Rentals montreal
Montreal, a place of significantly lower rents in comparison to the other cities in Quebec, situated in North America is now at the verge of facing a rental crisis, thanks to the tough regulations set in by the local authorities to defend the rentals. These regulations are discouraging private participation in apartment raising investments despite, the rosy future forecast for the rental market with least vacancy rates of less than 1%.
The total space available for rent in Montreal is about 3,50,000 with vacancy rates not even equal to 3,500 houses i.e. 1%. With such low vacancy rates, the economy must have plunged into the sector of real estate to develop the city by leaps and bounds. But, nothing so happens in that place owing to the step motherly treatment extended to the private establishers by the government officials who always compete with them making their investments not so profitable. They take the guise of tenant protection with the result that the rental market suffers from lack of inflation and such low rentals only attract meagre earning workers to adjust to the low amenities provided by the city land lords. Naturally, the landlords do not earn enough on their investments and as such do not think of improving their properties.
This story starts from the 70's when the Nationalist government wanted to implement French as a compulsory language in Montreal and other cities of Quebec, and the affluent English speakers of the city just moved away to other places along with their businesses. In 1990's the sovereignty of Quebec was quite vulnerable resulting in a further shift of affluent families to other places. Thus, the Government has ensured that there would be an artificial rental vacancy and the landlords are forced to dance to the tunes of the tenants till the last two decades. But now, the situation has changed. With the regulations turning to be more and more stringent day by day, the private owners lose interest to hold any assets in this place and thus the rentals are to lose as there is very little place available for them to relocate.
There is one more problem of the immigrants to Montreal which amounts up to 30,000 people every year i.e. approximately 10,000 families. But, as earlier said; only 3,500 new spaces are available for relocation with the result that the remaining 6,500 families either those of the immigrants or those relocating families of Montreal have to become shelter less every year. In this context, a city wise statistics would be of much help to analyse the situation more clearly:
Name of the city
Baie-dwife
Kirkland
LIle-Bizard
Pierrefonls,Seneville
Dollard des ormeaux
Pointe Clare
Dorvalille Dorval
St. Laurent
Lachine
Hampstead
Notre Dame de grace
La Salle
Verdun
Sud-Quest
West Mount
Ville Marie
Outremont
Mont Royal
Ahuntsic
Villeray-St. Michel
Rose Mont
Mercier
Anjou
St. Leonard
Montreal Nord
Riverdes Prairies
Rental %
10.6%
7.8%
33.2%
32.9%
22.6%
28.7%
43.6%
59.2%
61.9%
48.1%
77.4%
61.2%
70.1%
73.5%
51.75%
82.8%
50.6%
38.3%
63.6%
74.3%
74.1%
71.7%
58.9%
65.9%
72.4%
39.3%
Average gross rentals
1029-1104
800-853
550-599
600-699
600-699
700-799
600-699
600-699
489-549
700-799
550-599
550-599
550-599
489-549
1029-1104
600-699
800-853
800-853
489-549
489-549
489-549
489-549
550-599
550-599
489-549
600-699
The above analysis shows that the tenancy rates are higher at places where the average rentals are comparatively lower than the country rental rates. Take for example, Rose Mont, where the tenancy rates are 74.1%. The average gross rentals are the least with $489 - $549 per month. This implies that the population of Montreal mostly comprise of the low earning worker group who only dwell in the house for shelter at nights not really bothered about the amenities provided to them by the landlord for the sole reason of low rentals per month.Similarly, Lachine, Notre Dame de grace, La Salle, Verdun, Sud Quest, Ville Marie, Ahuntsic, Villeray St.Michel, Mercier, St. Leonard, Montreal Nord and Riverdes Prairies are all places demanding just $500 to $600 average gross rentals. The costlier ones have very less rental proportions.
One more notable fact is that as the population of Montreal comprising of low wage earners, spend almost 30% of it's income towards housing. That means that even meagre rentals are also not fully affordable by the residents of Montreal. They wait for the assistance for the Food bank to finance their day-to-day meals. Why are they so much poverty stricken? Why are they not able to earn enough to fulfil their two-square meals also? The answer is simple. Actually, there is not much action taking place in Montreal that anybody can earn any money in that place. The place has been noted for its poverty stickiness and the private investors as such are not showing any interest to start any financial activity which can roll on some fresh money into the city. The harsh regulations are the main cause of this entire unimpressive scenario. Added to this, the authorities invent new slips to the regulations according to their whims and fancies. For example, house buyers in Montreal are supposed to pay an incremental tax on the property they purchase. Of recent, there are some cases where in the most wanted properties had recorded a sale price of just $1. Can anybody own a single room in these days for $1 leave about a Mansion. But, the authorities have recorded the sale and the parties to the deal are at the advantage that they can pay the minimum, if not, zero transfer tax. There are many cases going on in this way at Montreal and the harsh ground regulations are only struck to the helpless poor who stand to lose whether they are owners or rentals.
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