The Saskatchewan Landlord Association (SKLA) is concerned with the provincial government’s decision to suspend evictions for non-payment or late payments of rent without providing renters with financial support such as a rent bank.
Justice Minister Don Morgan announced on March 26 that the Office of Residential Tenancies would suspend evictions during the coronavirus pandemic, with any hearings scheduled for non-urgent matters cancelled and to be re-scheduled.
“We are extremely disappointed that Minister Morgan would make an announcement like this without providing financial support to renters,” Hillary Sayed, SKLA president, said in a news release. “Without dedicated financial support to renters who are unable to pay rent, landlords in effect provide free housing, as they cannot evict renters who are in arrears or who withhold rent.”
Suspending evictions will create repercussions for the rental housing industry in the coming months, as renters may abuse the system and withhold rent since there are no longer any consequences, she continued. If the suspension continues for months, major financial pressures could jeopardize the industry.
There are fixed costs to provide housing, such as insurance, maintenance, and salaries of about 10,000 full-time employees who work in Saskatchewan’s rental housing industry, Sayed added. These costs will not disappear and must be paid by landlords.
The SKLA has not heard back from the ministry about this decision, but has heard from several landlords concerned about what an across-the-board eviction moratorium does to rental housing in the province.
Noel Busse, spokesman for the Ministry of Justice, told the Moose Jaw Express in an email that the provincial government took action to suspend evictions since it was concerned that evicted tenants would be unable to self-isolate or physically distance themselves from others. This could potentially increase the risk of transmitting or contracting the coronavirus.
“This action doesn’t absolve tenants of the need to pay now or in the future,” he said. “Government expects that any tenants receiving federal or provincial support related to the impacts of COVID-19 will use that support to pay for necessities, such as rent.”
This decision was due to ongoing talks about the rapidly developing situation with the pandemic, Busse continued. He noted that the Office of Residential Tenancies continues to work with landlords and tenants on this issue, while the provincial government continues to monitor the situation to see if more steps are needed.
Busse added that the Office of Residential Tenancies encourages landlords and tenants to communicate with each other about their respective situations so they can come to mutually agreeable situations during the pandemic.
“The Government of Saskatchewan has essentially told landlords, most of whom are small businesses, that it is our job to bear the brunt of this pandemic,” Sayed said in the news release. “Just like a grocery store provides basic needs such as food and water, landlords provide the basic need of shelter. Any law-abiding individual uses the goods of a grocery store and pays for them. This transaction ensures that the grocery store can continue to provide those goods into the future.
“Allowing tenants to not pay rent without any consequences jeopardizes a landlord’s ability to provide the basic need of shelter because there is no revenue to sustain operations.”
To prevent financial pressures on landlords that could jeopardize their ability to provide safe, secure and well-maintained housing, they need tenants to fulfill their rent responsibilities, said Cameron Choquette, SKLA executive officer. Tenants also need the government’s support through programs such as a rent bank so they can pay their rent and maintain their housing.
A rent bank would allow renters to apply for no-interest rent loans that are paid directly to their landlord. The loans are then paid back over a period of 12 to 24 months.
“The SKLA is calling on the government to protect the health and safety of the people of Saskatchewan by instituting a rent bank,” Choquette added, “so that renters can maintain their housing and landlords can continue to provide the safe and secure housing needed during this unprecedented pandemic.”
