Press review of September

Bill 31, currently being studied by the Minister responsible for Housing, France-Élaine Duranceau, is the focus of this month's press review.

The article in Le Devoir entitled "Cri du cœur des propriétaires contre les cessions de bail" (Landlords' cry against lease assignments) gets to the heart of the matter. "Landlords denounce the growing use of lease assignments and the "stratagems? developed by tenants to rent out their apartments without their agreement. The rental market, they say, is on the verge of "breaking point?," announces the introduction. 

"CORPIQ is criticizing tenants for misleading their landlords by signing lease renewal notices, only to post their apartments on Facebook groups dedicated to assignments," it reads. Public Affairs Director Marc-André Plante explains: "Many tenants renew their leases knowing full well that they have no intention of moving in on the following July 1. In addition, groups dedicated to lease transfers are on the rise. "Some have 54,000 members," he notes.

CORPIQ was the first to speak out during the consultations surrounding the bill's study, pointing out that "lease transfers have turned into a parallel market" resulting in the "commoditization of leases", as some tenants go so far as to advertise their apartment, even negotiating rents higher than what they themselves pay by including their furniture in the price", mentions the text.

CORPIQ believes that Bill 31 "restores the balance" and "returns to the spirit of the law" that authorized lease transfers in the 1990s, calling the current legislation "outdated".

"The only thing keeping us afloat is to cut on maintenance," says Mr. Plante. CORPIQ Chairman Éric Sansoucy, meanwhile, pointed out that lease transfers contribute to the deterioration of rental properties. "It's when a tenant leaves that major work is done," he observes. The Association des professionnels de la construction et de l'habitation du Québec (APCHQ) agrees. "We mustn't miss opportunities to renovate our buildings, and not let them fall into disrepair," argues its advisor, François Bernier.       

The opinion piece entitled "La principale cause de la crise du logement est un gros tabou" ("The main cause of the housing crisis is a big taboo") by Mario Dumont in Le Journal de Montréal also catches our eye. "No government dares evaluate the real effect of rent control," he begins. He continues: "Rent control is a central cause of the housing crisis we are experiencing in cities".

The author returns to the economic theory behind rent control to support his point. In the short term, rent control benefits tenants. "By limiting the rate of rent increases allowed, the government is slowing price rises. The rental stock is already in place, landlords are lowering their profit margins a little, but nothing major. This will last, let's say, for the first decade," he writes.

In the second decade, rent control begins to take its toll on landlords. "We're still a long way from a crisis, but we'll be putting the pedal to the metal on renovations, and a few will be thinking of turning their units into condos," we explain. The third decade is described as follows: "The rental housing stock is aging badly due to a maintenance deficit. Not enough new units are being built, and vacancy rates remain low."

Finally, after 40 years, it's crisis time: "There's an acute shortage of housing. Scarcity is putting upward pressure on prices. (...) The cheapest places left are slums, the result of a shameful lack of maintenance". As a result, the low-income earners we sought to protect are struggling to find housing. Is my story just theory?" asks Mr. Dumont. Tell me that's not roughly what's been happening in Quebec for the past 40 years. The PQ introduced the Régie du logement in 1980..."