Monday Morning Quarterback: The Renters Bill Of Rights
You know that saying about the slow car-wreck?
You just can’t look away.
Can you?
Then sometimes, you almost anticipate the car-wreck, and morbidly (if this is an analogy…) prepare yourself for the spectacle.
That’s how I’ve felt about the 2024 national budget for the last few weeks, and while the budget won’t be released until April 16th, I’m already anxious about it.
I want to try not to make this blog post political since it’s supposed to be about the newly-announced Renters Bill of Rights. But I personally believe that the country is far worse off in 2024 than it was in 2015 and that this government’s attempt to “fix” the country is quite humourous since I would gladly take Canada, 2015 over Canada, 2024 any day of the week.
I mean, we changed the lyrics to Oh Canada, from “in all thy sons command” to “in all of us command.” Yes. We did that. THANK GOD! How did we ever manage before?
Almost nine years of this stuff.
Plus, destroying the country economically. Yes. We did that.
The Liberals are going to lose the next Federal election. Yes. We know that.
But in the meantime, they still have about nineteen months to implement policy, enact change, and of course – spend money! I shudder to think what the government will do in order to “win voters” for 2025, and it’s all going to start with the 2024 national budget in two weeks’ time.
I mean, Canada’s national dental plan is “free” except that it’s not. The plan will cost $40 Billion and that money will be found somewhere. But so many Canadians don’t realize that when the government puts a dollar into your right pocket, it’s only after they took a dollar from the pocket on your left.
Alas, the 2024 national budget.
What could they possibly come up with?
How about a program where the federal government helps home-buyers by providing money for a down-payment, and then shares equity in the home?
Oh…..wait….about that…
I have yet to see a good idea from this federal government when it comes to anything housing-related, and while I fear how creative they’ll get when it comes to out-of-control spending and giving money away in the upcoming budget, I know for absolute certain that they will try to buy votes and good favour with new public policy.
Repeated attempts to “fix” the housing market have either provided zero results, or worse – backfired.
But a government that continues to tell people that they can have everything and anything is only digging itself, and the country, an even deeper hole.
As is often the case with federal budgets, the government is starting to make announcements in advance of the budget release, and we saw Justin Trudeau’s first big announcement last week.
“The Renters Bill of Rights”
It sounds fantastic.
And since so many people in this country rent, “nearly two-thirds of young Canadians,” according to Mr. Trudeau himself, just the concept alone of a “Renters Bill of Rights” is surely going to resonate with renters.
But here’s the problem:
There is zero substance to this Bill of Rights and it will have zero impact.
In fact, it will have less than zero impact, since it will undoubtedly create more government jobs, departments, and bureaus, and necessitate more studies, reports, commissions, and findings, all of which will cost money and be paid for by tax dollars
If you want to watch two minutes of a man with a below-average IQ, who schmoozed his way into the highest office in Canada, speaking utter nonsense that should insult your intelligence, then watch this:
For those who can’t stomach the idea of another two minutes of this guy, don’t worry, I’m going to transcribe below.
He opened by pandering to young people, which he needs to do, in order to keep the party alive.
Then he gave us the first piece of nonsense in a long string of pieces of nonsense:
“So, today, we’re announcing new protections for renters and new pathways to home ownership.”
Make no mistake – there are no “protections” for renters in what he’s about to describe, but my issue isn’t with that bit, it’s with the concept of “new pathways to home ownership.”
This government continues to make promises it could never keep.
This government continues to tease people into thinking they can have when they surely never will.
The entire country would be better off if somebody in government, regardless of the party, simply told the truth and said:
“Future generations will not be able to own homes at anything close to the same rate as past generations. It’s not a reality.”
But nobody is going to say that, regardless of the political party.
As a result, when people hear Mr. Trudeau or anybody else suggest there are “new pathways to home ownership,” they get excited. How can they not? After all, these are our elected officials! They serve us! Why would they be anything but truthful?
The problem is: this Renters Bill of Rights will do nothing to open new pathways to home ownership, and it ignores the true problems that exist in our housing market, as does every piece of public policy.
According to Mr. Trudeau, there are three major pieces of this Renters Bill of Rights, which he announces after mispronouncing several words…
The first:
“We’re going to create a nationwide standard for lease agreements.”
This solves nothing.
In fact, it merely muddies the water.
In my line of work, when we submit an offer to lease on behalf of a tenant-client, or receive an offer to lease on one of our landlord-clients’ properties, it’s usually on the standard Ontario Real Estate Association forms. There is nothing wrong with these forms, and they serve to protect both the interests of tenants and landlords. The “protections” are only as good as the individuals working with the forms, however, since those protections are typically in the form of clauses added to the schedules.
Now, back in 2017, the provincial Liberal government had the same idea as Mr. Trudeau, except they had the idea seven years earlier. Where is my “shrug” emoji? Damn, can’t find it..
The “Ontario Standard Lease” was introduced and served as a secondary document that we had to fill out after we had already signed the OREA “Offer To Lease.”
All this document did was confuse the parties involved and risk certain portions of one document contradicting certain portions of the other document.
And again, I would suggest that these documents are only as good as the people who are working with them, so a third standard document, from our federal Liberals, wouldn’t be reinventing the wheel.
Now, I have to ask: is the federal government out of its jurisdiction here?
Dare I say, yes, they are.
Since rental legislation falls into provincial territory, then the federal government would need to work with, or obtain permission from, the very provinces that it’s attempting to usurp.
Ontario Premier, Doug Ford, has already suggested he’s not in favour of this idea, calling it “jurisdictional creep.”
Unfortunately, some of the newspapers are suggesting that Doug Ford “doesn’t want to help renters,” which is so incredibly misleading, it borders on propoganda.
As for the second point of Mr. Trudeau’s announcement, it’s even more ridiculous than the first:
“We’re going to give renters a clear picture of apartment pricing history so they can bargain fairly.”
This makes zero sense.
Ask your father what he paid for his first house in 1988. Go on. Ask him.
But then turn around and ask me, “Why does this matter?”
It doesn’t.
But do you know what else doesn’t matter a lick?
Young renters, Billy & Susy, knowing that the apartment they’re competing for was leased for $1,750 in 2017.
Yes, I said “competing for,” since that’s a reality in many markets and in many major cities. This also underscores the real problems in our country’s housing market, which all of the Liberal policies conveniently ignore.
But in the event that there isn’t competition for a rental, whether it’s a condo, a house, or an apartment, how does Billy & Susy knowing the rental history help them?
Landlord: “I’m asking $2,200.”
Billy & Susy: “This was leased for $2,100 two years ago by the previous tenant.”
Landlord: “And?”
Billy & Susy: “So we want to lease it for $1,900 because we’re ‘bargaining,’ like our Prime Minister told us to.”
Landlord: “I have to go feed my cat….”
There’s a lesson in “the free market” for the two-thirds of young Canadians who rent.
The average rent in Canada increased approximately eight percent last year, so why does Mr. Trudeau think that 2021’s rental prices are relevant in today’s market?
This feels like a man who is completely lost. Completely out of touch with not just the reality of our housing market, and not just the reality of our country, but reality in general. It’s like he has zero business acumen whatsoever.
The vacancy rate in Canada is approximately 1.5%, so who does Mr. Trudeau think that renters are “bargaining” with?
How in the world is this man at the helm?
How in the world are more people not frustrated with government?
The third point of Mr. Trudeau’s announcement is possibly the most ridiculous of the three, but also the most misleading, since it’s seeking to lay “blame” for lack of affordability in all the wrong places:
“We’re going to help you make your rent count towards you becoming a home owner. We’ll do that by making sure that the fact that you pay your rent every month, which remember, is a pretty significant amount of money, that that payment, and that demonstrated reliability that you’ve shown over months and years is taken into account when you apply for a mortgage. We’re going to amend the Canadian Mortgage Charter and call on landlords, banks, and credit bureaus, and others, to make sure that your rental history is taken into account in your credit score. This will make it easier to qualify for a mortgage or even qualify you at a lower rate. And just think about all the other things that will come from having a better credit score. A loan to help you start a small business, for example.”
Wow.
Alright.
If you’re like me, maybe you need a minute to unpack all of this, gather your thoughts, and figure out where to start.
I’m trying to find the right words to describe this, but there are so many that come to mind.
How about “misleading?” That works.
I might say “irrelevant.”
I could say “nonsense” to sum up the entire paragraph nicely.
But what really bothers me about that paragraph is the excitement that some Canadians might feel when reading it; when reading the incorrect and misleading words that, in my opinion, illicit “fantasy.”
Yes, that’s the word I want. Fantasy.
Mr. Trudeau is suggesting that home ownership is, at least in part, unattainable because renters’ monthly rent payments don’t count toward their credit score.
I am not the Prime Minister. But I’m also not a university drop-out and former drama teacher, so maybe, just maybe, this qualifies me to explain the following important point:
Renters are having trouble buying homes because homes are expensive!
Right.
Renters aren’t having trouble buying homes because of their credit scores, but rather because homes cost a lot of money!
Now, if we want to break that down further, we could suggest:
1) Homes are expensive.
2) There aren’t enough homes.
3) There aren’t enough rentals.
4) The population is growing at a far greater rate than the housing stock.
5) Interest rates are high.
And so on.
Now, let’s say, just for argument’s sake, that Mr. Trudeau’s Bill of Rights is successful in lobbying banks, credit unions, and landlords, to “count” a renter’s payment history toward their credit.
Let’s now ask a few questions.
Does this help increase a renter’s down payment?
No.
Does this help increase a renter’s after-tax dollars that would service the monthly mortgage payment?
No.
Does this lower the price of real estate in Canada?
No.
Does this increase the housing stock in Canada?
No.
Okay.
So then what in the world is the point of this?
What’s the point of any of this?
The irony is, of these three points that Mr. Trudeau announced, none of them are directly within the federal government’s control.
In order to introduce a standardized lease agreement, the federal government would need permission from the provincial governments. And the last time I checked, provinces are opting out of federal legislation, left, right, and centre.
In order to create a database of “rental pricing history,” the federal government will not only need cooperation from landlords, but would have create a whole new department in the federal government. Maybe this is another ArriveCan waiting to happen? Or Phoenix Pay system?
And in order to ensure rental payment history is included in credit scores, the government would need to “lobby” credit unions and banks, or as Mr. Trudeau always says, and said above, “call on” these banks and credit unions. That’s what this government says when they want people to do something; like Chrystia Freeland “calling on” Canadians to “unlock” their savings during the pandemic.
Damn.
I said I was going to try not to make this political.
It’s an impossible task, and I’m sorry.
I realize that many of you support the Liberal party, either at the provincial level, the federal level, or in general.
I’m sorry. I really am.
The first vote I ever cast in a federal election was for the Liberals. And the second vote too.
Some of my most well-known blog readers are staunch Liberals, and I’m sorry if you feel that this is unwarranted. But I don’t think it’s incorrect.
I love my country.
I have a red Canadian maple leaf tattooed on my back. I got that in 2001.
But I don’t love my country as much as I used to, and maybe that’s because I’m older, maybe that’s because I pay more attention to politics and public policy and am more informed, or maybe it’s because I don’t like what’s happened over the past nine years.
And there’s one other thing that I’m not: unintelligent. So when I see what this government is doing – in my chosen field of expertise, and I can expertly deduce and explain how this is a complete hoax, it truly saddens me.
Regardless of the government, the party, the leader, the ‘name’, or the ideology, I just wish that we had better ideas than this.
Anybody care to share some optimism on an otherwise cheerful Monday morning?
Because as you can clearly see, I could use it…