The security of tenure

It’s interesting what 23,000 emails can do.

Late last week the Ford government – fresh from pissing off Donald Trump – said it would begin the process of changing rental rules. One proposal was to end a thing called ‘security of tenure’ which allows renters to stay in their units after a lease ends, so long as they pay on a monthly basis.

Let’s change that, the province said, so that a lease is a lease. When it ends, tenants can be punted. This was one of 40 changes and part of the government’s fetish to build more units, this time by making it easier to be a landlord (and maybe soak up some of those tens of thousands of vacant condos).

It took mere hours for the pushback. Tenants’ groups, lawyers, local politicians and people like Amanda jumped on this so hard that by yesterday afternoon, Queen’s Park folded. The housing guy gave up. That proposal is dead. However, “We will continue to implement other common-sense reforms to strengthen the province’s rental housing market. Residents expect stability and predictability in Ontario’s rental market, and now is not the time to consider changes to this system.”

Now it’s important to remember that half of the folks in Toronto rent. In Montreal, a majority are tenants. Ditto in Vancouver, where 55% of people cut a monthly rent cheque.

As a certain pathetic but canine-loving and adorably well-muscled blog has pointed out many times, in most cities, in most cases, landlords subsidize tenants. In the GTA seven of ten LLs who bought their units (usually condos) in the last few years are in negative cash flow. Almost all the time it is far cheaper for an individual to lease a unit than buy the same one. And lately, as we know, rental rates are falling, thanks in part to a gutting of immigration and foreign student levels by the Carney government.

Besides, says Amanda, renting provides huge intangibles. A better quality of life. Community. Belonging.

She, her hubs, her kid and her dog have lived in the same “modest, but well-run” sixty-year-old rental complex of roughly 500 units for the past 11 years. Amanda and her husband are high-income professionals who could easily buy a Toronto house if they wanted. But they don’t.

Here is her story.

We genuinely enjoy living here. The excellent location and lower cost vs. owning are certainly benefits but it’s the people, the community, that I value most. Due to rent control and security of tenure residents are able to put down long term roots and care about paying their rent on time and keeping the building in nice condition.

The rental I live in now feels very similar to the close-knit suburban cul-de-sac I grew up in, and has been a great place to raise a family. My kid knows every single one of our “floor neighbours” and could go to any of them in an emergency. We keep an eye out for each other’s kids and take care of our seniors (the couple across from us have lived here since 1970 – and somehow pay more rent than us!).

New residents are welcomed and brought into the fold. We check on each other’s units while away, dog/cat/plant sit, and have literally had folks drop by to borrow a cup of milk. On Labour Day weekend we had a potluck for the “dog folks” and my heart was warmed to see 30 people of different ages (20s-70s), cultures, incomes, and walks of life chatting, playing cards, and enjoying each other’s company.

Previous tenants who have bought or moved into senior’s homes drop by to visit, even years later! The location just off Yonge St. is an absolute oasis of amenities with libraries, transit stations, and businesses. Sure, I have to cope with parquet flooring, window AC, no dishwasher, and communal laundry but those are small headaches compared to all the positives that rent control and security of tenure provide.

So are we screwing our highly profitable corporate landlord by staying too long? Nah, the current arrangement is mutually beneficial.

The great living environment and ability to count on a long-term home has generated an extremely highly-qualified applicant pool of tenants. The landlord is able to be incredibly selective in who they take on and as a result the tenant base is largely comprised of high-income professionals, middle class families, and well-pensioned seniors.

Without the selling points of rent control, and security of tenure the development is just a dated building with no amenities and the landlord would almost certainly have to reduce their rental rates and accept less qualified tenants to compete with the plethora of condos and new non-rent controlled purpose builds in the area.

Tenants here pay on time like clockwork and amazingly there’s been only one formal LTB eviction for non-payment in the last 10 years! We’re effectively the human equivalents of AAA Bond Ladder!

Amanda does not need to worry about the rate on a mortgage renewal. She won’t pay Olivia Chow’s coming barrage of property tax increases. There was no land transfer tax when her family moved in. No six-figure deposit. No ream of documents or plumped-up legal fees. If they choose to move, no sale is required. No commission to be paid. Rent increases are known in advance, and regulated for equity.

She and her family can save, invest, build liquid wealth, achieve financial security, have flexible lives and likely survive economic downturns, reversals, job disruptions or whatever the Bank of Canada, the finance minister or the US president do next.

Can you?

About the picture: “Koda loves the playtime and back scratches at sunny Ghost Lake, AB!” writes Gus.  “We’re so grateful for your blog and its practical tips. A few years ago, we owned a condo with no savings; now, we rent in the suburbs and are thrilled that our b&d is generating income to nearly cover our rent. Your advice has truly helped us get here!”

To be in touch or send a pictre of your beast, email to ‘garth@garth.ca.

Source: https://www.greaterfool.ca/2025/10/27/the-security-of-tenure/