Some housing experts say the federal government’s proposed measures to protect renters from low vacancy rates, high prices and other significant challenges may not be enough.
Housing policy research consultant Steve Pomeroy said the proposed Renters’ Bill of Rights is “an attempt to look like it’s doing something.”
“Realistically, I don’t think it can actually be implemented in a way that would have a meaningful impact on rental affordability.”
But some believe this is at least a beginning that could develop into something more substantial and useful.
“There are some hints in this announcement” that the government could be moving toward a more comprehensive bill of rights, said Dale Whitmore, director of policy and law reform at the Canadian Center for Housing Rights. Stated.
“It’s important that they take this process seriously and actually develop something that will serve as a proper bill of rights.”
The Liberal Party is considering creating a “renter’s bill of rights” to address Canada’s housing crisis. Prime Minister Justin Trudeau said the plan is aimed at young people struggling with the rising cost of living. Conservatives say the measure is pointless.
Earlier this week, Prime Minister Justin Trudeau said the next federal budget would introduce protections specifically aimed at young renters.
The Landlord Bill of Rights includes national standard rental agreements that require landlords to disclose a unit’s pricing history to allow tenants to negotiate rent.
The government is also giving state legal aid groups $15 million to help tenants fight landlord abuse and “renovations” (where landlords evict tenants by saying they need major renovations). We are planning to establish a fund.
The Liberals are also proposing changing federal rules so that paying rent on time counts towards your credit score.
Statistics Canada says young Canadians tend to face greater challenges than older adults when it comes to shelter costs. According to that year’s census, nearly two-thirds of Canadians aged 15 to 29 rented their homes in 2021 and spent more of their income on shelter costs than older adults.
Number of vacant seats is at an all-time low
meanwhile, Canada Mortgage Corporation The study found that in 2023, renters across the country will face record-low vacancy rates (1.5%) and record-high average rent increases (8% increase).
“As long as consumer protection, property rights, and rent regulation are all the exclusive jurisdiction of the states, it begs the question: Is this an area where the federal government should enter?” Pomeroy said.
Pomeroy said one of his proposals, requiring landlords to disclose an apartment’s pricing history, would likely have little effect on lowering rental prices.
Deputy Prime Minister Chrystia Freeland traveled to British Columbia on Wednesday to announce a series of measures aimed at supporting renters and those hoping to someday buy a home. She said she “understands the frustration” of young Canadians.
For example, learning that a place rented for $2,000 was previously rented for $1,200 doesn’t necessarily give you more bargaining power with the landlord, he suggests.
“I say, ‘That’s not fair, I’m not going to pay you $2,000.’ They say, ‘Well, okay, I’ll go somewhere else and find someone else.'”
“I mean, that’s what the market is,” Pomeroy said. “That’s how the process works.”
Whitmore said provinces such as Manitoba, Quebec and P.E.I. have safeguards against “unreasonable” rent increases when one tenant moves out and another moves in, but the situation appears to be different. That’s what I say.
The federal government released its annual rental statistics on Wednesday. And, as Justin McElroy explains, that data paints an even grimmer picture of affordability and availability than before.
And such transparency is “very helpful for landlords to know what kind of rent increases they are considering,” he said.
But most provinces don’t have limits on price increases between leases, and Ottawa doesn’t have the power to add limits.
Therefore, “what the federal government is proposing here is by itself useless,” he said.
“The other side of the coin”
Tony Irwin, president and CEO of the Federation of Rental Housing Providers of Ontario (FRPO), said the industry supports stronger protections for residents, but regulations need to be evenly balanced. states that it is necessary to
Irwin says it’s important to know the “other side of the coin”, such as the costs involved in running and maintaining a rental property.
“Maintenance costs, property taxes, utilities, insurance, etc. are all real costs for rental housing providers,” he said. “It needs to be considered as part of a broader conversation.”. ”
Mr Irwin said it was important for the dialogue to recognize the need to increase the supply of all types of housing, including purpose-built rental properties.
Whitmore said if he had to choose one measure to include in a renter’s bill of rights, it would be strong regulations to prevent excessive rent increases and digs.
Currently, legal protections for renters are a patchwork and vary widely between states and territories, he says.
And one of the big questions is whether eviction should be treated as a last resort. In some states, he said, eviction is the default outcome when a landlord complains, for example if the rent is late.
“For us, it’s clear that this should be a last resort. Some states have safeguards in place along these lines, while others don’t.” Stated.
“National standards are very important here, because where you live shouldn’t determine what rights you have as a renter.”
Mr Whitmore also said the government’s proposed $15 million legal fund to support tenants was just a “drop in the bucket”.
“There’s a real lack of legal services for renters across Canada,” he says. “And funding is often lacking. So $15 million doesn’t do much to meet that need.”
Alejandra Luis Vargas of housing advocacy group ACORN said her organization welcomed the proposed changes and said the idea of a renters’ bill of rights was a good one in principle. But more details are needed, she says, including how such proposals would be enforced.
But the government needs to address the fundamental issues first, she says, including full regulation of rents, vacancy control and a ban on fixed-term tenancies.
“Regardless of the amount, [if] The root of the problem hasn’t changed and you’re just wasting your money. ”
