City of Waterloo - Rental Housing Licensing Review

Rental housing licensing in Waterloo is currently under review by city staff. The review proposes licensing of rental properties be restricted to certain areas or become city wide. The purpose of the proposed licensing program is to protect the health, safety and welfare of residents in rental units as well as minimizing the impacts on residential neighborhoods in terms of property standards, lot maintenance, numbers and scale of rental units, according to a June 16, 2009 report. The City's concerns with the current system are: too many rental properties concentrated in certain areas, poor upkeep of properties, parking concerns, safety when building are not maintained and do not comply with Codes, behavioral issues, and the ability to apply the Lodging House by-law to other forms of rental housing.

The City's proposal would require all rental properties be licensed, fees estimated at $275.00 per year would apply. Minimum distance of 150 m between rental properties would apply. A cap on the number of bedrooms to a maximum of 3. The City would have increased powers to enter a property for inspection and enforcment purposes. New penalties for non compliance.

The costs of the program are estimated at approximately $821, 577 per year.

The proposed program will have a negative effect in certain circumstances. Out of town families wishing to purchase a property for children attending university with the intention of renting to fellow students will become difficult, if not impossible to do. First time home buyers hoping to rent to help offset mortgage costs as well as individuals aquiring investment properties will also be adversely affected.

When applying property owners will be required to provide various inspection reports, proof of tenancy, proof of insurance, and parking, floor property maintenance and waste management  plans.

City staff recommends that Council receive and review the new proposal.