'Unfair to landlords': Confusion, concern surround Windsor’s rental licencing pilot project

More than 900 people have signed a petition calling on Windsor, Ont.’s new residential rental licencing by-law to be revoked.

“We think this is unfair to landlords,” said property owner Frank Lin.

By May 31, owners of rental properties in Ward One or Ward Two that contain four or fewer units must apply for a rental licence for each unit they rent. The city aims to improve the safety of rental housing with the new by-law.

However, the cost to obtain a licence is too high, according to a growing number of landlords.

The licencing fee is $466 for the first year and $275 for renewals. Property owners said the costs add up to over $1,000 when you factor in the extra fees associated with obtaining inspections.

“That's a big burden for me with high inflation and high interest rates. I don't think I'm in a position to absorb the cost upon myself,” said Lin.

Lin would like to see the city subsidize the cost for licencing, considering it is a pilot project.

“Tenants are already complaining that rent is too expensive for them. After implementing this new by-law, we believe that problem will worsen. The landlords will pass on those costs to the tenant,” said realtor Johnny Zhuang.

The city believes the licencing fee is reasonable.

“All licence fees are based on cost recovery. That's the cost for the city to perform those inspections and administer the licencing program,” said Craig Robertson, Windsor’s deputy licensing commissioner.

To secure a licence, property owners will need to take the following steps:

• Complete a licence application form
• Confirm ownership and show proper insurance
• Provide a local contact for the unit
• Show that the unit meets legislated requirements, including building code, fire code, and electrical safety standards

Marda Management said it is “impossible” to meet those requirements by the May 31 deadline.

The property management company is having difficulty finding licenced electricians to complete the electrical safety standards.

“We’ve actually have heard from a number of electrical contractors in the City of Windsor that they're unprepared and unwilling to conduct these inspections,” said Marla Coffin, Marda Management CEO.

Coffin believes the by-law will result in lower vacancies in Windsor’s already low-stock rental market.

“There are landlords who are speaking actively about selling their home,” said Coffin.

Realtor Johnny Zhuang said he has been bombarded with calls from concerned clients.

“They told me they were very upset when they received a letter from the city saying they are going to implement this new by-law in a very short notice,” said Zhuang.

He would like to see the city hold a public hearing as soon as possible to address the concerns from landlords and tenants.

By-law enforcement staff will focus on education and outreach prior to the application deadline. Officers will then shift their activities to enforcement efforts focused on unlicensed properties starting June 1.

“We want to work with landlords. The idea here is not to shut anybody down or to cause problems. We're just more concerned about what is the housing stock out there,” said Robertson.

Additional information and links to application forms are available on the city's RRL website.