Prime Minister Justin Trudeau has unveiled plans to introduce a Renters Bill of Rights in Canada as part of the upcoming Budget 2024, speaking from Vancouver today.
The proposed Canadian Renter’s Bill of Rights aims to address several key issues in the rental housing market:
- Price Transparency: Landlords will be required to disclose a clear pricing history for rental units, providing newcomers with a better understanding of fair rental rates and empowering them in negotiations.
- Renoviction Protections: Consequences will be introduced for landlords engaging in renovictions, where tenants are evicted under the pretext of renovations only for the unit to be rented out again.
- Standard Lease Agreement: A nationwide standard lease agreement will be established to ensure consistency and fairness in rental contracts.
- Credit Score Integration: On-time rent payments will be factored into individuals’ credit scores, enabling them to build credit and potentially qualify for mortgages at lower rates.
- Tenant Protection Fund: A $15 million Tenant Protection Fund will be launched to provide legal aid and support for tenants facing unfair rent increases, renovictions, or problematic landlords.
The PMO also announced plans to amend the Canadian Mortgage Charter, urging landlords, banks, credit bureaus, and fintech companies to consider rental history in credit scoring.
Renting in Canada has become increasingly expensive, with average rents reaching record highs, particularly in urban centers like Vancouver and Toronto. Newcomers to Canada are disproportionately affected by high rent costs, with statistics showing that a significant portion of newcomers rent their accommodation and struggle with housing affordability.
To alleviate these challenges, the federal government has implemented various measures, including the $14 billion Affordable Housing Fund to support new rental housing construction and repair existing housing. Additionally, incentives such as the removal of the Goods and Services Tax (GST) for developers aim to encourage the construction of more rental units, including those for students and seniors.
The introduction of the Renters Bill of Rights represents a significant step towards enhancing tenant protections and promoting housing affordability for all Canadians, including newcomers.