With all the challenges of owning residential rental properties in Canada many Ottawa landlords are looking at investing in commercial properties. Is it the right choice?
We hope all Ottawa landlords enjoyed their holiday and share our enthusiasm for landlord success in 2014.
Challenges For Ottawa Residential Landlords
2013 was a challenging year for many Ottawa residential landlords.
And this trend looks to continue into 2014.
The Ottawa Sun reported landlords can only raise the rent by 0.8% in 2014.
Do you think this is fair for landlords?
Are your landlord costs only going up 0.8% in 2014?
Are your taxes going up below 1%
What about your gas, electricity and water bills?
And the contractors you rely on to maintain your rentals properties and keep them safe and attractive for renters?
Are their costs regulated to only increase by 0.8%?
Most Ottawa landlords say “no, no and no!”
While other organizations were typically silent on the issue the Ottawa Sun article quoted a member of the Ontario Landlords Association.
The Ontario Landlords Association (OLA) is the leading landlord association in Ontario that really offers help for small landlords!
The OLA member said the rent increase for 2014 was unfair for good landlords.
In fact, landlords across Ontario are feeling frustrated by the Liberal provincial government.
This government refuses to understand the challenges small residential landlords face running our businesses.
Look at what Barrie landlords are saying. They are not happy.
Alberta and British Columbia Landlords
Meanwhile landlords in Alberta can raise the rent without any government regulation other than providing their tenants 90 days notice and only raising the rent annually.
Even British Columbia landlords can raise the rent by 0.2% (the inflation rate) PLUS an extra 2.0% to help them cover their costs.
It’s a great idea and protects landlords and tenants and ensures funds are available for landlords to cover repair and improvement costs.
Unfortunately this type of pro-business thinking in currently absent in Ontario.
Investing In Commercial Rental Properties
Many landlords have emailed us asking for advice on how to invest in Ottawa commercial rental properties.
After all, commercial landlords don’t have a rent increase guideline and don’t have to deal with the Ontario Residential Tenancy Act and the Landlord and Tenant Board.
As a commercial property landlord you don’t have to worry about fake tenant claims which can drag even evictions for simple non-payment for months on end…even years.
Commercial Vacancy Rates in Ottawa
For those interested in commercial rental properties the report in the Ottawa Citizen last week is an alarm bell.
The report states vacancies for office properties was up from just over 8% in the early 2000s to almost 11% at the start of 2013.
This could lead to landlords being forced to lower rents.
The Ottawa Business Journal echoed the warning.
John Zinati is the manger of leasing for District Realty. It’s a commercial real estate brokerage.
Zinati says Ottawa is going to be a tenant’s market where commercial landlords are not only going to have to lower rents, they will have to offer other types of incentives to attract commercial tenants.
Ottawa Landlords in 2014
Should you invest in residential rentals?
Is commercial rentals still a better business market?
We will discuss these and other issues facing Ottawa landlords in 2014.