'People don't have enough money to pay rent': Sask. Landlord Association noticing spike in evictions

Concerns over low-income evictions WATCH: As prices rise, low-income renters in Saskatoon are running into serious challenges paying rent.

The CEO of the Saskatchewan Landlord Association is 'extremely frustrated' with a trend of evictions affecting low-income renters due to increasing rental, utility, and inflation costs.

"Simply put, people don't have enough money to pay rent," Sask. Landlord Association CEO Cameron Choquette said. "And with the cost of living crisis and inflation that we're seeing right now, that impacts individuals and families on the lower income side far greater than it does middle-class Saskatchewan people."

Choquette said the problem has been exacerbated by a variety of circumstances.

Last July, SaskEnergy announced a 17 per cent increase in natural gas rates. The roughly $12 per month increase for the average ratepayer comes into effect on Aug. 1.

SaskPower was also approved for a four per cent rate increase -- which started in September, adding roughly $5 to the average monthly power bill.

"When folks don't pay their rent or their utilities, they ultimately get evicted, which in our industry is a last resort," Choquette said.

With temperatures only expected to get colder as winter approaches, utility arrears are likely for Crown corporations, but Choquette said if those arrears aren't paid, then rental housing providers are left with no other option than to evict.

INCOME SUPPORT SNAG

Choquette also highlighted the provincial government's decision to alter its financial assistance benefit in 2019 as another reason evictions are spiking.

The Saskatchewan Income Support (SIS) altered the way landlords were paid. Instead of receiving money directly from the government for rent and utility costs, the responsibility was passed over to the recipient.

In the face of criticism, the province announced some high-needs clients at risk of homelessness would be eligible for direct payment, but very little has changed otherwise.

"We knew the implications of it. I mean we're feeling the pinch right now," Len Usiskin, executive director of non-profit developer Quint Development Corp. said.

Usiskin said the spike in renters in arrears, the number of vacancies and the amount of "bad debt" after the program's rollout were in direct relation to one another.

"I would consider it 100 per cent correlation," Usiskin said.

Under SIS, $575 per month is given to a single adult in Regina and Saskatoon for shelter and utilities. Another $285 each month is given for food and all other expenses.

"I don't know of anywhere that you can find a place for $650, including utilities, even in government-run Saskatchewan housing," Choquette said.

According to Usiskin, those figures put people in a $150 to $200 deficit when compared to the average monthly rent in Saskatoon.

"They're in a deficit before their utilities, so to pay their utilities is going to have to come out of their basic allowance or their basic benefit, which means that then they don't have hardly anything left to live on," Usiskin said.

With no change on the horizon, Usiskin said Quint has been experiencing plenty of tenants approaching them with increasing debt over the past 18 months, which is impacting the company's ability to provide housing.

"It's kind of almost a perfect storm scenario for us right where, where the need has never been greater, but our capacity to provide it has never been less," he said.

Choquette is hoping that direct payment transfers can be reimplemented to prevent more evictions.

"It's a sad story here when our relatives and friends and neighbours don't have enough money to pay their rent and utilities. It's a simple solution. We need to implement a housing first model here in Saskatchewan, where somebody's home is prioritized as the first thing to get done," Choquette said.