Quote:
Originally Posted by borkborkbork
Agreed that rent controls are a horrible idea. And yes, you're right that incidence probably ends up on landlords in rent-controlled units (each increase in property taxes not adjusted for in rent guidelines increases the rent-control subsidy). Over the long term, rising property taxes that cannot be shifted to tenants will create incentives to sell individual units to resident owners, engage in condo conversions for buildings, etc.
Among non-rent-controlled units (ones that cost more than $1400, ones built in the last two decades, etc.), I still suspect that tax incidence is likely to be borne by tenants rather than landlords.
|
I would hope so for the reasons you've stated; this still has to be a viable business model for proper supply to exist.
But the province tried to protect against this even further by raising the maximum rent under rent control by over a hundred dollars for 2015. This brought thousands more units under rent control that had either escaped it or were never under it. That means on average nobody is better off...