The Canada Mortgage and Housing Corporation just released a report detailing its findings from the latest National Housing Conference.
Among the issues discussed by housing experts was the rental housing market. CMHC concludes that it’s views on renting may be outdated — and it’s time to “rethink” rental housing.
Renting is on the rise, according to the report, and that is impacting homeownership numbers. Where renting was once a temporary stage before purchasing a home, more people now are renting as a permanent housing solution.
Yet, according to CMHC research, 80% of rental vacancies occur because tenants becomes homeowners. As the number of homeowners decreases, current rental inventory cannot keep up with demand.
Researchers point to “amateur landlords” – defined as “people with capital but no training or expertise that supports responsible landlord practices,” as an impediment to homeownership.
According to these experts, amateur landlords are driving competition for home purchases which are then converted into rentals. The report links amateur landlords to discriminatory practices, creating a barrier to housing for vulnerable populations.
Experts also found a rise in evictions and point to renovictions — forcing tenants out to raise rents — as the apparent reason for the increase. That, experts say, is creating a more precarious rental market.
The report concludes with a two-fold strategy for “rethinking” the rental market:
Make renting better for individuals and households; and
Support other forms of tenure “that offer the capital accumulation, security of tenure and property rights associated with conventional homeownership.”
Provincial governments likely will consider these finding as they tackle their own housing issues. It is important for landlords to find a voice, so their concerns are considered as well.
For example, the rise in evictions also may be impacted by an increase in tenants who fail to pay rent. According to the Ontario Social Justice Tribunal 2018 report, 60% of landlord applications for eviction were for nonpayment.
When it comes to rental housing issues, tenants tend to be more outspoken, but a balanced approach to housing must take into account the needs of both landlords and tenants. That’s why it’s a good idea to support your local landlord association — because there is strength in numbers.
This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).
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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.