The unit turnover process is a common issue for landlords and property managers, as any time a unit spends without a tenant is time the unit is losing potential revenue. This process tends to have some redundancies involved, such as performing multiple inspections of a unit and adding work to the scope for the turnover.
For the first year since 2013, Ontario’s rent increase guideline is again meeting this maximum threshold of 2.5% for 2023. For reference, had the current rent increases been able to follow the rate of inflation, the 2023 increase would have been 5.3%, according to the Ministry of Municipal Affairs and Housing.
On this episode of the we’re joined by Robert (Bob) Gauvreau, who is a Chartered Professional Accountant. He is also the Founder and CEO of Gauvreau Account & Tax Advisory, plus a best-selling author, a speaker, and a business coach. Throughout the episode, we cover topics such as hedging your business operations against inflation, why Bob finds the vast majority of business owners are paying more tax than they should be, and much more.
In this episode of the Ontario Multifamily Investment Podcast we’re joined by guests Adam Powadiuk and Aaron Cameron from First National. Aaron is mainly involved in running the operations for the commercial group, while Adam works on the sales side focusing on apartments.
The Ontario government recently convened the Ontario Housing Affordability Task Force, meant to address the growing issue of housing needs across the province. Despite the slow decline in housing starts over the past several decades, and the exacerbating effects of the COVID-19 pandemic, 2021 saw a sharp increase in housing starts, which sets an optimistic start to the push to increase Ontario’s housing supply. The Task Force recently published a report outlining 55 recommendations to spur on this progress, with the primary goal being to build 1.5 million new housing units over the next 10 years to close Ontario’s housing gap.
Affordable housing, both for prospective homeowners and renters, is in very short supply across the province. The rise in house prices has been outpacing income increases across Canada in leaps and bounds, with most young Canadians viewing homeownership as a pipedream at this point. The median household income before taxes in Ontario (as of the 2016 census) was $74,260. In the same year, the average Ontario house price was nearly $550,000. The disparity between household income and house prices has only deepened since then, with the average Ontario house price currently at roughly $750,000. The COVID-19 pandemic has further exacerbated the demand for housing across the province, and there is little indication that the market will cool in the short term.
Affordable housing, both for prospective homeowners and renters, is in very short supply across the province. Rental vacancy rates in major urban centres typically being lower than the recommended “healthy” rate of 3-5%. Households renting long term can carry an unfair stigma that they are less financially stable or are somehow lacking in character if they are unable to afford to buy a house or condo. There is also a misplaced but common concern that the presence of affordable housing in a community will lower property values and/or increase crime rates in the area.
The COVID-19 pandemic has permanently changed the way we view our daily interactions with each other and our environments. Buildings are currently designed with certain risks in mind, such as smoke, fire, power failures, and flooding. But the pandemic has manifested the need for the future of building design to safeguard public health. Considerations such as contactless interaction, ventilation, moisture control, noise reduction, and adequate space for working from home are all pivotal factors, among others, being considered in the future of building design following the experiences of tenants throughout the pandemic.
The COVID-19 pandemic has permanently altered the way we experience and perceive our environments, with new considerations taking priority in what we expect from property owners and managers. Public health guidelines and city bylaws have been issued and updated regularly throughout the province since the onset of the pandemic, regulating the required measures to be put in place by building operators to keep staff and residents safe.
A long-term strategic capital expenditure plan should be the first line of defense in ensuring no unforeseen large capital expenses creep up on landlords. Not to be confused with operating expenditures (OpEx) such as wages, taxes, insurance, equipment maintenance, etc., a thorough CapEx plan should include information on assets which provide a long-term benefit to the landlord and tenants, such as structures (foundation, windows, parking lot resurfacing, etc.), equipment (computers, security systems, printers, etc.), and appliances (laundry machines, stoves, refrigerators, etc.).