Return-to-office mandate could shake up rental market

The work-from-home era is fading fast in Ontario.

In mid-August, the Ford government announced that all 60,000 members of the Ontario Public Service will be required in the office four days a week starting in November, with a full return in January.

Brampton has already followed suit, ordering its city workers back as well.

Premier Doug Ford says the mandate will “bring the public service and the municipalities closer to the people they serve and revitalize our workplaces in downtowns across Ontario.”

Ontario’s commercial real estate market has faced stiff headwinds since the pandemic, and thousands of workers returning to city cores could boost office occupancy and investment activity as early as this winter.

The impact won’t stop at office towers. Pandemic-driven moves to the suburbs have already slowed, but this mandate could accelerate the return to urban living, pushing up condo rents and downtown apartment demand while softening suburban home prices.

However, not everyone will embrace the return to office. Some public servants might quit rather than give up their work-from-home lifestyle. Others might find the cost and time of commuting simply unaffordable.

If a tenant’s income stability is disrupted, whether through voluntary exits, layoffs or the rush for city accommodation, that could affect their ability to pay rent on time and in full.

This is where automation can soften the blow. PayProp offers automated payment reminders that have been proven to reduce arrears, helping property managers stay on top of cash flow even when tenants face financial uncertainty.

More renter behavior headlines

Return-to-office mandates: An ominous sign for out-of-province homebuying? – Canadian Mortgage Professional

Ontario renters on the move – what property managers can do – PayProp blog

Over 10,000 votes split Ontario on province’s back-to-office plan – INsauga