How residential REITs work

Residential REITs own less than 6% of the purpose-built rental stock, and less than 3% of the total rental market in Canada. The majority of residential rental property in Canada is owned by small landlords.

Residential REITs are majority owned by small private investors –  individuals, many of whom are retirees, who rely on their investment to help make ends meet in their sunset years.

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Every rental apartment building is and always has been an investment, whether it’s owned by an individual, a company, a pension plan, a social housing provider or a residential REIT. Investment is required to build and maintain all rental properties. 

Rent control laws and administrative caps are in place for over 80% of all rental apartments in Canada. Our rent increases comply with these rules 

After paying for operating expenses, 100% of the income of a residential REIT is distributed to owners: most of whom are regular Canadians saving and paying for retirement. That income is then taxed through income tax at the owners’ own marginal rate - just as if they owned a rental property directly. If any income is not distributed to owners, the residential REIT pays the highest marginal tax rate: approximately 53%. Ultimately, the overall tax contribution from a real estate owner, either as an individual property owner or a residential REIT unitholder, is approximately the same.

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That’s it. We don’t do them. For us, profit secures the future of our mostly small investors. But we also understand that housing isn't simply about wringing every last dollar from our clients. We understand that housing is about more than providing shelter. It also fosters safety, a sense of community belonging, and personal pride. This core value guides all of our professional property managers.

That’s why more than half of our roughly 120,000 suites are affordable as defined by CMHC. This means residents pay less than 30% of the median renters’ income for their housing.

We continue to invest in new properties and are taking advantage of government incentives. Thanks to the fact that governments have made progress  to incentivize home construction, we have thousands of units in our pipeline.

Residential REITs invested more than $40,000 per home in capital projects over the last decade, primarily in utility upgrades, repairs, and energy efficiency improvements like new boilers, elevators, roofs, building envelopes, and windows.

A 2025 study showed that residential REITs are substantially more likely to maintain, upgrade, and modernize our buildings than other property owners.  The study found residential REIT properties in the Toronto area “are amenity- and sustainability-rich. Buildings with at least one environmental amenity are about 100% more likely to be residential REIT-owned; each additional amenity raises the odds of residential REIT ownership by 8–14%.”

The 2025 study also demonstrated, it is this commitment to providing a quality and amenity-rich living experience to our residents that explains any rent differentials with other property owners, not our ownership structure. 

A 2025 study showed residential REITs reinvest in more and greener improvements. Residential REIT-owned properties in the Toronto area are more than twice as likely as other property owners to secure environmental upgrade permits to install lower-carbon upgrades. Such improvements can reduce residents’ energy bills and carbon emissions over time.