‘Financial landlords’ more aggressive on raising Toronto rents than other landlords, study finds

A recent study reveals that financial landlords in Toronto are increasing rents more aggressively than other landlords. These financial landlords include large investment firms and real estate companies that own multiple rental properties. The study found that after acquiring a building, these companies often raise rents significantly, sometimes beyond the standard provincial guidelines.

One such company, Starlight Investments, has been noted for raising rents above provincial limits. In 2024, Starlight received approval twice from Ontario's Landlord and Tenant Board to increase rents beyond the set guidelines. This trend raises concerns about affordability for tenants living in buildings owned by large financial firms.

The study also indicates that financial landlords are more likely to file for evictions. On average, eviction filings triple after a financial firm acquires a building. This suggests a pattern where these landlords may be using evictions as a strategy to increase rents or renovate units for higher-paying tenants.

Tenants and housing advocates express concern over these practices. They argue that aggressive rent increases and higher eviction rates contribute to housing instability. Many tenants feel pressured to leave their homes due to unaffordable rent hikes or fear of eviction.

In response to these issues, Ontario introduced the Protecting Tenants and Strengthening Community Housing Act in 2020. This law allows landlords to offer repayment plans and make certain rent increases, provided tenants do not dispute them within a year. However, critics argue that the law favors landlords and does not offer sufficient protection for tenants.

As Toronto continues to face a housing crisis, the role of financial landlords in rent increases and evictions remains a critical issue. Advocates call for stronger tenant protections and more affordable housing options to ensure stability for renters in the city.