Landlords risk losing properties as delinquent rent soars to $30M during pandemic

A Saskatchewan group that advocates for landlords says some owners are considering foreclosure and bankruptcy due to tenants withholding rent during the COVID-19 pandemic.

Executive Officer for the Saskatchewan Landlord Association (SLA) Cameron Choquette says the government’s temporary ban on evictions has put serious pressure on the industry.

“As each month goes on, (landlords) get increasingly more upset, worried and fearful about the potential risk of losing their property because of steep losses in revenue.”

Since the end of March, the Office of Residential Tenancies (ORT) hasn’t accepted applications for evictions that are related to missed or late rent, or for other non-urgent claims. The exceptions are for violence or damage to property.

The SLA said delinquent rent has climbed to $30.4 million since the ban came into effect. The figure is an estimation based on survey responses from its more than 500 members.

In April, roughly 300 members indicated 20 per cent of their tenants did not pay rent. Of the 200 responses in May, 10 per cent did not receive payment. The figure dropped to 8 per cent in June. The figures are based on an 8 per cent vacancy rate and an average rent of $1,000.

“Roughly two-thirds of the 8 per cent of tenants who didn’t pay rent are believed to be deliberately withholding rent because of the eviction ban,” said Choquette.

The ORT said it does not speak to specific cases involving landlords or tenants.

“The Office is conducting eviction hearings for urgent situations where there is a potential risk to health or safety resulting from violence or damage to property. Landlords with concerns related to these issues are urged to contact the ORT,” said a statement from the government.

In the meantime, the suspension is handcuffing the ability of landlords to run their businesses effectively.

Under the current suspension, a landlord is not able to sell their private property if a tenant refuses to leave.

The SFL said a proposal submitted to the government on June 8 to have the suspension lifted or amended was not accepted.

“Minister (Don) Morgan indicated they weren’t prepared to lift it right now, but he committed to continuing dialogue. He outlined they are closely following other provinces, as well as the chief medical health officer.”

Choquete said the government indicated it would re-evaluate the ban once Phase 4 of the Re-Open Saskatchewan Plan was rolled out.

The government has said tenants will be expected to pay their rent in full once the state of emergency is lifted.  Members are concerned rent arrears will be written off said Choquette.