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Why Montreal rental rates are so lower than rest of the nation?

dom rem

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Isn't rent to own always better than just paying rent?
Yes because after paying rent for lets say 5 years, if it was a rent to own contract, they paid an amount towards the cost of the house whereas when its a rental contract they didnt pay a penny towards the home or apartment.
 

TrickyRicky

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This discussion may benefit from some knowledge of the rent control laws in Montreal. I have no knowledge but a friend of mine lived there years ago and his landlord was a young guy trying to fix up the building. There were some laws whereby you have to keep the unit empty for some amount of time if you wanted to raise the rent? Can’t remember exactly but definitely regulatory environment disincentives to investing in existing and creating new rental stock
 

DSC

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This discussion may benefit from some knowledge of the rent control laws in Montreal. I have no knowledge but a friend of mine lived there years ago and his landlord was a young guy trying to fix up the building. There were some laws whereby you have to keep the unit empty for some amount of time if you wanted to raise the rent? Can’t remember exactly but definitely regulatory environment disincentives to investing in existing and creating new rental stock
If you want to know the Quebec rules you can easily find them on www. See https://www.rdl.gouv.qc.ca/en/renewal-of-the-lease-and-fixing-of-rent/rent-increase.

Of course the rental rates in different places will depend on the applicable laws but also on the demand. The old economic rules about supply and demand hold true!
 

lead82

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Just want to add to the debate about housing. Montreal does indeed have lower salaries but in my opinion this is more than offset by the cheap housing closer to the core city which results in shorter commutes. Also for families, daycare costs are 1/10th of those in GTA. So yes Montrealers have to lay a bit more in taxes but the savings are more then offset by cheap housing and daycare.
 

TrickyRicky

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I guess it’s lazy of me to ask rather than research myself about Montreal rent controls but a quick www on the subject yields kind of funny results. Basically the landlord can ask to raise the rent whatever they want and the tenant in turn can refuse to accept any increase demanded by the landlord?
 

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I guess it’s lazy of me to ask rather than research myself about Montreal rent controls but a quick www on the subject yields kind of funny results. Basically the landlord can ask to raise the rent whatever they want and the tenant in turn can refuse to accept any increase demanded by the landlord?
Yes, the link I posted above is surprisingly clear for a government one!

'In the case when both parties cannot reach an agreement on the rent increase (or on any modification of the lease), the landlord will have to file an Application to Modify the Lease at the Régie du logement, within the month following the answer of refusal by the tenant.'

The Regie has certain 'standard increases it expects each year so most of their decisions are fairly quick. A landlord who want to increase rent by significantly more than their norm will need proof that the Unit has been improved or that City taxes have increased very significantly etc.
 

TheKingEast

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Just want to add to the debate about housing. Montreal does indeed have lower salaries but in my opinion this is more than offset by the cheap housing closer to the core city which results in shorter commutes. Also for families, daycare costs are 1/10th of those in GTA. So yes Montrealers have to lay a bit more in taxes but the savings are more then offset by cheap housing and daycare.
Great city that does not expect its esidents to literally be slaves to a mortgage or a job. The mentality there is just different. Toronto people are zombies. They work to survive. They have huge mortgages and other debt hanging around their necks.
 

lead82

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Fully agree. Montrealers are chill. They go out more; they enjoy life and take more vacations. They work to live. Torontonians live to work.
 

TheKingEast

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Fully agree. Montrealers are chill. They go out more; they enjoy life and take more vacations. They work to live. Torontonians live to work.
Montreal has its issues, but the culture there is a much more laid back one. When rent is cheap, you don't have to really care about owning a home. You don't have to fight for a top tier job just to get by. You can actually have children and have a family. In Toronto you have to think long and hard about that one. Housing is unaffordable for many, then add $1500 a month in child care. Salaries are higher in Toronto, but when you compare rents and cost of living, you actually come out on top in Montreal.
 

nephersir7

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This discussion may benefit from some knowledge of the rent control laws in Montreal. I have no knowledge but a friend of mine lived there years ago and his landlord was a young guy trying to fix up the building. There were some laws whereby you have to keep the unit empty for some amount of time if you wanted to raise the rent? Can’t remember exactly but definitely regulatory environment disincentives to investing in existing and creating new rental stock
Montreal/Quebec's regulatory environment definitely doesn't disincentives creating new rental stock.

If anything, it's the opposite.

Throughout the last two decades, there has consistently been more rentals built in the Greater Montreal Area compared to any other city in Canada, and possibly North America.


 

p_xavier

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Just want to add to the debate about housing. Montreal does indeed have lower salaries but in my opinion this is more than offset by the cheap housing closer to the core city which results in shorter commutes. Also for families, daycare costs are 1/10th of those in GTA. So yes Montrealers have to lay a bit more in taxes but the savings are more then offset by cheap housing and daycare.
Québec in general has caught up with Ontario, average salaries are just slightly higher in Ontario. In my field, it pays more in Montréal than Toronto. I had gotten a job offer at Metrolinx and it was ridiculously lower than what I'm currently making in Montréal. There's also a decrease of poverty of 18% on the Island of Montréal.
 

TheKingEast

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Québec in general has caught up with Ontario, average salaries are just slightly higher in Ontario. In my field, it pays more in Montréal than Toronto. I had gotten a job offer at Metrolinx and it was ridiculously lower than what I'm currently making in Montréal. There's also a decrease of poverty of 18% on the Island of Montréal.
Toronto has a lot of grossly underpaid professionals. I work in the tech field, we take advantage of young talent and pay them a fraction of what they deserve... Was not as big of an issue when rents and mortgages weren't so high.

Would move back in a heart beat if the wife was cool with it.
 

lead82

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I would agree. I’m also in the tech field and salaries here are much too low for the housing costs. Compared to California, our salaries are about 50% lower (when converted to USD). This was fine until about 2015 when the market went bonkers and rent and real estate went through the roof.
 

Bayer

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I can work anywhere, and I often think about returning to Granby QC, a city of 65,000 about 45 minutes east of Montreal, where you can get a large 2-bedroom for $600/month. But calculating the trade-offs can be complicated. Lower housing, electricity, child care and car insurance costs on the one hand; higher income and sales taxes on the other. Age also matters; although the Quebec health care system is frankly stretched past its limits, its long-term care system is superior to what we have in Ontario.
 

fenwickfox

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I'm currently working/living in Montreal. I got a 25% salary increase moving to Quebec, but taxes actually end up giving me less than my salary in Ontario...

There's a lot to love and hate about a city, truthfully. I'm personally looking to return to Toronto when my preconstruction condo is finished this year. I did previously live in Montreal for 5 years during school, so it's not a honeymoon phase. Montreal just keeps reminding me it's not for me. The grass isn't always greener.
That being said, plenty of coworkers moved their families out here and bought a house to raise them in. Not a bad move by any means. Montreal does have a lot to offer.

Oh yea, but you'll also be put on a 2 year waiting list for a family doctor. That's fun.
 

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