Tags: vacancy rates
Rental Crunch – feles non grata
By reed on Nov 3, 2008 | In Community Affairs
Link: http://victoria.tc.ca/~reed
The fact that a rental crunch exists in Victoria is not news. At a vacancy rate of approximately 0.3% we have earned the dubious distinction of having the tightest rental market in Canada. According to CMHC, and excluding vacancies in secondary suites, the CRD’s rental stock as of April 2008 stands at 23,367 units. In the Saturday, October 25, 2008 edition of the Times Colonist, there were 66 unfurnished apartment vacancies advertised (0.28%): of these, 45 (68%) specifically prohibited pets; 7 (11%) would consider a small pet; 14 (21%) did not specify whether or not pets were accepted. It is an unfortunate reality that in a virtually stagnant rental market, apartment seekers who happen to be pet guardians are differentially impacted.
According to the BCSPCA, 450 cats and dogs arrive annually at the Victoria SPCA shelter as a direct result of “no pets” clauses incorporated into standard leases. In BC, “more than 2,500 companion pets have, to date, been surrendered as a result of their guardians being unable to find housing that allows pets.”
A poll conducted for the BCSPCA by McIntyre and Mustel Research in 2002 found that 79% of BC residents are in favour of legislation that allows pet guardians the right to keep companion animals. Legislated approaches have been implemented in Ontario and New York City, where blanket “no pets” policies have been quashed. However, Individual landlords in Ontario still retain the right to restrict tenancy on the basis of pets. Of the 800,000 annual landlord-tenant disputes in Ontario after the “Fluffy Law” was passed in 1990, for example, only 1% of them were pet related.
Prior to 2004, the Residential Tenancy Act in BC (RTA) was much more flexible, allowing landlords the option to specify pet-related terms in their leases. However, when the RTA was amended in 2004 to allow pet deposits as a means to encourage more landlords to accept pets, it also, and perhaps inadvertently, clarified a landlord’s right to deny pets in rental units.
A number of non-legislated approaches have been successful, including the San Francisco SPCA Open Door program which educates landlords and tenants, provides mediation, and guarantees up to $5,000 against pet damage caused by a pet adopted from the SPCA. During the program’s many years of operation, no landlord has made a claim against the fund, and the percentage of “pet friendly” apartments has increased to 57% from 11%.
Pet insurance is also an option. In addition to the pet damage deposit of up to 50% of the monthly rent, additional third party property damage insurance is available, usually providing an additional $700 of coverage for $14.95 per month. It may also be possible to establish a third party escrow account. Pet resumes are a must.
The benefits of sharing one’s home with a companion pet are numerous and well documented. These benefits include reduced anxiety and depression among seniors, assisting children with the development of language skills, responsibility and self-esteem, and reduced health care costs. And according to the BCSPCA, tenants in pet-friendly units stay longer, averaging 46 months compared to 18 months for those in units that don’t allow pets.
Balancing the wants of responsible pet guardians seeking rental accommodation with the rights of property owners, those suffering from allergies, and those who for any other reason do not want to live in an apartment that accepts pets, is an extremely difficult task.
Property owners have a number of very legitimate concerns that include excrement management, destruction of property, noise, policing and enforcement, odours, aggressive behaviour, fleas and allergens. The issue of allergens, proteins that can trigger an allergic reaction that stimulates the production of histamine, is particularly difficult to address, since containing allergens to a specific suite in a multi-unit residential dwelling is impossible due to cross-migration associated with the ventilation of suites and common areas. Cat dander, which is typically 0.1 microns in size, can remain in the air, on furniture and in carpets for up to six months after the cat is removed. The only effective way to combat this is by using an air purification system that has an ionizer and HEPA filter combined.
Some of the blame for our current rental housing crisis can be directed at the federal government, who has been reluctant to amend changes to the Income Tax Act (1972) which effectively capped construction of new rental stock by categorizing apartment buildings as “passive” businesses, as they usually have fewer than five employees. By doing so, Revenue Canada has removed any incentive to reinvest in new projects, as property owners are required to take an immediate tax hit on the appreciation of their property value when they sell, while condominium and hotel developers, on the other hand, can rollover capital gains. There are a host of other factors that stifle construction such as no GST rebate for builders, inflated labour and construction costs, rent controls, and lack of “tax holidays” for apartment builders: The bottom line is that until it becomes economically feasible to build a rental apartment, it won’t happen any time soon.
In the James Bay and local area, pet-friendly apartments are located at:
121 Menzies Street
417 Superior Street
1233 Fairfield Road
Swiftsure Apartments, Rithet Street
101, 103, 105 Menzies Street
References
BCSPCA: http://www.spca.bc.ca
Pet Care Insurance: http://www.petcareinsurance.com
CMHC: http://www.cmhc-schl.gc.ca/
The Tyee: http://www.thetyee.ca
Youmens, Jason. Nowhere to Go http://mondaymag.com/articles/entry/nowhere-to-go/
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