COMMENTARY: P.E.I. housing policy needs balance, not a rent freeze
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COMMENTARY: P.E.I. housing policy needs balance, not a rent freeze
The authors of a recent opinion piece in The Guardian, Housing is a human right: P.E.I. tenants deserve a rent freeze, make a case worth taking seriously: Housing is a human right.
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However, Rental Housing Providers of P.E.I. strongly disagrees that a rent freeze is the answer to the Island’s housing challenges.
The discussion needs to recognize an important reality: a rent freeze freezes revenue, but it does not freeze the cost of operating a rental unit.
Property taxes, insurance, utilities, maintenance, repairs, building materials, contractors and other operating costs continue to increase. Older rental buildings face an additional challenge, because they require substantial capital investment to replace aging roofs, windows, heating systems, plumbing and electrical systems.
This is precisely why the director can set different rates for heated and unheated units. Heating costs do not track general inflation. A freeze discards that tool. At zero, the provider who buys the oil and the provider who does not are treated exactly........
