Real Estate — June 12, 2012Report on the Rental Market: The Association of Quebec Landlords (APQ) Notices a Stabilization of the Rental Market
MONTREAL, QUEBEC--(Marketwire - June 12, 2012) - The Association of Quebec Landlords (APQ) wants to react following the announcement of the results of the housing survey of the CMHC.
The vacancy rate did not significantly change: 2.2% in April, a drop of 0.2% compared to April 2011. But if certain CMAs (Census Metropolitan Areas) are looked at, it is noted that Sherbrooke and Trois-Rivières have the highest rates with 3.6% and 3.8% respectively.
The rents are on average at 677,00$, oscillating between 543,00$ and 731,00$.
"There has been a stabilization of the market during the last few years. The vacancy rate being low that leaves little margin, but in certain regions like Sherbrooke or Trois-Rivières the situation is more difficult for the owners, " says Martin Messier, President of the APQ.
Repercussions also from the student conflict to come
Moreover, this year, with the student conflict, the situation is likely to deteriorate in several cities like Montreal, Sherbrooke or Quebec.
The Association of Quebec Landlords (APQ) is worried about the re-letting of the dwellings rented by the students who gave their departure notice for June 30, 2012.
Indeed, several students having finished their session, or quite simply wanting to move on June 30 have delivered their notice of non-renewal of their lease to their owner. But with the student conflict carrying on, the students will not have finished their session on June 30.
"Certain owners had to make their provision by re-letting their housing on July 1. The owners are afraid to find themselves with students who do not leave their apartment on the date envisaged, " says Martin Messier, President of the APQ.
The APQ repeats that, with the risk to commit your responsibility towards the new tenant, it is important to do a regular follow-up with your current tenant who delivered to you his notice of non-renewal of the lease: address of forthcoming residence, the state of research of the new housing, precise moving dates, the hour of moving etc….
It is necessary to take action in favour of the rental market now
According to the table summarizing the variations of the consumer price index (CPI) on the cost of housing published this morning by the CMHC extracted from the data of " Statistics Canada ", it seems obvious that the rental market is in a situation which must be corrected without delay: the CPI shows the inconsistency between the increase in the expenditures connected to housing and the increases allowed!
According to the report, the CPI of the rent increased by 12,1% in 10 years (from 2002 to 2011) whereas the expenditure related to the exploitation of a building knew a significant rise:
- Taxes on land: 34.6%
- Mortgage interests: 10.8%
- Repairs at the expense of the owner: 20.2%
- Replacement costs 44.2%
- Insurance premiums of the owner: 70.1%
- Water, fuel and electricity: 36.6%
The annual inflation rate in Canada, which had reached a top of 12,5% in 1981, has stabilized itself on average at 2% since 1991.
"The owners have undergone for several years the negative effects of the method established in 1981 to set the increases permitted by the Régie du logement. The rental market is degraded because no incentive or legislative change comes to the support of the owners of residences which provide a roof for more than 1.3 million tenants,"says Martin Messier, president of the APQ.
"We must act quickly in order to put a term to this degradation of the profitability of the rental buildings if we want to be able to maintain our real-estate pool in an acceptable state,'' maintains the APQ.
Founded in 1984, the Québec Landlords Association (APQ) is the largest association of its type serving residential property landlords throughout all regions of Québec.
Martin Messier, president
514-382-9670 ext. 201
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