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.
Real estate market outlook in the greater toronto
In our exploration of the vibrant real estate scene in the Greater Toronto Area, it's like embarking on a fascinating journey. Today, we're here to chat about the latest happenings in the market, focusing on the cozy world of mortgage trends, the warm welcome from sellers, and a friendly update on the market. Whether you're dreaming of a bigger space or something a tad cozier, this article is your friendly guide, packed with insights to help you along your property journey. Mortgage rates have been the talk of the town lately, with their ups and downs and the buzz around changing lending rules. Right now, we're in a sweet spot with historically low mortgage rates, which opens up a world of possibilities for both homebuyers and sellers. These lower rates mean buying a home is more accessible for many, and sellers get to shine, attracting a broader audience looking to find their perfect home. But, as we all know, the world of finance loves to keep us on our toes, so it's a good idea to chat with a mortgage pro who can help you find the right path for your financial journey. For those thinking about selling, the stars are aligning. With more people looking for homes than there are homes available, it's like being the most popular house at the party. This demand can lead to exciting bidding wars and offers that might just exceed your expectations. Teaming up with an experienced real estate agent can make this process as smooth as butter, helping you get the best bang for your buck. Now, for those looking to buy, whether you're aiming to upsize your living space or downsize to something more manageable, the market is a bit of a hot potato. The competition is stiff, thanks to the limited number of homes up for grabs. This is where having a trusty real estate agent by your side makes all the difference. They're your local market guru, ready to help you navigate through the hustle and bustle, all while keeping your budget and dream home checklist in mind. Let's dive into the current vibe in the Greater Toronto Area. Despite the rollercoaster ride the world's been on, the real estate market here has stood strong, like a lighthouse in the storm. Lately, we've seen a steady rise in home prices, fueled by the unwavering demand and a tight squeeze on inventory. The suburbs have been getting a lot of love as more folks look for a change of scenery, craving more space to live, work, and play. In a nutshell, the real estate outlook in the Greater Toronto Area is looking bright and cheery for both buyers and sellers. With mortgage rates at a sweet low, it's a great time to make those home dreams a reality, and for sellers, the market's eager appetite is your ticket to a successful sale. Whether you're on the hunt for a new home or looking to pass on your keys to the next owner, having a friendly and knowledgeable real estate pro by your side is the secret ingredient to making your real estate adventure a joyous one. Keep your spirits high, stay informed, and let's make the most of these exciting times in the market. --Ali Bolourchi's Desk
Property tax hikes spark outcry across Canada: Are homeowners being bled dry?
We’ve reached that dreaded time of year when homeowners are slapped with property tax hikes. It’s hitting particularly hard in this economy when many Canadians are struggling to make ends meet.Post-pandemic, with communities across the country battling high interest rates and disintegrating infrastructure while seeking to improve services and offset the financial deficits of recent years, soaring property tax increases way beyond the inflation rate are being seen Canada-wide.Is this necessary? Or are homeowners being bled dry? Changing Canadian city centre landscapes thanks to eroding affordability and shifting migration According to a recent analysis by Re/Max Canada, although land transfer taxes and higher property tax assessments in key markets “appear to have little effect on the surface,” the reality is that they’re eroding affordability levels and slowly shifting migration patterns, changing the landscape in Canadian city centres. Examining six of the country’s leading housing markets — Vancouver, Calgary, Winnipeg, Toronto, Montreal and Halifax — Re/Max’s Taxes & Canadian Real Estate report notes that “governments at all levels are collecting billions” through levies and development fees on new construction and land transfer and property taxes on residential properties.Tax rate increases, along with record-high housing values and mortgage rates, are sparking “a post-pandemic exodus from the country’s most expensive markets,” the report maintains.“For many, the dream of home ownership is fading,” says Re/Max Canada president Christopher Alexander. Affordability and opportunity are keys to a healthy market and economy, Alexander asserts. “The goal should be to make homeownership more affordable, not less … Clearly, public policy is contributing to a myriad of issues, with affordability front and centre. And there’s no relief in sight.” “You can’t tax your way to affordability” Alexander says that government over-reliance on the housing sector as a means of funding is making access to housing increasingly problematic. “New and proposed property tax assessments are creating confusion in markets across the country.” As Tim Hudak, CEO of the Ontario Real Estate Association bluntly puts it: “You can’t tax your way to affordability.” Nearly 40% property tax increase proposed in Osoyoos, B.C. Count yourself lucky you don’t live in Osoyoos, on the southernmost fringe of British Columbia’s Okanagan Valley. Residents of this scenic little town — nearly half of whom are seniors — were shocked to learn that an astronomical property tax leap of almost 40 per cent was slated to be adopted this year, largely due to the need for upgrading aging and foul-smelling sewer and water infrastructure, to the tune of over $60 million over the next five years. There was a huge outcry from the town, with many people questioning why the hike couldn’t at least be spread out over several years. Mayor Sue McKortoff warned that that would just delay increases down the road. But as she explained to REM, council rescinded the unpopular budget and “agreed to conduct a review” in a special meeting. The revised final increase hasn’t yet been officially announced.Come of that what may, there’s no getting around the fact that the community’s trust in its governance has eroded. Significant hikes throughout the country To varying degrees, this is a widespread issue.In Halifax, property tax assessments this year have jumped by more than 20 per cent, prompting a hike to tax bills of almost 6 per cent. This “adds to the already significant number of hurdles for first-time buyers,” leaving residents wondering when something will be done, reports local Re/Max broker Ryan Hartlen. He believes a good place to start would be incentivizing first-time buyers through property tax subsidies.In Montreal, reassessments are higher than recent sales prices in some cases. The almost 5 per cent property tax increase (the biggest chunk of which is for public security, mainly police) is the city’s highest jump in 13 years. Montreal’s mayor has stated that Canadian cities are facing “unprecedented challenges” around inflation, housing and climate change. Meanwhile, both Vancouver (up by 7.5 per cent) and Calgary (up 7.8 per cent) are seeing significant property tax markups this year as well. And although Winnipeg’s 3.5 per cent rise is more modest, the city has raised and added fees for other services. Toronto sees historic 9.5% jump in property taxes — “one of the worst types” of levies Torontonians are facing a whopping 9.5 per cent property tax jump, reportedly needed to shore up services, combat a $1.8 billion budget deficit and help get the city “back on track,” according to Toronto mayor Olivia Chow. City councillor Brad Bradford is among those opposed. Yes, there will now be “hundreds of millions in new spending,” Bradford acknowledges, but it comes at a time when homeowners can least afford it. “I’ve heard loud and clear from many in my community that they think this historic tax hike is too much … Deciding to spend money is the easy part of budgeting. It’s finding savings that requires hard work.” Bradford recommends that those looking to buy or sell property make sure they’re factoring in the cost of the tax hike. On the plus side, the Ontario provincial government has agreed to bail the city out of some significant capital costs, including those for two major Toronto highways (the Gardiner Expressway and Don Valley Parkway). The city and other levels of government will need to continue to explore new, efficient measures to raise revenue besides property tax, states Toronto-based Re/Max Realtron general manager Cameron Forbes. He notes that examples could include road tolls and taxes on gasoline and parking. “Property tax is one of the worst types” of levy in his opinion, as it’s a regressive tax applied uniformly regardless of income. Not easy: Fort St. John, B.C. worked hard to raise taxes by less than 5% British Columbia realtor Trevor Bolin, former leader of B.C.’s Conservative Party, is well versed in budgets, having sat on the local city council of his hometown of Fort St. John for the past 16 years.“If you can imagine what your home and personal costs have looked like the past year — forced up due to skyrocketing costs — now imagine providing those same services to swimming pools, hockey rinks, city-wide fleets of vehicles, staffing wage increases, etc.,” Bolin says. “That’s what’s happening with your property taxes right now.”He explains that the Fort St. John council worked hard to ensure a less than 5 per cent increase this year, which wasn’t easy. He adds, “Sadly, as municipalities continue to cover expenses for provincial and federal governments, you’ll have a tax increase next year as well.” Lastly, “I can tell you that politicians really don’t like being sworn at while grocery shopping,” he advises, laughing. Enjoying this article?Get the latest REM articles in your inbox 3x week so you stay up to date on the latest in the Canadian real estate industry Success! Email Subscribe The post Property tax hikes spark outcry across Canada: Are homeowners being bled dry? first appeared on REM.The post Property tax hikes spark outcry across Canada: Are homeowners being bled dry? appeared first on REM.
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