Bill 39: Taxing vacant or underused housing: another obstacle for rental owners!
Montreal, November 2, 2023 --- The Association of Quebec Landlords (APQ) has just become aware of Bill 39, “An Act to amend the Municipal Taxation Act and other legislative provisions”, tabled by Madame Laforest.
At first glance, this bill appears to us to be a new brake on the rental market. The Government is tabling bills to change the rental world in Quebec, adding to the obligations of landlords. A major question is when will there be a major change to harmonize everything: in particular modernizing the method of setting rent?!
"This is an incongruity in our system: rather than encouraging year-round rentals or helping owners who lack funds to put housing on the market, the government continues to tighten the screws on owners in order to make the ownership of real estate more and more restrictive!” exclaims Martin Messier, president of the APQ.
This bill sets aside all the reasons why housing can be left vacant, in particular the costs related to work and renovation of housing which are often the main reasons why housing is not rented on the rental market. Many owners simply cannot undertake work because the return on investment is too low, banks or financial institutions do not lend with a return that is over more than 25 years.
In 2023, the rate taken into consideration for a rent increase for major works was 3.8%. The fact remains that it will take 26 years for a return on investment: $3.17 for each $1000.00 of work carried out.
Owners cannot accumulate obligations again and again without ever being provided with the necessary financial support!
The Association of Quebec Landlords (APQ) will take the time to study in detail the Bill submitted as well as the explanations and follow-ups of this bill in parliamentary committee.