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Tenant Turnover

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RealEstateJ | 10 Mar 2015, 05:11 PM Agree 0
I am wondering if there is a certain length of tenancy that represents a sweet spot for investors? I know some people prefer to minimize tenant turnover and feel comfortable with tenants staying for a long time, but doesn’t that make it more difficult to increase rents?
  • Jon | 14 Mar 2015, 09:29 AM Agree 0
    " I know some people prefer to minimize tenant turnover and feel comfortable with tenants staying for a long time, but doesn’t that make it more difficult to increase rents? "

    You are correct. Ontario basically has rent control. Existing tenants are only subject to very small rent increases that do not factor in the real costs or managing, repairing and upgrading real estate. For instance the city of toronto is increasing garbage collection rates by about 50%, but the 2015 ontario rent increase for existing tenants is only 1.6%.

    But as a long term landlord, I have also found that Toronto and the GTA have many rentals available and if the landlord does annually increase the tenant's rent by even the small amount allowed by the govt, the rent can soon exceed market rent: meaning the tenant will leave to find more competitively priced accommodation.
  • Jeanalinas | 30 Apr 2015, 06:11 AM Agree 0
    When talking about tenant turnover killing cashflow, I am talking about all of the processes and costs involved in moving a tenant out of an apartment, fixing it up and moving another tenant in it. These processes and costs include.I have said it before and I will say it again, positive cash flow is king in the landlording business. My goal as a buy and hold investor is to try and maximize my cash flow. Over the years I have learned that there is one item that kills cash flow more than any other.




  • John Edmunds | 05 May 2015, 06:05 PM Agree 0
    I remember reading about rent control on a visit to Santa Monica CA about 30 years ago. I find it hard to believe they still have it or that Canada has it. Governments do not run anything very well, I don't suppose yours any better than the State of CA of Feds for that matter. I know if they instituted rent controls in Las Vegas NV, I would get out of real estate investing. Government control of rental rates is abhorrent and shows just how far left we have gone.
  • Jon | 09 May 2015, 09:56 AM Agree 0
    Rent control in Ontario is likely a big reason why so few purpose built apartment buildings have been built in decades.
    • streetcore | 09 Oct 2015, 12:52 PM Agree 0
      I'm no expert, but according to Wikipedia: "Rent control in Ontario only applies to units that were first built or occupied before November 1, 1991.[9] If the rental unit is in an apartment building constructed (or converted from a non-residential use) after November 1, 1991, then the rent control provisions of the Residential Tenancies Act, 2006 do not apply.[10]" — https://en.wikipedia.org/wiki/Rent_control_in_Ontario
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