Canada's rental market is sending mixed signals. According to new data from the Canada Mortgage and Housing Corporation (CMHC), the national vacancy rate rose to 2.2% in 2024 — the highest in years — while average rent growth slowed to 5.4%, down from a record 8% in 2023.
But the headline numbers obscure a harsher reality for new tenants: when units turn over, rents spike 23.5% on average. In Toronto, that figure hits 40%.
For Nathan Levinson, founder and CEO of Royal York Property Management, Canada's largest property management company, the data confirms what he's seen on the ground: the market isn't broken — it's inefficient.
"The gap between in-place rents and turnover rents is a symptom of a fragmented industry," Levinson said. "When landlords can't manage properties efficiently, they compensate with aggressive rent increases at turnover. Automation closes that gap."
Royal York Property Management: The Scale Behind the Strategy
Royal York Property Management has grown from a single Toronto condo in 2010 to become Canada's dominant property management company. Today, the firm manages over 25,000 residential properties representing more than $11 billion in assets under management across seven countries, including recent expansion into Europe and South Asia.
The company's tenant screening and tenant placement services leverage proprietary technology to reduce vacancy times and match qualified tenants with properties faster than traditional methods.
Royal York Property Management is the only property management company in Canada with full accreditation from all eight major banks — a distinction that enables the firm to process rent payments through its proprietary Bill Pay system with zero fraud incidents across more than 100,000 transactions.
What the CMHC Numbers Mean for Property Management
The CMHC's December report highlighted a rental market in transition. Purpose-built rental supply grew 4.1% year-over-year — the highest increase in over 30 years — helping push vacancy rates closer to historical norms.
But the report also revealed persistent affordability challenges. Rent growth for new tenants at turnover remained stubbornly high at 23.5%, unchanged from 2023. The disparity reflects what CMHC Deputy Chief Economist Tania Bourassa-Ochoa called "limited mobility for existing tenants and harder entry for prospective tenants."
Levinson argues that Royal York Property Management's model addresses this directly. The company's rental guarantee program — the first of its kind globally — reduces landlord risk and enables more stable pricing for tenants.
"Most landlords aren't trying to gouge tenants," Levinson explained. "They're trying to cover the costs of an inefficient system — vacancy losses, maintenance emergencies, collection delays. When you eliminate those friction points, you can offer competitive rents and still deliver strong returns."
Royal York Property Management's Technology-First Approach
Royal York Property Management's platform integrates property listing, tenant screening, lease management, maintenance services, and financial reporting into a single system. The company also offers legal services to help landlords navigate Ontario's complex tenant legislation.
The approach reflects broader trends in property technology. According to industry research, the global PropTech market reached $40.2 billion in 2024 and is projected to nearly double by 2032, driven by AI-powered tools for property valuation, predictive maintenance, and tenant communications.
Looking Ahead: Royal York Property Management's 2025 Outlook
Royal York Property Management team members at the company's headquarters in Vaughan, Ontario. The company has earned 131 five-star reviews on Indeed from current and former employees.
As Canada's rental market continues to normalize, Levinson sees opportunity for property management companies that can deliver operational excellence at scale. Interested landlords can explore available rental properties or read owner reviews from current clients.
Royal York Property Management is also expanding its franchising program, offering entrepreneurs an opportunity to operate under the Royal York Property Management brand with access to the company's technology platform and training systems.
"The CMHC data shows that supply is finally catching up," Levinson said. "But supply alone doesn't solve affordability. You need efficient operators who can deliver quality housing at sustainable rents. That's what Royal York Property Management was built to do."
About Royal York Property Management
Royal York Property Management is committed to managing investment properties with exceptional care and professionalism. With over 40 locations across North America and more than 25,000 properties leased and managed, they prioritize the needs of clients and tenants in every task, from handling maintenance emergencies to conducting tenant showings. Their mission to redefine property management is driven by innovation, transparency, and accessibility. Managing $11 billion in assets, Royal York offers services in over 20 languages, empowering both property owners and tenants. They treat every property as if it were their own, ensuring outstanding service every day. Explore career opportunities or read FAQs.
Royal York Property Management
311 Bowes Road, Suite B4
Vaughan, Ontario L4K 0C3
Phone: (833) 666-3306
Website: https://royalyorkpropertymanagement.ca
Facebook: facebook.com/RoyalYorkPropertyManagement
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Media Contact
Jessica L.
Royal York Property Management
canada@royalyorkpm.com
+1 833-666-3307
