Do a google search on “live rent free in Toronto”. Amazingly, things do turn up. It is possible for a tenant to live “rent free” – the “Good Way” and the “Bad Way”.
First the bad way:
The above tweet references an article in National Post.
Legal loopholes allowed tenants to live rent-free for almost 10 months in a $3,600 per month downtown Toronto apartment, court heard, one of an increasing number of cases that prompted an exasperated judge to call for changes to the way landlord and tenant disputes are handled in Ontario.
Second the good way
The above tweet references a post about how to live “rent free” at LandlordRelief.
If the tenant is not paying anything for the cost of “owning the property”, then:
The tenant is effectively living “rent free”!
Q. How is this possible?
A. There are tenants who have lived in Toronto apartments for many years and are still benefiting from the original Ontario rent control laws. The monthly fee that they pay is only enough to cover the cost of “maintaining the property”. The tenant does NOT pay enough to compensate the landlord for owning the property. In other words:
The tenant is living “rent free”.
Is it possible for a tenant to live “rent free” in Toronto? It certainly is and many do.
Should a tenant who is living “rent free” purchase a property?
Tenants often consider purchasing a condominium. What if the rent on the apartment is equal to the condominium fee and taxes paid to own the condominium – only the cost of “maintaining the property”? In this situation the monthly fee paid by the tenant is the same amount he would pay for “maintaining the condominium”. The tenant is already living “rent free”. By purchasing a condominium, the tenant will actually (because he must now pay for the right to use the condominium unit) begin “paying rent”.
Why would a tenant start paying “rent” when he/she is living “rent free”?
No, it does NOT always make “economic sense” to own.
This is particularly true when the question remains:
Are Toronto condominiums a good investment?