CITY WILL MAKE HUGE REVENUE FROM RRL FEE:
The City has mentioned in the Brampton Guardian article on January 9th, city projected the anticipated cost of the pilot program at 1.5 million over two years, with an expected revenue of $550,000 from RRL fees. However, upon factual verification, this information is found that city stated incorrect.
As of January 15, 2024 according to GeoHub Brampton Data, the number of Additional Residential Units (ARUs) by ward, excluding single dwelling house rentals, is as follows:
- Ward 1: 1361
- Ward 3: 777
- Ward 4: 2310
- Ward 5: 2496
- Ward 7: 1178
The total ARUs in the RRL Pilot Program, accounting for legal basements only, amount to 8122, with an additional approximate 2000 single home rentals.
Based on these figures, the city is poised to collect approximately 3 million dollars ($3,036,600 calculated as 10,122 x $300) in the second year alone, assuming no exemptions in RRL fees. If we consider the city's projected cost for the two years at 1.5 million, there would be a surplus of almost 2 million dollars, taking into account a half-million revenue from the first year, even with exemptions considered.
As of January 15, 2024 according to GeoHub Brampton Data, Brampton has a total 20,315 are just ARUs (legal basements are registered with the city.
With above facts, we expect that the city will generate approximately $7 - $8 Millions every year from fee.
RRL CONFLICT WITH RESIDENTIAL TENANCY ACT
A significant concern arises when a landlord fails to obtain a license. Eviction of the tenant is not a viable option as there is no provision in the Residential Tenancies Act (RTA) for such action. The question remains whether the city imposes perpetual fines on the landlord.
Similarly, even after acquiring a license, if the property is not adequately maintained or becomes overcrowded, the situation does not equate to shutting down a commercial business. The RTA does not authorize the eviction of tenants under these circumstances. The city lacks the authority to either evict tenants or issue tickets in such scenarios.
A potentially challenging situation arises if tenants refuse the landlord entry into the property post-licensing. In this case, the city can only issue tickets to landlords, and both landlords and the city are powerless to take any action against the tenants.
Do not mislead with city hall, that city can ticket the tenants or evict your tenants in case of such situations. City has no jurisdiction to overcome RTA.