The real truth behind the expensive cost of renting.

The Truth Behind Renting Tags:

First you got priced out of the market and cannot afford to buy.  Regrettably you’re forced into plan B (no I’m not referring to a contraceptive), renting. Guess what? It sucks. Not only will you get ripped off, you are forced to compete against other qualified Tenants including doctors, lawyers, bankers etc. Heaven forbid if you are a student, between jobs or have pets. I wish you luck with your search you will need it.  I am often asked how and why demand for rental housing is so strong and why is there such a lack of supply?  The answer is simple.

Municipalities dislike rental housing. The truth is in the numbers. As a commercial realtor I have worked with all types of Landlords. Currently they are all fighting to purchase rental housing. There is nothing for sale and no one will sell. It makes no sense. They have nothing to replace it with & they will be taxed to death. So I raised the question to several of these referenced Landlords. Why not build new? Why fight for old and overpriced buildings? Unfortunately the numbers don’t work for one reason, development charges. Municipalities levy astronomical fee’s to build new rental housing.  So I raised another question. If municipalities waived their levies would building new rental housing be feasible;  the answer was short and direct, YES! So I have decided to expose which GTA cities hate rental housing the most (based on highest development charges):

Development charges for 2 bedroom apartments or larger:

  • Toronto- $15,265
  • Richmond Hill- $7,336
  • Markham- $41,984
  • Region of Peel- $25,619.93
  • Brampton- $45,396.52
  • Durham Region-$ 14,887

So the award for municipalities that dislike Tenants the most goes to Brampton and in close second Markham. Disagree with what I’m saying? Take a look at how much new purpose built rental housing has entered the market where you live. Can you even find one? To conclude I leave you with some content quoted from the city of Brampton’s website:

“The City’s zoning bylaw does not permit new basement apartments. You run the risk of being charged and can face fines of as much as $50,000 — or even a year in prison — for each charge”.

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