Brampton Pauses Rental Licensing Pilot Amidst Landlord Backlash

Less than a month after its launch, Brampton's Residential Rental Licensing pilot, aimed at addressing illegal lodging, has been temporarily paused due to concerns and backlash from landlords. The two-year pilot project, initiated on January 1, required property owners or landlords in certain wards to register with the city for renting out four or fewer units. The decision to pause the program comes after complaints from landlords and a significant online petition signed by nearly 7,000 residents.

Key Points:

1. Illegal Units and Overcrowding: The pilot program was initially introduced to combat the problem of illegal housing units, with Mayor Patrick Brown citing cases of overcrowded basements as a major concern.

2. Landlord Complaints:

Landlords expressed dissatisfaction with the program, particularly concerning the need to resubmit electrical and HVAC certifications. Concerns were also raised about potential penalties for tenants subletting their properties, especially those cases pending before the Landlord and Tenant Board (LTB) of Ontario.

3. Public Backlash:

The city took into account the feedback from an online petition signed by thousands of residents and numerous complaints and inquiries about the pilot program. These factors contributed to the decision to pause the initiative.

4. Program Adjustments: To address the concerns raised, the city plans to make adjustments to the pilot program. Changes include eliminating the requirement for criminal record checks, accepting property tax bills as proof of ownership, exempting condominium apartments or townhouses from requiring a business license, and extending the $300 annual fee waiver until June 30.

5. Limited Registration:

Only 29 landlords had registered with the city clerk under the pilot program before its suspension. Mayor Brown had previously mentioned concerns about an estimated 30,000 illegal units in the city.

6. Housing Affordability Crisis: Despite the backlash, some stakeholders argue that the pilot program is urgently needed, given the ongoing housing affordability crisis and complaints about illegal rentals. Proper incentives for landlords are seen as crucial for the program's success.

7. Council Concerns:

Two city councillors from wards involved in the pilot expressed concerns about not being consulted regarding the pause. They believe that the pilot should either include additional wards or be reduced to one ward for testing purposes.

8. Call for LTB Improvements: Due to delays at the Landlord and Tenant Board (LTB), some landlord complaints have not been addressed, leading to fears of potential penalties if they participate in the pilot program. City council has called on the provincial government to address the backlog of cases at the LTB.

In a surprising turn of events, Brampton's Residential Rental Licensing pilot program has been temporarily halted less than a month after its launch. The initiative, which began on January 1, was designed to tackle the issue of illegal lodging within the city. However, the decision to pause the program comes in response to a wave of backlash and concerns voiced by landlords.

The two-year pilot aimed to regulate property owners and landlords in five of Brampton's wards who rent out four or fewer units. Mayor Patrick Brown initially highlighted the program as a solution to address the growing problem of illegal housing units, citing cases of overcrowded basements and unsafe living conditions. Despite the program's noble intentions, it quickly faced resistance from landlords. Among the chief complaints were the burdensome requirement for landlords to resubmit electrical and HVAC certifications. Additionally, concerns were raised about potential penalties imposed on landlords for tenants subletting their properties, particularly in cases pending before the Landlord and Tenant Board (LTB) of Ontario.

The decision to pause the program was made after members of the city council requested it due to the increasing number of complaints from landlords. These concerns were further echoed by an online petition signed by nearly 7,000 residents, which called for a halt to the pilot program. The city acknowledged these grievances and is now working on streamlining the process by implementing several changes.To address the concerns raised by landlords and the petition, the city plans to make several amendments to the pilot program. These include eliminating the requirement for criminal record checks, accepting property tax bills as proof of ownership, exempting condominium apartments and townhouses from needing a business license, and extending the $300 annual fee waiver until June 30. ADVERTISEMENT

However, it's worth noting that despite the backlash, only 29 landlords had registered with the city clerk under the pilot program before its suspension. Mayor Brown had previously cited concerns about an estimated 30,000 illegal units in the city, indicating the scale of the problem.

While the pause in the program has been met with relief by some landlords, others argue that the pilot is crucial, especially given the ongoing housing affordability crisis and the surge in complaints about illegal rentals. Lashika Katyal, director of sales at SaveMax real estate, stressed the need to incentivize landlords properly.