The City of Waterloo is set to debate a proposed by-law that would force landlords to licence some rental units, and charge them to do so.
Similar licenses already exist in Oshawa, London, Hamilton and Mississauga. If this by-law passes, Waterloo would be the first in the region that charges to rent.
Owners of properties with three units or less would have to pay fees and meet certain guidelines to get licensed. Licences could cost anywhere from $300 to $900.
Mike Milovick, who owns a five bedroom student residence near Laurier University, is concerned that the proposed by-law will force him to evict tenants and lose profits.
He says, "This home's a licenced lodging house for five students, it meets both building and fire code and it's one of the units that's anticipated to be scaled back."
Milovick's business partner Eric Klimstra says the by-law would devalue the property. "This is my retirement fund here," he says. "It just comes and wiped away a third of its value - which is ridiculous."
However, landlords might not have to downsize. Director of By-Law Enforcement for Waterloo Jim Barry says some landlords may be able to upgrade their properties to boarding houses, which would allow them to take on more tenants.
But Councillor Karen Scian believes the by-law will ensure the safety of everyone involved.
"I can understand the argument that prices are going to rise," she says, "but is there a value to safety? What does safety cost?"
Klimstra is threatening legal action if the by-law is passed.
"We want to work with them. We're willing to work with them," he says, "but they need to understand that if this goes farther and they try to take away property value from me, I'm going to fight it."
The proposed by-law is still under consideration and will be discussed at council next week.
Concerned property owners and residents will have an opportunity to voice their opinions at upcoming public meetings.
For more information visit the City of Waterloo's Web Site at: http://www.city.waterloo.on.ca/Homepage.aspx
