IN THE KNOW Landlord- tenant law changes across Canada Ontario caps the rent increase guideline In June, the Ontario Provincial Legislature passed a Bill which SODFHV D à RRU DQG D FDS RQ WKH JXLGHOLQH UHQW LQFUHDVH HDFK year. Most Ontario residential accommodation built before November 1991 is subject to the guideline. Until June 2012 the guideline was set at the average increase in the Consumer Price Index for Ontario from June to May each year for the following year. The goal was to provide transparency, certainty and cost recovery close to the timing of the cost increases. However, in 2011 that produced a guideline of 0.7%, while in 2012 the guideline was 3.1%. 8QGHU WKH QHZ ODZ WKH à RRU LV DQG WKH FDS LV :KLOH LQà DWLRQ VWD\V ORZ WKH QHZ ODZ ZLOO KDYH OLWWOH HIIHFW RQ ODQGORUGV +RZHYHU LI LQà DWLRQ VKRRWV XS WKH QHZ ODZ FRXOG have a very negative impact. For rent increases that take effect during 2013, the new law UHGXFHG WKH JXLGHOLQH IURP WR 7KH QHZ ODZ LV WR expire at the end of 2016. Manitoba legal changes positive for landlords In Manitoba, the Legislature has enacted Bill 28, which should improve the Manitoba Residential Tenancies Act for landlords and law-abiding tenants. The new legal rules make it easier to evict tenants who appear to be making a building unsafe, such as suspected drug dealers. As well, the Director of the Residential Tenancy Branch is now allowed WR DFFHSW 1RWLFHV RI 7HUPLQDWLRQ ÀOHG E\ ODQGORUGV LI WKHUH is an omission, as long as the omission does not result in unfairness to the tenant. In addition, under the law before Bill 28, tenants could challenge any amount of rent increase on any ground
(including frivolous grounds), and the Director was required WR PDNH WKH ODQGORUG ÀOH D IXOO DSSOLFDWLRQ WR MXVWLI\ WKH increase, however modest. Now, tenants must provide their basis for complaint, and the Director is allowed to dismiss complaints which do not have merit without compelling a full application process. Thanks to Bill 28, the Director has the ability to sustain a rent increase without requiring a full application. Other positive changes apply to the rules about security deposits, including security deposits for pets. Quebec shortens notice period for certain moves In Quebec for a leases of 12 months, notice must be given at least 3months before the end of the lease, or the lease renews for another year. There are four situations when the tenant can cancel the lease during its term rather than at the end of its term: ‡ ZKHQ D WHQDQW LV PRYLQJ WR D XQLW LQ VRFLDO KRXVLQJ ‡ ZKHQ D GLVDELOLW\ SUHYHQWV WKH WHQDQW IURP RFFXS\LQJ KLV GZHOOLQJ ‡ ZKHQ DQ HOGHUO\ SHUVRQ LV DGPLWWHG SHUPDQHQWO\ WR D UHVLGHQWLDO ORQJ WHUP FDUH FHQWUH RU ‡ ZKHUH WKH VDIHW\ RI WKH WHQDQW RU D FKLOG OLYLQJ ZLWK WKH tenant, is threatened by a spouse, former spouse, or because of sexual aggression (even by a third party). Until recently, such a lease for 12 months would be cancelled three months after the day on which the tenant sends notice to the landlord. Under a recent amendment that period is now two months.
Continued on page 28
It’s easy to sub-Âmeter with EnerCare. It’s easy to say ‘yes’ For more information about sub-Âmetering, Call 416-Â649-Â1900 or visit EnerCare.ca for complete details.
26 august 2012
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April 2012 vacancy rates vary by region
In Winnipeg the vacancy rate rose from 0.7 per cent to 1.2 per cent, but in the main centres in Saskatchewan and Alberta vacancy rates fell. Not surprisingly, rents in the Prairies continued to lead the country following the region’s healthy economy.
CMHC issued its April rental market survey in June 2012. The ÀJXUHV VKRZ FRQVLGHUDEOH UHJLRQDO YDULDWLRQV In Atlantic Canada vacancy rates rose between April 2011 and April 2012, most notably in Saint John, NB, where the rate rose from 4.0 per cent to 8.4 per cent. Even though vacancy rates rose in most of Atlantic Canada, rents increased in a healthy rate. Rents are reported below for two bedroom apartments in the CMHC universe (i.e. in buildings of three units or more). Vacancy rate (all apartment sizes)
Avg. rent (2 BR) $
SMART
Vacancy rate
% Change in Avg. Rent
Apr. 2011
Apr. 2012
April 2012
St John’s, NL
2.0
3.3
808
7.4%
Halifax
2.8
3.2
926
3.0%
Moncton
4.1
5.0
721
2.9%
Saint John, NB
4.0
8.4
688
4.9%
Vacancy rate
Avg. rent (2 BR) $
Apr. 2012
Apr. 2012
Quebec City
1.0
0.7
725
0%
Montreal
2.5
2.2
708
1.7%
Ottawa
Avg. rent (2 BR) $
Apr. 2011
Apr. 2012
Apr. 2012
1.8
2.1
1,104
Apr. 2012
Apr. 2012
0.7
1.2
901
5.4%
Saskatoon
3.4
3.1
976
2.7%
Regina
0.7
0.6
948
5.2%
Calgary
3.4
2.5
1,113
5.0%
Edmonton
4.7
2.7
1,036
2.2%
Avg. rent (2 BR) $
Apr. 2011
Apr. 2012
Apr. 2012
Vancouver
2.8
2.6
1,210
3.0%
Victoria
2.7
3.5
1,046
1.6%
Vacancy rate (all apartment sizes)
% Change in Avg. Rent
April 2011
April 2012
Halifax
2.8
3.2
Montreal
2.5
2.2
Ottawa
1.8
2.1
3.2%
Toronto
1.6
1.5
1.9%
Winnipeg
0.7
1.2
5.4%
3.2%
Calgary
3.4 4.7
2.5 A
% Change in Avg. Rent
SMARTER
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Toronto
1.6
1.5
1,164
1.9%
Edmonton
Hamilton
3.5
2.9
876
1.9%
Vancouver
2.8
2.6
Kitchener-Waterloo
1.8
2.0
904
1.9%
Canada-wide
2.7
2.5
3.7
896
1.4%
Windsor
9.4
7.7
770
1.4%
Sudbury
3.1
3.1
891
0%
London transfers 4.7 more data
% Change in Avg. Rent
Here is a summary of the vacancy rates in the main markets across Canada.
The vacancy rate also dropped across Ontario moving to 2.3 SHU FHQW IURP SHU FHQW LQ $SULO DOWKRXJK 2WWDZD DQG Kitchener-Waterloo moved slightly in the opposite direction. Vacancy rate
Ap. 2011 Winnipeg
Vacancy rate
% Change in Avg. Rent
Apr. 2011
% Change in Avg. Rent
In Vancouver and Victoria, British Columbia, the vacancy rate rose. Outside of Vancouver, which saw healthy rent increases, British Columbia experienced relatively low rent increases.
In contrast, the average vacancy rates fell in the main rental markets in Quebec. However the availability rate rose in both of those markets (from 2.8 to 4.0 in Quebec City and 4.3 to 4.6 in Montreal), which may explain an unimpressive increase in rents.
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Avg. rent (2 BR) $
2.7
3.0%
Utility submet 2.2%
CMHC also provides data for many smaller centres in the April report. However, for detail within cities, the next report will be the October data to be issued in December 2012.
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