Good news is around the corner for Canadians who are renting their homes. Recently, Prime Minister Justin Trudeau announced that the upcoming federal budget will be specifically tailored to protect younger renters. As the cost of renting surges higher throughout the country, many people are excited for the opportunity to be recognized. However, many Canadians are curious if these changes will be enough. Luckily, we’ve got all of the information we know right now regarding the upcoming Renters’ Bill of Rights.
What is Canada’s Renters’ Bill of Rights?
To understand the Renters’ Bill of Rights, we must first discuss what it entails. This Bill includes a national standard lease agreement that will require landlords to disclose a unit’s pricing history. This will allow both upcoming and current tenants to negotiate their rent. Furthermore, Trudeau states that the government will create a $15-million fund for provincial legal aid organizations. This will help tenants fight landlord abuse and “renovictions.” This is when a landlord evicts a tenant by stating significant renovations are needed, resulting in evictions.
Statistics Canada states that younger Canadians face greater challenges when it comes to renting and shelter costs. In fact, nearly two-thirds of Canadians ages 15-29 rent their home. This resulted in more income spent on rent than those in the older demographic in 2021. The Liberal party is also proposing a change to federal rules, making timely rental payments count towards your credit score.
“If you look at someone who pays a $2,000 mortgage, they’re getting recognition and credit for that from their bank as part of their credit score,” the Prime Minister said. “But if you’re paying $2,000 a month on rent, you get no kudos.”
Will the new Bill of Rights help renters?
According to Steve Pomeroy, a housing policy research consultant, the proposed bill of rights is only “an attempt to appear to be doing something.”
“I don’t think, in practical terms, it can really be implemented in any way that’s going to have a meaningful impact on rental affordability,” he tells CBC News. However, other people see it as a decent start that can eventually evolve into something more helpful.
“There are some hints in this announcement that the government could be headed toward a more comprehensive bill of rights,” says Dale Whitmore, Director of Policy and Law Reform at the Canadian Centre for Housing Rights. “It’s important that they take this process seriously and really develop something that functions as a proper Bill of Rights.”
Will this help record low rental vacancies?
The Canadian Mortgage and Housing Corporation found that landlords across the country faced record-low vacancy rates, as well as record-high rent growth in 2023. Pomeroy states that forcing landlords to disclose pricing history will likely have little impact on lowering rental prices.
“The question then becomes, is this an area that the federal government should be getting into, to the extent that consumer protection, property rights, rent regulation are all areas of exclusive provincial jurisdiction,” Pomeroy says. Whitmore states that things look different in provinces such as Manitoba, Quebec, and P.E.I; provinces that have protections against “unreasonable” rent hikes when one tenant leaves and another moves in. “Such transparency can be hugely helpful,” he says…”so that renters know what rent increases they’re looking at.”
However, most provinces have no limits on hikes between tenancies, and Ottawa has yet to have any jurisdiction when it comes to adding them. So all in all, this Renters Bill of Rights won’t move the needle much as a standalone effort.
What are the next steps?
Typically, the government doesn’t discuss what an annual budget consists of. However, due to the announcement being made weeks before the government’s next budget release, we can see the specifics on April 16th. This is part of the Liberal government’s new communications strategy of releasing tidbits from the budget beforehand. Trudeau and the Liberal government are expected to make more announcements until the budget is fully released on April 16th. He mentioned that “fairness” will be a key component.
“For Canada to succeed, we need everyone to succeed,” he tells CBC News. “Over the coming days and in the April budget, we are going to launch a no-holds-barred plan to wrestle down the cost of owning and renting a home,” stated Chrystia Freeland, the Minister of Finance.
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