Rental industry: Strict rent control would hurt supply
While there is a push to no longer exempt newer rental units from rent control, those who own the buildings say that would seriously hurt supply.
Some renters have recently complained that their monthly payments are being doubled. Landlords of units built after 1991 are allowed to do that. A 1.5 per cent cap on rent increases only applies to buildings that went up before that year.
At Queen's Park, the NDP wants the same rules put in place for all units, but the rental industry is saying not so fast.
The Federation of Rental-Housing Providers of Ontario say that if a 1.5 per cent cap were placed on all buildings, it would dissuade investors from putting up more units and that would affect rental supply.
Federation president Jim Murphy says in recent years, there has been a renewed interest in building purpose-built rental developments.
Last year, he says 5,000 new units went up, a 50 per cent increase over 2015.
He adds that 90 per cent of the members they surveyed are planning future apartment buildings.
Instead of scaring off future investors, the group is recommending that a 10 per cent cap on rent increases in newer buildings, to clamp down on the bad apples in the industry.
They're also suggesting that a building go under full rent control, a 1.5 per cent annual cap, when it turns 20 years old.