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Landlords should be allowed to collect deposits in Quebec
by
Jimmy Kalafatidis
Quebec is the only jurisdiction in North America that does not allow landlords
to collect a security deposit from a tenant in a residential dwelling for
damages and/or lost rental income.
In comparison to Ontario a landlord is only allowed to collect last months
rent from a tenant who is moving in, the sum equivalent to one
months rent. As well the landlord is responsible for putting the
tenant's deposit in an interest bearing trust account, at an interest rate
of 6% and return the amount to the tenant when moving out if no rent balance is
owing.
In Alberta same but more, a deposit can be used for damages,
pet damages and non-payment Before entering the premise the landlord and
tenant must inspect the premise together write down the condition and
repeat when moving out.
So why does all of North America except for Quebec ask for a security
deposit? Simple it is to deter tenants from vandalizing and
not paying their rent. Yes the landlord in Quebec does have recourse at
the rental board to reclaim damages and rent loses. But when calculating
the costs to recover the monies owed it's just not worth
it. For example a $650.00 of non-payment of rent to recover could cost
$1000.00 plus, in lawyers, bailiffs, detectives, registered letter, and court
costs not including the landlords time. So in more cases then one the
landlords in Quebec accepts the loses and move on.
A myth perpetrated by tenant associations in Quebec is that the low vacancy
rates in Quebec are caused by poverty and not enough investment in social
housing by the government. This is false, the economy has improved and
incomes are up by 10-14 per cent. The number of people on social assistance has
dropped, cities like Montrealers are in much better financial shape
than 7 years ago."
One major reason for low vacancy rates are that the demand for housing has
gone up, but the supply is lagging. Why because Quebeckers don't
want to invest in the building of rental units because Quebec rental laws
punish landlords and favour the tenants.
Allowing landlords to collect a deposit in Quebec would:lower vandalism;
save taxpayers, landlords and tenants money on excessive court costs ( In 2003
Landlords asked the rental board for permission to recover rent and evict 45,631
tenants, up from 38,800 in 1998, total court costs about 40 million dollars
plus); lower criminal incidents which would save on police costs; boast revenues
in the construction industry which would help the overall economy phenomenally,
force tenants to re-examine their spending priorities, increase vacancies rates
which would increase competition and lower rents.
It's time Quebec examines the use of security deposits to make Quebec a more
responsible and more economically efficient province.