CORPIQ calls for a surety bonding program for low-income tenants

The recognition that a security deposit may be legal will make this practice increasingly common in residential rentals.

Aware that lower-income tenants may have difficulty putting up such a security deposit, CORPIQ has reiterated its proposal to the Quebec government to implement a public security deposit program for tenants whose financial situation makes them eligible for low-rent housing. The tenant would pay nothing. For its part, the government would pay the money to the landlord only if the tenant is in default, which is a minority of cases.

However, the practice of security deposits should not hurt low-income tenants. Low-income tenants already have difficulty convincing landlords to rent to them. A government-funded public security deposit could therefore be one of the most interesting options.

Low-income tenants often have neither a roommate to reduce the risk nor a person who would agree to bond their lease as an alternative. However, most are able to meet their monthly obligations. Many could persuade a landlord to sign a lease by paying a security deposit.