It is essential to promote a balanced view and a fair representation of the rental markets in Montreal. Unfortunately, news media outlets have recently been disseminating fake news via pro-tenant organizations giving the impression that rental prices are incredibly high. The reality is that there is no crisis of affordable housing in Montreal - if we take a global perspective, Montreal is one of the most affordable cities to rent in the world. With rising real estate prices and rental rates in this Covid-19 pandemic, here is what Montreal landlords need to know about in one of Canada's largest rental markets.
Scarcity of Affordable Rental Units in Montreal is Fake News
As the global battle with Covid-19 and the latest variants continues, the overall vulnerability of the housing market in Montreal has remained moderate. Here is a snapshot from the Rental Market Report Montréal CMA based on the primary rental market by bedroom type, according to the latest data released from the Canadian Mortgage and Housing Corporation (CMHC), January 2021.
One needs to consider that the results for the Island of Montreal can conceal the actualities of certain sectors. For example - the zones of Sud-Ouest, Lasalle, and Verdun are posting vacancy rates of around 0.2%, while the vacancy rate of Saint-Laurent is 8.6%. The average monthly rent for a two-bedroom apartment in Montreal is $903, with less expensive rents in the suburbs coming in at $878. According to the data from statistical surveys of tenant turnover rates, the percentage is at 11.6% in the sectors of Montréal, Laval - North Shore, South Shore, and Vaudreuil-Soulanges. Montreal's tenant turnover rates are lower than the national average of 14%. Likely, diminished international migration, as well as fewer international students and temporary foreign workers have impacted vacancy rates. In all probability, the arrival of tourist rental apartments in the long-term rental market has also had an affect in Montreal.
Rent Control in Montreal
Historically, Montreal is blessed with a stable population, a healthy housing supply, and many investments from federal and provincial governments. As a result, rent prices in Montreal have generally remained low, and are still very low compared to North American standards. The city of Montreal first enacted rent control policies in 1979 to protect tenants and provide economists with another long-term experiment about the impact of rent control on housing affordability. In Quebec, there are many regulations when it comes to renting a property. The Tribunal Administratif du Logement is a governing body whose primary purpose is to defend the tenant's interests, while establishing rent control regulations to assure reasonable rents. The two main types of rent control for landlords are:
a. With each new lease, the landlord must provide the tenant with the previous rental agreement amounts. With that information, the tenant can choose whether or not to rent.
b. With every rental increase to a tenant, the landlord is obligated to justify the rental increase financially.
Moreover, with all the pro-tenant laws, these processes with rental increases and tenant issues can be long and complicated when dealing with the Tribunal administratif du logement. At Immeubles Centraux, we are good at cutting through the bureaucracy and getting our property owners results.
Immeubles Centraux is a leader in property management solutions since the early 1990s. Our philosophy of managing properties works - it is effective and reliable. Do you need help to make sure your building is being managed effectively? We offer support and guidance while providing innovative solutions to ensure your financial bottom line is being met.
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