Toronto Landlord Raises Rent, Tenant Forced to Move

 

A 20-Year-Old Just Trying to Make it on Her Own

Roxy Amin is a single woman living alone in Toronto. A remote Executive Assistant with Red Rover, she works countless hours each day to financially support herself. She currently lives at Rise Condominiums, on Bathurst St. She’s just managing to cover her rent, as well as her expenses.

All was flowing smooth for Amin, as she kept to her work and budgeted her spending. Suddenly her landlord contacts her informing her that she’s going to have to pay an additional $300 a month in rent. Amin simply cannot afford that. She’s already working as much as she can. She has nothing left to give her landlord. She says, “Now I’m left with no other option but to move out and move on”.

How much does it cost to rent in Toronto nowadays?

Toronto residents have been accustomed to an inflated real estate market. Rental prices have fluctuated but gradually gone up over the years. Rentals.ca reports, in their November 2023 Toronto rent analysis, that a one-bedroom unit in Toronto goes for $2500 monthly on average. This is an increase of about $700 from two-years-ago when the average cost for the same type of unit was just at $1800.

When comparing the cost in Ontario to other Canadian provinces, Ontario stands out as one of the more expensive places to rent. 

Why Lease Costs Are on the Rise

The Toronto real estate market has many asking the same question: Why is it so expensive to rent in Toronto? Landlords aren’t raising their rent costs just to make more profit, so why are they? Well for starters, mortgage rates are going up. They’ve gone up 5% just in the past couple of years. But there was an increase more recent than that. Rates went up 1.5% just in the last couple of months. 

Mortgage Specialist with TD, Maria Keblawi, says that rates are on the rise because, “The Bank of Canada is trying to manage inflation by helping the economy, as well as controlling the housing market”. She adds that now people are less likely to buy a home, as an increase in mortgage rates means an increase in interest rates. More people are likely to hold on listing their home, and even less people are likely to qualify for mortgage approvals.

Landlords simply have to pay more now for owning their units. Along with the increase in interest, they are paying more in property taxes and utilities. When mortgage rates go up, it means everything else goes up with them. This leaves tenants like Amin forced to pay increased monthly rent costs.

What The Canadian Government is Doing Against Inflation 

On top of increasing mortgage rates to lower inflation, the Canadian government is introducing legislation to build more rental homes. Chrystia Freeland, Deputy Prime Minister and Minister of Finance, introduced Bill C-56. This legislation will remove the GST that is in place on new rental housing construction throughout Canada.

“By removing the GST from new apartment construction, we are going to create more units at prices Canadians can afford across Canada. This is going to get builders to build projects that otherwise weren’t going to go ahead.”
- Sean Fraser, Minister of Housing, Infrastructure and Communities.

Fraser adds that it is crucial that they build more homes. He believes Canada needs to see a rapid growth, emphasizing that the amount of new homes built needs to be in the millions. Right now there is a greater amount of demand than there is supply, so Fraser's idea is to match that.

Prime Minister Justin Trudeau also agrees.

"We're facing a shortage of housing right now. This is a big reason why prices are just way too high. So we need to build more homes faster," Trudeau said at an announcement in Ajax, Ont., on November 30th.

With the Canadian government pushing to build new residential homes, the housing market will take a dip in prices. On top of that, Bill C-56 will allow for more rental homes to be built, also bringing the cost to rent in Canada down.

Next Steps for Amin

With the help of her realtor, Abteen Sanaee, Amin is searching for a new home. Her credit score, income and age all limit her from being approved for many units. It’s already as hard as it can get for her to actually find a one-bedroom unit in Toronto that will approve her for a lease agreement. Now, it becomes nearly impossible with the increase in rent prices. 

Sanaee has been working hard to try and find Amin a new home. He still thinks that she is better off moving back with her parents in Milton until she’s saved enough for a deposit. He says, “Roxy should take some time, a few months, to just not rush anything and take her time negotiating for her new home”. 

For now, Amin still has her current unit for about a month left. She’s working hard for a raise and promotion. She says, “My boss says I’m in line for it in January”. Still searching for a new place, she’s going to keep a bright smile and stay optimistic that it’s all going to work itself out.