July press review

Despite the summer period following the moving season, CORPIQ was extremely active throughout the month of July. The beginning of the month started with the subject of the housing situation following the moving period; the announcement of a new increase in the Bank of Canada's key interest rate; the results of a survey conducted by CORPIQ with its landlords concerning the subletting of dwellings by tenants without their landlord's knowledge on platforms such as Airbnb; and finally, the announcement of a Code of Ethics and Deontology for CORPIQ members.

Vacancy rate and rural exodus

In an article from La Presse which covers the phenomenon of Montrealers leaving the region to settle in the suburbs, we mention a survey conducted by CORPIQ which reports a vacancy rate in Montreal of about 4.7%. Dwellings are available in the Montreal region, thanks to the phenomenon of the exodus towards the neighbouring regions, and by a marked increase in the price of rents since the last two years in a pandemic situation. CORPIQ also had the opportunity to broadcast an article through Le Soleil editorial in which facts propagated by advocacy organizations were corrected. It mentions that the calculation of rent increase figures must come from independent organizations with robust figures such as Statistics Canada and CMHC instead of from a compilation of classified ads as done by the RCLACQ.

 

Housing affordability?

Regarding the debates on housing affordability and availability, CORPIQ has intervened through an article from Radio-Canada to the proposed idea of establishing a rent registry. Such a solution would target landlords and would exacerbate a host of landlord-unfriendly behaviours, such as lease assignments used to freeze rents, which force landlords to subsidize, in a sense, units over several years.

 

Bank of Canada raises its key interest rate

In other news, it was no surprise that the Bank of Canada made another announcement to raise its key interest rate. However, as we can read in this article from Le Droit, it is rather the 1% increase that seems to have taken some experts, including the president of the Gatineau Chamber of Commerce. In an article from La Presse, the increase is being described as a "crushing blow". For example, according to a BMO Capital Markets economist, it will be "even more difficult [to qualify] for a mortgage under the rules surrounding Canada's stress tests." So, for a variable rate, you go from 5.25% to 6% to qualify. For fixed rates, a borrower will have to qualify with a rate around 7%. It should be noted that the purchasing power will also suffer the consequences, especially in a context where inflation climbed to 8.1% in Canada.

 

Illegal sublets

CORPIQ was able to gain a lot of visibility in the provincial media after broadcasting the results of a survey on illegal subletting by tenants without the knowledge of their landlords. These are literally thousands of landlords who are victims of illegal subletting conducted on short-term platforms like Airbnb. As reported in this article from Journal Métro, nearly 13,000 dwellings are sublet without the landlord's consent. Please note that an article on the Electronic Lease website mentions details on the conditions allowing the non-renewal of a lease following a sublease that has lasted more than 12 months. Basically, CORPIQ would like to see a better regulation of subletting on short-term accommodation platforms, notably by increasing surveillance and imposing significant fines, as mentioned on the 98.5FM website. The Director of Public Affairs and Government Relations of CORPIQ, also mentioned on TVA Nouvelles that "rental landlords are still working hard to provide a roof over the heads of 1.3 million households in a context of scarcity in several regions."

 

Code of Ethics and Deontology

The announcement of a Code of Ethics and Deontology by CORPIQ for its members has generated strong reactions. However, it is not a matter of interfering in the contractual relations between landlords and tenants, but rather of ensuring that the best practices are always put forward within the workforce. As expressed in this interview with TVA Nouvelles, it is about highlighting the rules and laws to better equip landlords. In this article from Journal de Québec, a training plan for CORPIQ members is also mentioned. Note that a summary of an interview conducted with Radio X on the same subject has been written by CORPIQ where highlights of this project that will be launched in the coming year are summarized. CBC also contacted CORPIQ where the Director of Operations, K. Buche, was able to clarify certain details on the implementation of the Code of Ethics and Deontology. Thus, if the public opinion could react negatively by being aware of stories of landlords acting outside the law, CORPIQ tries to demonstrate that this kind of landlord does not fit with the line of conduct of its membership.