2015-2016 Budget: Will the Government wait until a building collapses or will it support the rental real-estate world?

2015-2016 Budget: Will the Government wait until a building collapses or will it support the rental real-estate world?

Montreal, March 25, 2015 --- The Association of Québec Landlords (APQ) saw some open-mindedness from the Couillard Government with, for instance, a change in October 2014 in cases of non-payment of rent, but also contempt for them with the imposition of licensing fees for using an electronic lease or the maintenance of the G-clause in the new mandatory lease form.

It is on the eve of the unveiling of the 2015-2016 budget that the APQ still hopes that the Government will open its eyes to the growing problems associated with the aging rental stock and its adverse actions by still granting new AccèsLogis projects.

“We are in favour of an investment in the citizens’ quality of life or in helping customers with lower incomes. Where we disagree, however, is on the method used. Private owners would be happy to serve this clientele if government or city assistance was given to the individual rather than to building new social housing at great cost to the detriment of private building by unfair competition. We need to help tenants who are in need by using financial assistance to the person rather than by subsidizing the stone,” says Martin Messier.

The AccèsLogis Québec programme promotes giving assistance to stone, and buildings that have benefitted from such an assistance program should be used for people in need only.
But this is not entirely the case because, while wanting to benefit a certain mix of clients, the programme provides that, according to the AccèsLogis Québec information document, only between 20% and 50% of the housing units should be occupied by households eligible for the rent-supplement programme. That is to say that some of the tenants might be persons without special needs who receive economical rental rates equivalent between 75% and 95% of the median rent for a region depending on the type of housing according to the data of the
Société d’habitation du Québec (SHQ).

In addition to dealing with unfair competition, rental housing owners also have to live with a completely obsolete method for setting of the rent which no longer reflects the reality of the rental market, and they receive no financial support!

“It seems that, for the Government, the owners are not entitled to tax credits like LogiRénov because it is for homeowners. Economically speaking a tax credit would be more than profitable! The housing stock is ageing, through lack of financial support, income, and the homeowners cannot undertake major works. Should we wait for a tragedy to occur such as in Toronto before the Government acts?” concludes Martin Messier.

The Association of Québec Landlords (APQ) requests a comprehensive reform of the rental field: with criteria adjusted for the setting of the rent, with a return-on-investment (ROI) of 10 years, a security deposit, tax credits for the renovation and modernization of buildings, the abolition of the G-clause, etc...

Founded in 1984, the Quebec Landlords Association (APQ) is the most important association to offer services to rental property owners. It has been serving the owners of all the regions of Quebec for over 30 years.
In addition to offering, as much to duplex or triplex owners as to real-estate property managers, an assessment service of tenants which is unique in Quebec.

25 March 2015
Copyright APQ