On November 12, 2024, France-Élaine Duranceau, Minister responsible for Housing, met with many rental housing partners, including the Association des Propriétaires du Québec (APQ), to discuss several issues and future solutions.
Three themes were put forward:
• Theme 1: Financing for Development
• Theme 2: Sustainability of the rental stock
• Theme 3: Ecosystem Performance for Better Services to Citizens
For rental property owners, the theme of the sustainability of the rental stock has the most impact on the future of the stock.
6 possible solutions have been put forward
1- Interest rates:
Many rental housing owners have seen the profitability of their building wiped out by the increase in their mortgage payment with the rise in interest rates, even though the method of setting rent does not take this into account
2- Reducing construction costs:
Construction and renovation are expensive. There is a demand for affordable housing, but the costs of materials and labour are very expensive to keep up with.
3- By easing regulations and speeding up processes:
Many real-estate projects do not materialize because the processes to obtain the building permit are long and the documents requested slow down the approval. Moreover, each city and each district has its own administrative process.
4- Promoting rent supplement programs (personal assistance):
Many tenants do not have access to low-income housing because they do not meet eligibility criteria such as maximum income, minimum age, value of property, physical or mental disability,... It is therefore preferable to provide personal assistance, an allowance that is more extensive than what is currently offered. This will give tenants more flexibility and tools.
5- Review the criteria for setting rent in general:
The real problem remains the outdated rent-setting system that cannot allow landlords to make a return on their work and investments. There needs to be an in-depth overhaul of the rent increase system because rents must reflect the work carried out and be able to spread these increases over several years if the amount is too high.
6- Encourage energy-efficient renovation:
More subsidies will be needed to achieve a common good objective: reducing GHG emissions and improving the energy efficiency of the building stock.
The Association des propriétaires du Québec (APQ) continues to promote positive changes to the rental world. We will keep you informed of new meetings, even in the hope of a new rent-setting method!
Minister Duranceau meets with rental housing partners
