Ottawa Landlords Can Raise the Rent 1.5 Percent in 2017
Many Ottawa landlords are doing very well with their rental properties and are optimistic for the future. One of the main reasons is the increase in the number of good tenants in our area.
Ottawa Vacancy Rate
According to the Canadian Mortgage and Housing Corporation (CHHC) the Ottawa vacancy rate is down to only 3 per cent. This is compared to 3.4 per cent a year ago.
One of the CMHC senior market analysts is Anne-Marie Shaker. Shaker stated that when the vacancy rate drops it’s good news for Ottawa landlords. CMHC is expecting a stable vacancy rate for the next two years.
Shaker said that while a 3 per cent vacancy rate isn’t as good for landlords as the lower rates during the Jean Chretien area of the 1990’s, it’s still a good business environment for those with rental properties.
Who Are the New Renters Coming to the Ottawa Area?
The biggest reason for the lowering in the vacancy rate is the large number of people from 15-24 years old who are finding jobs here. CMHC believes the increase demand for rentals from this young demographic is a key driver of more demand for rentals.
Smart landlords will recognize this trend and market their rental units to this key demographic driver.
Along with the lower vacancy rates, many landlords and property investors are seeing their rental properties appreciate in price. This is great news for investors as not only are their tenants paying your mortgage and hopefully providing you with some cash-flow each month, but you will profit when you sell.
Ottawa Landlord Challenges
While there is a lot of good news coming, Ottawa landlords must be careful of the challenges they face. The challenges are real and by becoming aware of them you are better prepared to deal with them.
Many Ontario landlords believe the current rules for landlords are unfair. Evictions even for things like simple non-payment of rent can take months (and sometimes years). There is a regular stream of stories about “professional tenants” abusing the system.
For example, a Kingston landlord rented to a couple of tenants because they believed they were “nice people” who would “take care of their rental property.” After moving in to the rental, the tenants began bringing in animals, and more animals, and didn’t take of them properly.
When these tenants finally moved the landlords made it clear the Residential Tenancies Act didn’t protect them and they have to face a huge financial loss (and won’t be residential landlords anymore, instead focusing on vacation rentals). This is a must-read story for landlords and a reminder of why it’s so important to screen your tenants carefully, and always include a landlord credit check.
Another challenging is the increasing costs many small landlords face. It’s not only things like property taxes. Many landlords in Ottawa and nearby are concerned about price hikes in services needed to maintain good rental properties.
A Kanata landlord wrote how her local electrician and plumber raised rates. A Gatineau landlord who also owns properties in Ottawa was shocked to find how much it cost him to hire a good contractor to replace a deck.
Ottawa Landlords Can Raise the Rent By 1.5% in 2017
The province of Ontario has rent control. In 2017 Ontario residential landlords can only raise the rent by 1.5% You may be exempt from the rent increase guideline. However, most landlords own older homes and therefore legally must follow the provincial guideline.
Ottawa Landlords Outlook For 2017
Things are looking good for Ottawa landlords in 2017. Make sure you screen your tenants carefully have a successful year.