‘Way out of hand’: A Brampton landlord is getting slammed for renting out his converted bathroom for $550/month — but is it really that crazy (or illegal) in Ontario’s real estate market?

Soaring cost of rentals

The price of rentals in Ontario has risen astronomically in the last 10 years, driving low-income renters towards more unconventional (and, occasionally, against building code) living spaces.

According to the Canada Mortgage and Housing Corporation (CMHC), a typical one-bedroom apartment in Brampton cost around $1,018 per month in October 2013. That same one-bedroom in October 2023 (the latest data available) cost $1,636 — a 61% increase in the past decade.

That financial pain is also hitting renters in nearby Toronto. Per CMHC, the average cost of a one-bedroom apartment in October 2013 was $1,124, and the average price jumped to $1,802 in 2023, a 60% increase.

Several factors have driven this rise in rental prices. One of them is demand outstripping supply. Canada boasted the fastest population growth among G7 countries in 2023, and while the surge in immigration has bolstered the nation’s GDP, it has also put pressure on the already tight housing market, enabling landlords to hike rents on available properties.

A shortage of skilled labour, supply chain disruptions and high interest rates in the wake of the COVID-19 pandemic have also contributed to Canada’s lack of affordable housing.

This challenging environment has left renters desperate and enabled income-focused landlords — like the Brampton bathroom-turned-bedroom owner — to get creative about the living spaces on offer.

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Renters’ rights

Luckily, there are rules and regulations in Ontario (and other provinces across Canada) that protect renters’ rights. In Ontario, the Residential Tenancies Act, passed in 2006, requires landlords to guarantee that rental units are well-maintained, safe and suitable for living.

Furthermore, there are minimum required floor areas for bedrooms, kitchens and bathrooms, which are laid out in the Ontario building code. In the case of a one-bedroom apartment, the space must have a minimum floor area of 7m² (75ft²), with a ceiling height of at least 2.13m (7ft).

If you have found yourself in a position where you have rented from a listing that does not meet these requirements, you should document the issue by taking detailed notes and photographs. You can then give notice to your landlord and try to reach an agreement about breaking the lease.

If the landlord refuses your request, you can seek mediation through the Landlord and Tenant Board, while also alerting them to the deficient state of the living space. If needed, you can also seek legal advice or contact local authorities for guidance on how best to approach the complaint.

Sources

1. Daily Hive: Canadian landlord slammed for renting out bathroom for $550 a month (September 17, 2024)

2. Rentals.ca: October 2024 Rentals.ca Rent Report

3. Reddit: Someone is trying to rent out a bathroom for $550 a month for girls only in Brampton (October 2024)

4. CMHC: Toronto — Historical Average Rents by Bedroom Type

5. Statistics Canada: Canada's demographic estimates for July 1, 2023: record-high population growth since 1957 (September 27, 2023)

6. Ontario.ca: Residential Tenancies Act, 2006, S.O. 2006, c. 17

7. Ontario.ca: Building Code requirements