If the city wants to police secondary suites — and protect tenants and help prospective tenants in the process — then it needs to establish a licensing framework that is fair.
The proposed Secondary Suite Licensing Bylaw offered to Red Deer city council on Monday would help the city monitor secondary suites, ensuring that the suites meet the prescribed safety codes.
If a landlord did not have a licence, prospective tenants could fairly ask why. Does the suite meet fire codes? Is it in an allowed neighbourhood (or over the neighbourhood’s limit), and if so will it be shut down if discovered?
A licensing protocol would necessarily have to include regular inspections by city staff.
And so prospective tenants could make informed choices about where they live, and to whom they give their money.
It would now seem that the city’s previous efforts to control and constrict secondary suites — regulations were introduced in late 2009 — were part of a larger plan.
At the time, the owners of existing suites were offered the chance to legalize those suites. Once all the secondary suites were registered and approved, the next obvious step was to license them — and charge for that licence.
But as important as it is to ensure certain standards are met for secondary suites, it is also important that the city deal with all landlords fairly — whether they operate secondary suites in their basements or own and manage a 20-unit apartment complex.
During council deliberations on the bylaw (which still must undergo second and third reading on Jan. 9, when the public can attend), Councillor Dianne Wyntjes questioned the proposed licensing fee ($165 or $13.75 a month for renters, if the amount was simply downloaded to them).
She suggested it could be considered a “tax grab” and voted against first reading.
“I don’t see this as a home occupation business,” said Wyntjes. The proposed fee is the same required to obtain a licence for a home occupation.
Certainly the city must charge enough for the licence that the city’s costs are covered, both for annual inspections and for the paperwork necessary to maintain and update files.
But the city must also be careful not to place the operators of secondary suites at a disadvantage in the rental market.
The operators of all rental property must be required to pay the same proportional fees, based on the same licensing standards. Barring that, the same property tax formula must be applied to all rental accommodation, from apartments to single-family dwellings, or at least that portion of a structure that is used for rental purposes.
And reputable landlords should be prepared to absorb the costs associated with running a business. If you invest in property, renovate it to accommodate tenants, and make a profit off it, you should expect both to meet standards and to pay taxes in one form or another.
And that means the 450 legal secondary suites in the city should pay, either through a reasonable fee or property taxes. And they should expect to be inspected — and shut down when necessary, for the protection of tenants.
John Stewart is the Advocate’s managing editor.