Urgent - Waterloo Proposed Residential Rental Licensing bylaw

[David George]

Dear fellow My Rein Space Members (11,502 strong!)



I am creating this new Urgent thread about the Waterloo `Proposed Residential Rental Licensing By-Law` because it is a very important issue that needs attention by anyone that currently has Real Estate Investments or is thinking of Investing in Waterloo.



Fellow Waterloo Real Estate Investors/Landlords have formed a group which is focused on fighting the City of Waterloo on this by-law, which I am a member of. One of our Goals is to inform and get as many fellow Waterloo Real Estate Investors involved in our fight to stop this proposed by-law.



If you currently own Waterloo Real Estate Investments or are thinking of Investing in Waterloo you need to be aware of this by-law and get involve in our fight to stop it. It has enormous negative ramifications on our Investments.



Before I summarize some of the key points of the by-law to show you how it will hurt us, here are 3 ways you can get involved:



1) I will be at the Ontario, Toronto REIN meeting on Jan 27, so please come talk to me if you have questions or want to get involved in the fight (I will be wearing a Blue REIN baseball Cap and a bright Yellow `I Buy Houses` shirt so you can find me!



2) email me at [email protected] and I can provide more info and add you to our group, and/or



3) Mike Milovick has started a Face Book site dedicated to this fight; you can join at - http://www.facebook.com/home.php?sk=group_179891552042975



I have also attached the 70 page pdf document from the January 10, 2011 City of Waterloo Council meeting explaining the proposed by-law and includes the by-law itself word for word YOU NEED TO READ IT WORD FOR WORD.



The by-law affects `All` residential rental property in Waterloo, meaning any property that is not considered an apartment, even owner occupied homes! This also includes student residential rental properties (which is one of the key bones of contention). Here are some key points:



- no one can rent any residential property without a license (there are 5 classes of licenses)

- they are limiting rentals to 3 bedrooms only (even the student rentals that have existing lodging house licenses for 3+ rooms i.e 6+)

- no home owner can rent their home if it is 4+ bedrooms (i.e. if they are transferred for work to another country, they would have to sell or leave it vacant)

- owner occupied homes can only rent their homes for 18 months and then need to live in it for 2 years before they can rent it again (only if it is a 3 or less bedroom can they do this)

- even a retired widow that owns their home and is renting out 1 room in the house to help pay bills will need a rental license

- there are a ton of requirements in order to be approved for a rental license (cost$ , paper work and time) even for a 1 bedroom rental in your owner occupied home.

- for a single family 3 bedroom home that complies with the by-law, (there are no guarantees they will even allow existing single family rental homes) it will cost up front about $2,500 to initially get approved for a license (this does not include annual re-registration etc..). This includes the licensing fee and all required building/equipment inspections/paper work etc...

- city will hold landlords responsible for the behaviour of tenants

- bylaw officers can enter your property at ant reasonable time to enforce the bylaw

- fines up to $100,000



Here is a list of documentation/inspections they want at owner`s expense, in order to get a license (even for renting 1 bedroom in an owner occupied home) this is for a basic license, it is more comprehensive for other classes of a license:



1) address of rental unit

2) applicants contact info

3) registered owners contact info

4) if a corporation is owner all directors etc.. info

- articles of incorp

-current bylaw of corp

-corps most recent annual tax return

5)if owner does not reside in waterloo they need a local emergency contact

6)copy of transfer/deed ownership

7)copies of all tenancy agreements for `every` tenant

8)criminal police check for all owners, directors etc..

9)parking plan

10)floor plans

11)property maintenance plan

12)signed statement that applicant/owner/home will comply with:

-1992 building code

-1997 fire protection act

-1998 electrical act

-are aware of all relevant local, provincial, and federal legislation including Ontario Human Rights Code

13) proof of 2 million liability insurance

14)inspection certificate that confirms HVAC system is working properly



There is much, much more detail to the bylaw, so please read it and get involved with us if you own or are thinking of owning Waterloo Residential Investment Real Estate.



Thanks

Dave Attached files Rental_Housing_By-law_Report_January_2011.pdf (2.2 MB)Â

 

[housingrental]

Thanks for posting this Dave and your support at the meetings

REIN - Can we get some assistance?

 

[OlegP]

Does this initiative apply to Waterloo only, or Kitchener and Cambridge as well?



Thanks.

Oleg

 

[jonathanb]

At the moment, this is just Waterloo- however, what happens in Waterloo, doesnt always stay in Waterloo. Id be suprised if this didnt make its way over to Kitchener etc.



Jon.

 

[David George]

[quote user=OlegP]Does this initiative apply to Waterloo only, or Kitchener and Cambridge as well?





As Jon indicated, at the moment this "proposed bylaw" only applies to Waterloo. But if the proposed bylaw is passed as it is written right now it will set a standard and other Ontario cities will follow like Kitchener, Cambridge etc..



That is why we as Real Estate Investors need to do everything we can to stop it from being passed.



Just an update to my original post, within a week or so we will have a website up called

www.savewaterloo.ca

where you can go and get information regarding the fight against the bylaw and what you can do to help.

 

[ycheun2]

Dear Dave,



I will attend the Jan 27 meeting in Toronto as well and I will definitely like to meet you. I am used to investing properties in Asia (eg. Hong Kong) and am definitely NOT used to this socialist government here. What the City of Waterloo is doing is basically killing the entire property investment community. I am NOW thinking TWICE of investing in the KWC or even Ontario at the moment. Maybe we all should go invest in Alberta instead!



Shirley

P.S. Sorry, I am a bit upset by this bylaws!

 

[David George]

[quote user=ycheun2]Dear Dave,



I will attend the Jan 27 meeting in Toronto as well and I will definitely like to meet you.

Shirley

P.S. Sorry, I am a bit upset by this bylaws!




Hi Shirley,

I look forward to meeting you this Thursday at the REIN meeting.



I am also very upset about the proposed bylaw, as are many other real estate investors, home owners, and tenants in the city of Waterloo. The city would be taking away basic human rights of home owners and tenants!

 

[ycheun2]

Dear Dave,



Are you saying that we should stop looking at Ontario properties at the moment? Guess we are in the "winter" season according to Don's.



What is happening in Ontario is frustrating, hugh land transfer tax, HTS, and now the licensing. I think the Ontario government is trying to get rid of property investors like us!



Shirley

 

[David George]

[quote user=ycheun2]Dear Dave,

Are you saying that we should stop looking at Ontario properties at the moment?

Shirley





No, I am not saying that at all. I am still buying investment properties in Kitchener-Waterloo (I live in Waterloo myself).





What I am trying to do is raise awareness of fellow investors/home owners/tenants so we can try and stop this proposed bylaw from being passed as it is written right now.





I encourage all Real Estate Investors/Landlords and Property owners in the City of Waterloo to write Mayor Brenda Halloran and Ward Councilor`s about their thoughts and feelings of this proposed new By-Law.





Here is a direct link to contact Waterloo Mayor Brenda Halloran and Ward Councilor`s about your concerns:





Ward boundary Information:


http://www.city.waterloo.on.ca/desktopdefault.aspx?tabid=541&all=open





Mayor Brenda Halloran and Ward Councilor`s contact Info:


http://www.city.waterloo.on.ca/DesktopDefault.aspx?tabid=539








Reminder, a PDF doc of the proposed bylaw is attached in the first post of this thread.

 

[housingrental]

You should not buy anywhere at this point in time

Give it some time

[quote user=ycheun2]Dear Dave,



Are you saying that we should stop looking at Ontario properties at the moment? Guess we are in the "winter" season according to Don's.



What is happening in Ontario is frustrating, hugh land transfer tax, HTS, and now the licensing. I think the Ontario government is trying to get rid of property investors like us!



Shirley

 

[Sandro]

When is the next meeting for the City and when is this expected to be put into place?

 

[David George]

[quote user=Sandro]When is the next meeting for the City and when is this expected to be put into place?




The City had 3 recent open houses to hear comments, concerns from the public regarding the proposed bylaw. They indicated that they would be taking these comments into consideration and coming back in April with a revised proposed bylaw, which could then be commented on again (but time line to comment may be much shorter then it has been).



I was at one of the open houses and they also indicated they would be holding more public consultation sessions before April, but did not provide any details.



As for the next formal City meeting when this will be on the agenda, I am not sure of that yet, but I will keep you posted.

 

[housingrental]

Please check city website but I think it is apx. April 11 - with revised proposed by-law to be released apx. a week prior - If you are a landlord in Waterloo and would like to get more info on Landlord meetings please send me an email

 

[safsad]

I am intrerested to know why Adam thinks we should not buy any properties at this present time.I feel the same because I have seen people in a hurry to purchase investment properties and having to pay higher prices.

I was at an open house for a 6 plex in Toronto and there was a lot of interest.Will markets ever cool off?

 

[housingrental]

Unfortunately you are one of the few to say this



[quote user=safsad]I am intrerested to know why Adam thinks we should not buy any properties at this present time.I feel the same because I have seen people in a hurry to purchase investment properties and having to pay higher prices.

I was at an open house for a 6 plex in Toronto and there was a lot of interest.Will markets ever cool off?

 

[David George]

Here is some background information
on where the Waterloo
proposed bylaw is coming from (see attached report).



For those that may think this is an isolated case for Waterloo, this is not the case. Any city in
Ontario now has the authority to try and implement a similar Residential Rental
Licensing bylaw (see quote below form the attached Background report on where
the proposed Waterloo bylaw came from):



`On January 1, 2007, the Province of Ontario passed Bill 130 (a change to the
Ontario Municipal Act), enacting amendments to the Ontario Municipal Act. One
of the changes was to remove to prohibition preventing municipalities from
licensing the business of renting residential units. Municipalities now have
the ability to govern, regulate and license residential rental units similar to
licensing other businesses`.




We need to group together as "Ontario", real
estate investors, home owners, landlords, and citizens. If you want to get
involved with our Stakeholder group currently fighting the Waterloo bylaw please email me at [email protected]





I will also be at the Toronto REIN
meeting this evening if you want to chat, I will be wearing a Yellow I Buy
Houses T shirt.





Attached files Background_ToThe_WaterlooPropposedBylaw.pdf (469.1 KB)Â

 

[Mike Milovick]

Of note, other municipalities are watching this very closely. Note that Waterloo is extremely regulated currently. If this goes through, watch for it in Hamilton, Kitchener and Guelph - and to a municipality near you.



Rental licensing disease must be stopped - here - now - in Waterloo.

 

[David George]

[quote user=MikeMilovick]Of note, other municipalities are watching this very closely. Note that Waterloo is extremely regulated currently. If this goes through, watch for it in Hamilton, Kitchener and Guelph - and to a municipality near you.

Rental licensing disease must be stopped - here - now - in Waterloo.







Mike, great comments.









I was at the Toronto REIN meeting tonight (great meeting REIN, it was packed). I spoke with a few investors about the proposed Waterloo bylaw and I was very surprised about the lack of interest or care about how it will affect them eventually in Ontario. The general comments were `we will deal with it when it hits our city`.








Guess what, every Ontario city is already dealing with it. Since 2007 they are all monitoring what the current active cities are doing like Waterloo, London, Hamilton, Oshawa, Ottawa, St. Catherine`s, Kingston and Barrie.





If Waterloo gets their bylaw passed it will set a standard for Ontario, trust me you dont want the Waterloo bylaw as the standard.

 

[David George]

Update:





If you are investing in Ontario residential real estate, you need to be aware of this Proposed Waterloo Residential Rental Licensing by-law and get involved in our fight to stop it (every city in Ontario now has the ability to pass a similar bylaw).





Local real estate investors/landlords/home owners/tenants have formed a group called PROW (Protecting Rental Options in Waterloo) to stop the proposed by-law from being passed. We now have a website up where you can find out how this bylaw could negatively affect you and how you can get involved:





http://www.savewaterloo.ca/





On the website there is also a link to sign our petition, anyone can sign it. If you are an Ontario real estate investor/landlord/home owner/or tenant, helping stop this Proposed by-law will make your job easier before a similar proposed by-law hits your city.





`Help to protect your rights as an Ontario real estate investor/landlord/home owner/tenant`.

 

[jonathanb]

I signed the petition today. Am i really only #76?



Lets be heard.



jon