Dear David,
Our mortgage is almost paid off, and we’re thinking about buying a rental property. We’ve heard horror stories about what some landlords go through, but understand that new legislation exists to support them. What will these changes mean for landlords? – EAGER TO INVEST
DEAR EAGER: From an investor’s perspective, Ontario’s Bill 60 is a shift toward restoring predictability in the rental housing system. For years, the single greatest risk for rental investors has been prolonged non-payment of rent, combined with severe delays at the Landlord and Tenant Board. Bill 60 is aimed at reducing delays and limiting procedural stalling, which is important to investors.
One of the most impactful changes of the bill is a faster process around non-payment of rent. Shorter notice periods and streamlined access to hearings reduces the likelihood that non-paying tenants can drag out a situation for months. In addition, tenants facing eviction for arrears may now be required to pay a portion of what is owed before they can raise unrelated issues at a hearing. This discourages strategic delays, while also preserving a tenant’s ability to address legitimate concerns.
The bill also offers provisions that waive mandatory compensation if an owner reclaims a unit for family use, provided that enough notice is given to the tenant. Good-faith requirements remain in place, which benefits responsible investors without opening the door to abuse. The added clarity of the bill will make long-term holding strategies easier to plan and finance.
Another subtle but important shift is a move toward clearer language and processes. A regulatory definition of what constitutes “persistent late payment” reduces subjectivity and inconsistency when it comes to decision-making. In addition, tighter review timelines will potentially limit the length of time a unit may be unable to generate income, while the landlord is still paying full operating costs. Collectively, these measures professionalize the rental system and reduce the unpredictability that tends to discourage investors.
From a market standpoint, Bill 60 aims to reduce fear among investors, while encouraging lenders to be more open to underwriting rental properties. It does not remove rent control or tenant protections, but improves predictability for property owners.
PRO TIP: For investors, the fundamentals of rental properties haven’t changed. A successful landlord needs to hire the right professionals, and properly screen their tenants before entering into a long-term relationship that can be either extremely rewarding, or extremely costly. Bill 60 doesn’t eliminate investor risk, but it restores enforceability with clearer rules and tighter timelines aimed at reducing worst-case scenarios and making long-term rental strategies more viable. #Advice #AskDavid #TheNegotiator
David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Ask David today! Call or text 519-577-1212.