Is Ontario Scaring Off Landlords? How We Can Fix the Long-Term Rental Market

Ontario’s housing shortage is no secret, but here’s a question that’s getting harder to ignore: are our rental laws driving landlords away?

As a Realtor® and investor in beautiful Muskoka, I’m seeing more and more landlords pivot away from long-term rentals. Instead, they’re leaning into short-term stays like Airbnb, not because they want to—but because they feel they have to.

The irony? The same government that made it tough to be a long-term landlord is now blaming Airbnb for the housing crunch. Sound familiar?

 

🧱 Ontario and Alberta: A Tale of Two Rental Realities

In Ontario, rent increases are capped at 2.5 percent, eviction processes are painfully slow, and fixed-term leases automatically continue unless the landlord meets strict conditions.

In Alberta, there’s no rent control, eviction for non-payment can happen in as little as two weeks, and leases can end naturally. It’s easier to manage property, set market-based rents, and enforce rules—so investors are flocking there.

 

🌍 What Other Countries Are Doing Right

Other countries are striking a better balance.

  • In Germany, rents are regulated but landlords get tax breaks and stable returns.

  • New Zealand reinstated 90-day no-cause terminations after realizing investors were leaving the market.

  • Australia is rolling out renter protections while making sure investors still see value in providing homes.

These examples show that it’s possible to protect tenants without making landlords feel powerless.

 

🔧 What Ontario Needs to Do

Here’s how Ontario could turn things around:

  1. Speed up the Landlord and Tenant Board process. A three-month resolution time, not ten, should be the goal.

  2. Allow more flexibility for lease termination, with fair notice and compensation.

  3. Adjust rent control to follow inflation, especially for new units.

  4. Regulate short-term rentals properly so more homes return to the long-term market.

  5. Incentivize good landlords, with things like tax relief, damage deposit reforms, and fair tribunal decisions.

 

Ontario’s tenant protections were built with good intentions, but the system has tipped too far. Many small landlords are selling off or going short-term to survive, and that only deepens the housing shortage.

We need to restore confidence for those providing long-term housing, while continuing to protect renters. There’s a balance, and we can find it.

🏡 Be where you want to be—whether that’s owning, investing, or building your rental legacy. Let’s talk about your options.

 

👩🏻💼 Lisa Selvage | Muskoka Realtor® | Lifestyle Property Expert | Let’s connect!

 

👩🏻💼 Shirlene Johnston | Parry Sound Realtor® | Serving Parry Sound & Beyond

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