rent control (it does not keep up with inflation).

There is an obvious need to put the law into place due to unethical or dishonest landlords but that it's a hefty fee, which they have to pay on top of the needed renovations. My suggestion would be to have the majority of the fee refunded to the landlord after a mandatory inspection to see that all work is done and the tenant has returned (if they choose to return) and the landlord signs a certain form verifying all info.

Well I'm a small LL with 1 bldg . A triplex. Last year when my tenant moved out it cost me 4 month's rent at $800 per month to renovate. The renovation costs were 10,000. It's a 1 BDRM unit 750 sq ft. My rent is now $1200 per month to compensate me over the long term to recoup my loss to renovate. Well the tenants that moved in within 1 year have destroyed the unit. They both work. One is a registered nurse and the other is a physiotherapy student. I bet my tenants well. To my surprise the unit is now destroyed. Shortly after moving in they got a Burmese Mountain Dog/ Labrador mix puppy. Not only is the unit destroyed, so is my front lawn due to dog feces/urine as well as dirty carpets & floors in the common hall of the triplex leading to the laundry room. Now more lost revenue for coin op laundry as upstairs tenants refuse to use it due to the dog. So I'm left with more Reno costs going forward again. Nothing but a money losing stint with zero door value. If this by law comes into place it is the last straw. I will remove my 2 units from the rental market & switch to AirBNB. As soon as they move out this is my plan. I'm done with the politics & political games to benefit the power players while leaving me bankrupt & broke due to the negligence of society.

Landlords need support, not more laws that continue to support and enable tenants to stay in place when they are not paying.

I want to rent my property but am scared to do so because of onesided laws.

It will give serial and professional renters more opportunity to get away with non payment of rent.

Abolish rent control and bad faith Evictions wouldn't exist

Like don't tenants have enough rights already, it's only going to hurt the small landlord more!

Maybe exclude small landlords it's mostly the big corps that are The culprits

I understand why these laws are needed. Too many bad landlords out to gouge the customers. Unfortunately it has more effects on smaller landlords, by making legitimate renovations more costly.

They have no right to tell landlord what to do - my property I do what I want to with it period

A main reason why landlords revert to renovictions is the unrealistic rent controls imposed on them. Address the unfair rent controls and then a renoviction law may not be required.

If someone is spending money renovating- Enough that it requires a tenant to move out because it's so extensive. Having the tenant move back in at the same monthly cost is completely illogical.

It's just going to encourage landlords to not renovate their space and let the space fall into disrepair

It's more restrictions on the small landlord. It's become that the tenant has more rights than the lawful owner.

I have never used this tactic … I wait and renovate the unit when vacant.

I'm mixed and wondering why municipalities have to get involved when the law already exists at the LTB level and is enforceable thru the same system the landlords are forced to use, the tribunals.

Maybe the municipalities should set a bylaw to make sure rent payments are followed as well? Makes things transparent and more importantly will reduce the narrative that landlords are abusing tenants rights.

Hopefully a law will be put in place that will similarly expose the abusive tenant who squats. Therefore both narratives will improve! Good initiative with rental ledger

I understand not kicking someone out to up the rent, but if the tenant misses more than one month rent, they should be evicted.

Automatic eviction if rent is not paid is the answer.

Landlords need to understand that tenants are to be respected and allowed to move back in and the landlord can charge an increase of rent approved by the LTB for the renovation.

I believe that LTB should have a provincial policy and leave local municipalities out of it.

There is legislation already and would suggest that municipalities put their energies into pressuring the Premier and whatever department accountable for the LTB to get proper funding and resources to fulfill their current duties.

Municipalities should allow LL's to increase rent. It should be a free market. Whenever a government gets involved we end up with a crisis on our hands.

When governments are not involved the market has a way of resolving itself.

I agree that faulty landlords need to be held accountable. However for small landlords this is yet another tax/cost to run a small business.

I am a small landlord. If I have a bad tenant, there are very few options available. As I am in Hamilton, I can't do renovictions. I think there should be some laws that are pro landlords.

Municipalities have more of an interest in overseeing this issue than the province does. More generally, however, it's just another screw to be tightened against those who are already providing housing rather than helping to build more housing.

Another law against the small scale landlord. I reject!

The gov would be better tasked to ensure the LTB can quickly resolve cases of tenants who are refusing to pay rent instead of devoting resources to yet another thing that's going to jam up the system and and make small landlords even less secure that they will get the support they need when renters aren't acting in good faith.

If my mortgage was even close to being paid off, I would never rent in Ontario. The risks are too high.

The current RTA and Permit process covers this already. It is not an issue of needing more laws, but an issue of the current laws not being enforced.

Tenants typically don't look after the apartment so that every closet, kitchen, bathroom deteriorates faster than if it was owner occupied.

Places DO need renovating to maintain value. If only landlords had recourse to insist a place is kept clean and tenants to keep the landlord informed of issues. They frequently change a fresh clean space into a hovel.

The reason I don't agree with it is because it assumes guilt before innocence on behalf of the landlord and it build in more costs and delays which only translates to more costs needing to be downloaded to the tenant.

If they have rent controlled units it increases the likelihood of slum properties and it is becoming more likely because the cost of today's renovations, property taxes and interest rates make most renovations unaffordable or bad investment without an increase in the rents recieved.

Also there is little to no discussion about tenants who choose not to come back and they seemed to be getting grouped in with being manipulated or prevented from returning.

Any policy that increases cost based on bad actors only continues to prevent good landlords from coming into the market rather than keeping the bad ones out.

Housing is under provincial jurisdiction so municipalities do not need to pass bylaws respecting renovictions. Province should amend legislation.

Ensure property owners have a plan in place… contractor deposits paid…

Rent control is the problem

The renovictions are covered by the Residential Tenancies Act (RTA) and that there's no need for a bylaw. LTB needs to improve their operations.

Landlords already have no way to help themselves against a bad tenant. This is another avenue gone for landlords

We are creating slums. We are creating property values on the decline for resale in neighborhoods where other houses are going up in value, rental houses are going down.

New investors cannot sell a house for the proper price with tenants who are rent controlled and will never move.

Rent controls never work. They are bad for the local economy, bad for the investor, and actually bad for the tenant because they live in a false economy.

I agree with you that the problem is too low of government mandated rental increases. If we had 3 to 5 years of 3.5% increases it would help reduce the number of reno evictions. This action would help tenants and landlords....

If I invest in business, I should be able to increase price of service provided

This is probably reactive as you stated occurring due to long wait times for tenants that are in arrears on rent. Landlord Tenant Board needs to fix their waiting times immediately. This is the only fix.

More government engagement will only destroy the market. Less red tape will open door to more investors and create more options for tenants.

The Residential Tenancies Act has a process if Tenants feel wronged by the Landlord's N13, eg a bad faith application

The problem is that there are a lot of people who are paying less than market rents - this is not the landlord's fault. As landlords we are subject to costs that go up but are limited in how much the rent can be raised. Most times it is way less than our costs. The landlord is a business, we are not social services and should not have to subsidize someone's life. That is what the government is supposed to do!! - with our tax dollars.

Too much government interference

Rent control needs to come back in effect to stop the bad landlords. There needs to be faster evictions for the bad tenants e.g. non-payment of rent.

More affordable housing needs to be made available. If someone fails to show up for their hearing there should be an immediate order to pay or leave or the sheriff comes.

Credit bureau for everyone non-pay judgement is great.

Too much bureaucracy. Punishes small landlords

Normally if you treat your landlord correctly it will be a good long lasting relationship. There are bad land lords and bad tenants. They both cost the system a lot of money and distrust.

Investors need a fair return otherwise you get the mess we are in.

While I don't support renovictions, I understand why some (reputable) landlords need to do this. For long-term tenants who are paying significantly less than the market value rent, small Landlords get stuck in a rental amount that does not cover expenses. A 2.5% increase is pocket change when you are receiving $1200 for a 3 bedroom unit as the tenant has been there for 8-10 years.

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Weiting Bollu
Mom, Rental Housing Provider, Rental Housing Advocate, Educator, and Openroom Co-Founder & CEO

About the Author

Weiting's entrepreneurial journey began with a costly lesson in rental property management, where she experienced losses exceeding $35,000 due to non-paying tenants. Determined to prevent others from facing similar challenges, she built Openroom to pave a future towards a transparent and connected rental ecosystem.

Drawing from her extensive background in software product management spanning education, telecommunications, insurance, and artificial intelligence, Weiting has become a trusted advisor to founders of venture-backed companies. Beyond the tech sphere, Weiting managed properties for over a decade and made significant contributions to community leadership. She’s served on the Board of Rotary District 7070 and chaired various organizational committees.

Weiting balances her professional endeavours with being a parent of two kids under two. Alongside thousands of other parents, she was awarded participation trophies in innovative improvisation, ever-changing expectations management, daily roadmap planning, and hardcore patience!

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landlords-opinions-on-municipal-renoviction-laws
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