Some landlords report they are more reluctant to rent to older apartment seekers since added protection for long-term, low-income elderly tenants was adopted into Quebec’s civil code last year. After recently surveying members who have potentially lost the ability to claim units in multi-residential buildings for their own use, the province’s largest rental housing association contends the new rules are undermining both landlords’ attitudes toward seniors and the value of smaller properties with two to five apartments.

“For many owners, the law, which has been in effect since June 10, 2016, represents a severe loss of property rights,” says Hans Brouillette, director of public affairs with CORPIQ (Corporation des propriétaires immobiliers du Québec).

Owners of rental buildings have traditionally had flexibility to repossess an apartment to expand their own living quarters, subdivide the space or house new tenants who are their family members. To do so, landlords have been required to give the affected tenant six months of notice (except in the case of short-term leases), pay compensation and, if challenged, prove good faith to the provincial Régie du logement.

The new article 1959.1 of the civil code now changes conditions for tenants 70+ years of age. Leaseholders cannot be evicted if they have lived in the unit for at least 10 years and comply with the Société d’habitation du Québec definition of low-income. Younger leaseholders with low incomes and 10 years of occupancy are also protected if their spouse is 70 or older.

Exceptions apply if the property owner is likewise 70+ years of age and wants to repossess a unit as a personal residence, or if an owner aged 70+ is already a resident of the building and wants to repossess a unit so that a younger family member or caretaker can live nearby.

CORPIQ’s survey of 656 owners of small buildings finds these Quebec landlords wary of lifelong tenants and concerned how such lasting tenures could affect resale demand.

“Nearly 30 per cent of owners currently have a tenant who meets the age, income and length of occupation criteria that makes them admissible to the law limiting repossession,” Brouillette observes. “Given that senior tenants have the right to remain in a property for life, with some exceptions, there is a risk that an owner will have trouble selling the building because potential buyers will have limited occupation and management options.”

He suggests the new protection for seniors could backfire on tenants in their 60s — citing an example of a couple who accelerated what had been distant plans to reclaim an apartment in order to be ahead of a tenant’s 70th birthday. In a province where 45 per cent of tenants have lived in the same apartment for more than 10 years, even prospective renters in their 50s could be viewed as a riskier probability.

One third of CORPIQ survey respondents indicated they would be hesitant to rent an apartment to a tenant at or nearing age 70, while another 18 per cent stated they would not rent to prospective tenants in that age range. Among the landlords who already reside in units in their buildings, trepidation about older tenants rose to 64 per cent. However, Brouillette stresses that owners’ dismay and uncertainty relates to the law, not seniors themselves.

“CORPIQ is asking the government of Quebec to restore the right to repossess a unit to house the owner’s immediate family,” he reiterates. “Restrictions in addition to the existing required actions could be included to ensure that the repossession is done in good faith.”