How do new purpose-built rentals affect condo investors in Markham?Governments are encouraging purpose-built rentals. York Region applies a 35% reduction on its new multi-residential tax rate for qualifying rental buildings with permits issued on or after May 23, 2024, and federal GST relief applies to many new rental projects. As professionally managed buildings open, individual condo landlords compete on price, condition and service, while freehold homes and townhomes serve a different tenant pool.
For years, Markham’s rental supply came mostly from individual condo investors. New rental buildings are changing that mix.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, helps investors look at how competition affects rent and vacancy.
Incentives for rental buildings
| Incentive | Detail |
|---|---|
| York Region tax reduction | 35% of the new multi-residential regional rate, for permits on or after May 23, 2024 |
| Federal GST relief | Applies to many new purpose-built rental projects |
How purpose-built rentals compete
- Professional management and on-site staff
- Amenities designed for renters
- Stable, long-term tenancies
- Newer units, often exempt from the rent increase guideline if first occupied after November 15, 2018
Where individual landlords still compete
Individual landlords can compete with well-kept units, responsive service and fair pricing. Freehold townhomes and detached homes appeal to families who want yards, schools and more space, a segment large rental towers rarely serve.
Investing in Markham?
Michael John Lau can compare rental options and nearby competition for you.
Book a consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Running the numbers
- Check rents in new rental buildings nearby.
- Compare your carrying costs, including condo fees and taxes.
- Allow for vacancy as new supply arrives.
- Consider how long you plan to hold.
Choosing your strategy
Some investors focus on freehold homes with suites, others on condos near transit. Ultimately, the decision is yours. The goal is to make sure you have all the information before you invest.
Know the competition before you buy for rental income. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
What is a purpose-built rental?
A building designed and owned to be rented, rather than sold as condos.
Does York Region offer tax relief for new rentals?
Yes, a 35% reduction on the new multi-residential regional rate for qualifying buildings.
Which buildings qualify for the reduction?
Those with permits issued on or after May 23, 2024, meeting the criteria.
Will new rentals lower condo rents?
New supply can increase competition, especially nearby.
Are freehold rentals affected the same way?
Less directly, since they serve a different tenant pool.
Are new rental units rent controlled?
Units first occupied after November 15, 2018 are generally exempt from the guideline.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. The 35% reduction and permit date are from York Region's 2026 property tax policy update. Federal GST relief and rent guideline exemptions are general. This is general information, not financial or tax advice. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
