Landlord group loses bid in rental licensing dispute
A Windsor landlord group's months-long court battle against a city bylaw to license small-scale rentals has failed.
In a decision released earlier this week, Ontario Superior Court Justice Kelly Gorman concluded the city's residential rental licensing bylaw was passed in good faith. She dismissed the challenge.
Steven Pickard, lawyer for Windsor Housing Providers Inc., was unavailable for a phone interview on Wednesday. In a written statement to the Windsor Star, he said his client is “considering all options, including an appeal.”
“The board has not yet had a chance to meet, but is planning on doing so in the coming days to evaluate next steps,” Pickard said.
In February 2023, Windsor council officially proclaimed the bylaw, requiring property owners in Wards 1 and 2 — neighbourhoods around St. Clair College and the University of Windsor — to license rentals with four or fewer units in an effort to increase rental safety and bolster proactive property standards enforcement.
About three months later, a group of about 200 landlords launched a legal challenge against the bylaw, arguing it was illegal and the city didn't have the authority to enact it.
Amid the proceedings, the city agreed to pause rental licensing enforcement efforts but continued to accept applications, perform unit inspections and hand out licences.
Ward 2 Coun. Fabio Costante, who has long pushed for the rental licensing, told the Star he's “happy” to see the pilot fully resume.
“I would argue that the residential licences are needed now more than ever, now that we're going through this housing crisis,” Costante said. “You're seeing congregate living happening at rates that we've never seen in the past.”
Over the last several months, residents have sent Costante many listings for rental units with pictures of mattresses on the ground in basements with low ceilings.
In March 2021, council voted to try the licensing system as a two-year pilot in Wards 1 and 2 in response to more than a decade of complaints about vulnerable people crammed into unsafe rental housing. The pilot also aims to enhance proactive property standards enforcement efforts.
Data gathered during the pilot study is expected to help council decide whether to end the program or extend it citywide.
Council officially proclaimed the bylaw in February 2023.
Before the appeal, which was filed last spring, the city gave landlords three months to apply for licences, one for each unit.
The rental licensing fee is $466 upfront and $275 for subsequent renewals. To secure a licence, property owners must perform several steps: complete an application form; confirm ownership; show proper insurance; provide a local contact for the unit; provide a police record check; and show that the unit meets legislated requirements, including building code, fire code and electrical safety standards.
Craig Robertson, city manager of licensing and enforcement, said the city has received roughly 750 applications for residential rental licences and has issued about 450. The remaining 300 or so either need to be inspected or are awaiting landlord compliance.
Now that the court challenge has been dismissed, bylaw officers can use enforcement measures. However, Robertson said the city will continue to focus on educating rental owners “and encourage people to voluntarily comply,” rather than rely on punitive enforcement.
Although enforcement was on hold, Robertson said the city continued to collect data for the licensing pilot. He does not foresee a need to extend the pilot beyond its expected February 2025 end date.
He intends to report back to city council “very soon” with an update, that will include data collected on building and fire code compliance.
In a statement, the city said it will continue to administer the program “as intended.” Details on the pilot study can be found on the city's website, cityw.ca/rrl.