New Framework for Multi-Tenant (Rooming) Houses

New Framework for Multi-Tenant (Rooming) Houses

Real Estate News

The real estate market is constantly evolving, and it is crucial for both buyers and sellers to stay informed about the latest changes and regulations. In recent news, a new framework has been introduced for multi-tenant (rooming) houses, which will have a significant impact on both operators and tenants. Starting March 31, 2024, all operators of multi-tenant (rooming) houses will be required to obtain certain certifications and meet specific criteria to ensure the safety and well-being of residents. Let's delve into the details of this new framework and understand its implications for the real estate market.

Neighborhood

The neighborhood where a property is located plays a vital role in determining its value and desirability. When considering investing in multi-tenant (rooming) houses, it is essential to pay attention to the neighborhood's characteristics. Is it well-connected to transportation hubs, educational institutions, and commercial centers? Are there ample amenities and services nearby to cater to the needs of the tenants? These factors not only affect the rental potential of the property but also the quality of life for its occupants. Therefore, it is crucial to conduct thorough research and analysis of the neighborhood before making any investment decisions.

Under the new framework, the authorities are also focusing on ensuring that multi-tenant (rooming) houses are located in neighborhoods that meet certain safety and livability standards. This means that operators will need to carefully consider the location of their properties to comply with the regulations and provide a secure and comfortable living environment for their tenants.

The new framework introduces a range of measures to improve the safety and quality of multi-tenant (rooming) houses. Operators will be required to obtain certifications after meeting specific criteria. These certifications will guarantee that the property meets the necessary standards in terms of fire safety, hygiene, and other essential amenities. Additionally, operators will need to adhere to regulations regarding the maximum occupancy, maintenance of common areas, and general upkeep of the property.

This new framework aims to protect tenants from substandard living conditions while also ensuring that operators maintain high standards in managing their properties. It will promote transparency and accountability within the real estate market, providing tenants with a sense of security and peace of mind. Moreover, by improving the overall quality of multi-tenant (rooming) houses, this framework will contribute to the development of thriving and sustainable neighborhoods.

If you are an operator of a multi-tenant (rooming) house, it is vital to familiarize yourself with the requirements set forth by the new framework. By proactively obtaining the necessary certifications and making the required adjustments, you can position yourself as a responsible and reputable operator within the market. This, in turn, will attract discerning tenants who prioritize safety and quality, ultimately benefiting your business in the long run.

In conclusion, the introduction of a new framework for multi-tenant (rooming) houses is a significant development in the real estate market. By implementing stricter regulations and certifications, the authorities aim to enhance the safety and overall living experience for tenants. As an operator, it is crucial to stay informed and adapt to these changes to ensure compliance and maintain a competitive edge in the market. Ultimately, this new framework will contribute to the growth and sustainability of the real estate industry, providing tenants with better housing options and improving the overall living standards in our neighborhoods.

A multi-tenant house is a building with four or more rooms that may have a shared common washroom and kitchen. These rooms may also have a private washroom or kitchen, but not both.

On December 14, 2022, Toronto City Council adopted a new regulatory framework for multi-tenant houses. The Zoning Bylaw was amended to permit multi-tenant houses across all of Toronto and a new Multi-Tenant Houses Licensing Bylaw was also adopted. This new bylaw will introduce consistent standards, regulatory oversight and effective enforcement to protect the safety of tenants and respond to neighbourhood concerns.

Currently multi-tenant houses are not permitted in some areas of the city. The new regulatory framework will help ensure multi-tenant houses in Toronto are safer and permit affordable housing options across the city. It will also help support complete communities with a range of housing opportunities for different incomes and needs.

The new framework will:

• Permit multi-tenant houses across the city and set standards such as maximum number of rooms and parking requirements: Multi-tenant houses with up to six dwelling rooms will be allowed in all neighbourhoods. Depending on the location and the zoning, multi-tenant houses may have up to 12 or 25 rooms in the former cities of Toronto, East York and York.
• Introduce enhanced licensing requirements for multi-tenant house operators that promote health and safety and new standards for personal care multi-tenant houses: Under the new rules, operators will be required to develop property maintenance plans, including processes for tenant service requests, pest management and waste management and collection, to help improve property maintenance standards and ensure that tenant requests are addressed in a timely fashion. Operators will also need to comply with the Ontario Building Code , Ontario Fire Code  and Ontario Electrical Safety Code .
• Put in place an effective enforcement and compliance program: This will include a dedicated enforcement team, annual inspections, increased fines, a new Multi-Tenant House Licensing Tribunal and other enforcement tools.
• Preserve affordable housing and support tenants: This will include developing a multi-tenant house retrofit and repair program to preserve affordable multi-tenant houses. The City will also ensure supports are in place for tenants should they face evictions from a multi-tenant house or require emergency relocation.
• Roll out comprehensive communications and engagement strategies: This will include educating owners, operators, tenants and communities about the new regulations and the resources available to them as the new framework comes into effect.

Location of permitted multi-tenant houses

The new framework will allow multi-tenant houses in all zones that permit residential uses. Multi-tenant houses can be built specifically for this use, or they can be converted from an existing residential house, as long as they comply with the standards for each zone and the specific use regulations.

Maximum number of rooms in multi-tenant houses

In the former cities of Etobicoke, North York, and Scarborough, the maximum number of rooms permitted in a multi-tenant house is six.

In the former cities of Toronto, East York and York, the maximum number of rooms in a multi-tenant house depends on where the building is located:

• Six rooms are permitted in low-density residential zones—the Residential Detached (RD), Residential Semi-Detached (RS), Residential Townhouse (RT) and most Residential Multiple (RM) zones.
• Six or 12 rooms are permitted in the Residential (R) zone, depending on location. Properties located in the former city of Toronto will see no change to the maximum number of rooms.
• 12 rooms are permitted in higher density residential zones—the Residential Apartment (RA), Residential Apartment Commercial (RAC) and some Residential Multiple (RM) zones.
• 25 rooms are permitted in mixed use zones—the Commercial Residential (CR) and Commercial Residential Employment (CRE) zones.

The following map shows the maximum number of rooms that will be permitted in multi-tenant houses in Toronto, effective March 31, 2024.