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Ontario  + Apartments  | 
Nathan Levinson, owner of Royal York Property Management, welcomes the Bank of Canada's new stance on interst-rate cuts.

Smaller Landlords to Gain from New BoC Stance: Property Manager

Smaller residential landlords will gain from the Bank of Canada’s revised stance on interest-rate cuts, says an Ontario property manager and investor.

Nathan Levinson, owner of Toronto-based Royal York Property Management, is welcoming the central bank’s decision to hold its overnight interest rate at 5% and adopt a when-not-if approach to cuts.

Levinson serves on a panel that advises the BoC on monetary policy. He provides rent data to the BoC and offers his views on interest rates and other matters.

“I definitely weighed in [before the latest decision],” said Levinson in an interview with Connect. “I made it very clear that they have to hold the position. Obviously, I’m just an opinion, but landlords are struggling.”

Royal York has adopted what Levinson calls a “very unique” business model. The firm manages residential rental properties across Ontario in some European countries for investors holding small portfolios containing a few units in one building or multiple buildings. Royal York also serves as a subcontractor for large residential property management firms, managing entire towers for them.

The company says it has about 22,000 properties and $10.1 billion in assets under management. Levinson said a future interest-rate cut will provide mortgage-cost relief for smaller landlords who are hard pressed to balance income and expenses.

“When I say struggling, $100 makes a big difference to a property owner,” he said.

Many small landlords are facing large borrowing cost increases in the near future as their mortgages come up for renewal, he noted.

He predicted that many small landlords will default on payments as their mortgage costs double. The increases would require smaller landlords’ incomes to triple, something that is not going to happen, he added.

“These are huge things that the Bank of Canada have to take into consideration when the [decisions on] interest rates come out,” said Levinson.

Connect

Inside The Story

Nathan LevinsonRoyal York Property Management

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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