With a higher vacancy rate than recently seen, it is important to stay calm and take the time to analyse the situation. There are cycles in real estate just like in any other industry, and when the market is relaxed, it’s the time to review our approaches towards our clients (tenants) and have them validated.
In 2007, a new balanced rate for the Montreal region was established (at 3%) and the trend i sis climbing if we rely on Canada Mortgage and Housing Corporation (CMHC) figures.
This state of affairs must be taken into account by our elected officials who must not give in to social pressure groups representing tenants who repeatedly solicit the building of new social housing. In this regard, we maintain our position of assisting a tenant, who is experiencing financial difficulties, with money so they can find housing that can accommodate them in the private rental market.
Capitalism and landlords seem to be the cause of all our ills according to social interest groups. Researchers at the IRIS (Institute of socio-economic research and information) (Institut de recherche et d'information socio-économiques) even reiterated before July 1 that the housing crisis had been provoked by private promoters who were seeking profits by building condominiums, while suggesting to the government to hold a moratorium to block this type of construction. This type of statement doesn’t surprise us.
Our government lost a great opportunity recently by not presenting – although promised – a Bill that would have allowed the procedure to be simplified before la Régie du logement. The government should have proceeded in a way to accelerate cases of non payment of rent. We will still have the opportunity to present to the Minister of Housing the importance of forging ahead wit this reform.
The housing market follows its own path and landlords have begun to give free months’ rent or other goodies to attract new tenants. In this regard, we recommend that you be careful and cautious. If you have any concerns about whether this free month of rent will then turn into a free month of rent every year at lease signing time, contact our legal service.
As we are returning to vacancy rates seen in the 1990’s, tenants will have their choice of units. We will be proactive on the matter to help you meet this new reality.