Ontario apartment buildings bring investors double-digit returns. Some tenants say they're paying the price
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https://www.cbc.ca/news/canada/hamilton/equiton-apartment-buildings-1.6978668
https://www.cbc.ca/news/canada/hamilton/equiton-apartment-buildings-1.6978668
Equiton's strategy is to buy buildings where existing tenants pay below-market rent, and renovate units when those tenants move so they can be rented out at higher rates, generating profits for its more than 8,000 investors, said its vice president Lavelle Lindo. Lindo shared the business insights in an interview with a wealth management company posted online in 2022.
It seems like their business strategy is buying out places charging below market rates and renovicting the people living there. Demons.
That’s exactly what these places do. Met Cap is a huge one. They were “renting” units for 50% more than most others in my neighborhood.
The “renovations” are laminate floors, new paint, and new cabinet doors. Nothing remotely worth what they are asking.
I’m still floored that this country monetizes homes.
I’m still floored that this country monetizes homes.
The folks who made that possible want everything monetized, but I'm hopeful this way of thinking is on its way out, for a few reasons.
It's crazy that our government just removed taxes for new apartment buildings, making it even more profitable for these corporations. I know we need to do something about the housing crisis but this just doesn't seem right at all...
It encourages the construction of more purpose built rental housing. It's just one step in lowering the cost of housing.
Yeah I totally understand the idea. And I hope it helps us have more housing. But it sucks to know that it might also make it easier for more slum lords to exist.
I don't know what it is.. but there is something different when the landlord is a member of the community you live in versus a faceless corporation. Theres something to think about.. if members of the community are the owners, I'm pretty sure this kind of behavior wouldn't be so rampant. You don't care about those people if you aren't in the same boat as them and big corp aren't even people.. no wonder everything is becoming shit everywhere.
This is the best summary I could come up with:
A real estate investment company that's bought up dozens of older apartment buildings in recent years says it has become "a great Canadian growth story," while some of its tenants say they're living in a different reality.
Private real estate investment trusts have flourished under Ontario's current rules that allow landlords to raise rents between tenancies, which incentivizes them to push existing tenants out, said Steve Pomeroy, an executive advisor at the Canadian Housing Evidence Collaborative at McMaster University.
The city ordered Equiton to repair walls, plumbing, bathroom counters, bathtubs, ceilings, doorknobs, closet doors, windows, a garbage chute and a smashed glass fire box.
But she's looking to recoup costs at the Landlord and Tenant Board (LTB) including for the mice traps she bought herself when Equiton failed to address an infestation, and space heaters when temperatures plunged in her unit last winter.
Shelly Morris, a tenant who is a university student and receives social assistance, said if the latest above-guideline increase is approved, her rent will have gone up by over 10 per cent since Equiton took over and she'll be paying about $100 more a month.
Council passed a slew of measures this summer including requiring landlords to register their apartment buildings and be subject to routine inspections, as well as bolstering a fund to help tenants fight evictions.
The original article contains 1,113 words, the summary contains 216 words. Saved 81%. I'm a bot and I'm open source!
The solution to the housing crisis is to just build more housing. Anything else just creates loopholes that people will exploit.
That’s exactly what these places do. Met Cap is a huge one. They were “renting” units for 50% more than most others in my neighborhood.
The “renovations” are laminate floors, new paint, and new cabinet doors. Nothing remotely worth what they are asking.
I’m still floored that this country monetizes homes.