Land Lease Community Assessments

Reading your land lease community Property Assessment Notice

As a property owner in Ontario, you'll receive a Property Assessment Notice for your property every four years unless there is a change to your property. Learn how to read your Property Assessment Notice.

How your land lease community is assessed

MPAC assesses land lease communities under one roll number, and the individual occupants are listed as tenants. Your land lease community assessment will show the overall current value of the entire property. 

While MPAC assesses each home, it does not identify individual assessments for each home on the notice. If you are the owner of a home in a land lease community, and require information about your specific unit, you can contact your Property Manager or MPAC’s Customer Contact Centre Toll-free at 1 866-296-6722 or TTY 1 877 889-6722.

Assessment approach

Land lease communities are assessed using three different approaches to determine property value. 

The income approach is used to value the land area used with the sites associated with the land lease community. MPAC uses the income approach to value income-producing properties that are bought with the intention of earning a return on investment in the form of rent, capital gain, or both. 

The cost approach is used to value individual homes with reference to valid home sales, when available, and any additional structures. MPAC uses the cost approach to derive a property’s value by estimating the cost to replace the functionality and utility of an improvement. 

The direct comparison approach is used in the valuation of any land not associated with the land lease community, such as common areas. MPAC uses the direct comparison approach to value land (in addition to other types of properties) across Ontario.

To determine the earning potential of the sites in your land lease community, MPAC analyzes: 

  • income 
  • expenses 
  • purchases and sales 
  • land, including the homes and common areas 

To do this analysis, MPAC requests specific data from land lease community property owners each year: 

  • a listing of site information 
  • operating statements 
  • rental information 

MPAC analyzes the income and expense information to determine the net operating income for the land lease community. MPAC makes historical reference to the income and expense information collected in prior years to ensure the information being reported is typical of a normal year of operation.  

MPAC determines the net operating income by deducting the fees and expenses listed below from the potential gross income: 

  • standard management fee 
  • standard vacancy and collection loss 
  • abnormal vacancies 
  • operating expenses, including: 
  • water services 
  • wages and management 
  • snow removal 
  • maintenance and repairs 
  • legal fees 

MPAC then divides the net operating income estimate by an appropriate capitalization rate (cap rate) for that property. 

The resulting value represents the value of land used by the homes, as well as land and structures used as common areas, such as:

  • roads 
  • pedestrian walkways 
  • recreational facilities 
  • laundry 
  • parking areas 

MPAC applies the cost approach to value the land lease community homes. In consultation with developers and owner-operators, MPAC inspects land lease communities periodically to ensure the data on file is up-to-date and accurate. 

When MPAC inspects a land lease home, the following key features are recorded: 

  • make and model
  • size
  • age
  • condition
  • type of additives such as decks, porches, additional rooms, etc. 
  • presence of air conditioning 

Based on the above information, the structure value is determined by: 

  1. Costing the unit to arrive at a Replacement Cost New (RCN), the estimated cost to construct a unit of similar design, material and functionality. 
  2. Calculating Replacement Cost New Less Depreciation (RCNLD). 
  3. Verifying that the RCNLD represents current value through market value data. 

Structures used in managing the property are also valued using the cost approach. This includes: 

  • storage buildings 
  • residences for employees 
  • commercial structures 

Excess land, which is land not used in conjunction with the operation of the land lease community, is valued using rates developed through the sales comparison approach. 

Current Value 

The land value, including excess land not used in the operation of the land lease community, is added to the structure value(s) to arrive at a total current value. 

Once the current value for the property has been established, the value is apportioned between the various uses occurring on the land lease community. This process is referred to as "partitioning". 

Partitioning is done because different uses may dictate different property classifications. 


  1. A home has a total current value of $500,000. 
  2. There is a stand-alone community centre.  The community store’s value and appropriate land to operate it is $100,000. 
  3. The remainder of the value ($400,000) is attributable to the operation of the land lease community. 
  4. The land lease community’s current value of $400,000 is therefore included in the residential property class. 
  5. The stand-alone community centre’s current value of $100,000 is therefore included in the commercial property class. 

Filing Your Property Income and Expense Return

By filing your Property Income and Expense Return, you help us ensure that your property values are based on up-to-date and accurate information. 

Learn more about filing your Property Income and Expense Return.