August press review

The month of August witnessed several interventions by CORPIQ on television and radio. The hottest topics addressed were the issues of housing availability; stories of tenants leaving without paying their rent; the need to make the security deposit legal; and trends in property sales and starts.

Residential real estate market on decline

First, it is becoming more and more evident that we are witnessing a cooling of the real estate market after the frenzy of the last two years. Caused by rising interest rates, La Tribune mentioned a slowdown to be expected this fall. In an article from La Presse, the next three to six months will be shaky for the province of Quebec as a result of the economic slowdown. Different market correction scenarios are expected. Thus, in this article from Journal de Montréal, we can read that we should expect a correction of 20% announced by the RBC Bank in the residential real estate market. On the Desjardins side, a 25% decrease is expected in Canada, and 17% in Quebec. An article from Les Affaires indicates that Quebec has not experienced a negative change in home values since the beginning of this millennium. One would even have to go back to the 1990s to see a downward correction of barely 5% when unemployment in Montreal reached almost 17%. In short, according to a study mentioned in the Le Nouvelliste, Saguenay has the most affordable real estate market in Canada.

 

Non-payment of rent

CORPIQ has taken the opertunity of an unequivocal media presence regarding the phenomenon of tenants leaving a dwelling without paying the rent just before the end of their lease in June. In fact, as reported in this article from Le Soleil, it is no less a "coming explosion" that is predicted. This follows a CORPIQ survey asking it’s members if landlords have been victims of this phenomenon. This survey reviewed by ICI Radio-Canada Québecreports that nearly 25% of those surveyed have experienced non-payment of rent, and that nearly 1 out of 5 landlords have even discovered that one of their tenants has left their dwelling without warning. It even adds up to nearly $225 million lost in non-payment of rent, as reported by TVA Nouvelles. CORPIQ's Director of Public Affairs and Government Relations was also able to express this situation on 98.5FM Montreal, in an interview.

 

Security deposit

In addition, the subject of security deposits is closely related to non-payment of rent. "A security deposit is also to assure landlords that if the tenant leaves without paying, they are left with some form of guarantee, as we see in other provinces," reads this article from TVA Nouvelles. However, even more unfortunate situations may arise that require a security deposit: a dwelling that has been ransacked and left in poor condition by an outgoing tenant for example. The right to demand a security deposit is still illegal in most cases in Quebec, but CORPIQ’ Director General has intervened in this interview to express  incomprehension on the absence of such a right in the province whereas it is allowed elsewhere in Canada. Other arguments in support of its legalization were presented in Tout un matin on Radio-Canada's OhDio.