This content was shared by Openroom CEO Weiting Bollu in the Openroom Rental Nexus Newsletter and reposted publicly for your viewing.

Every other Sunday, Openroom community members receive a newsletter straight from me, packed with the latest rental market news, insider tips, and updates on what’s happening at Openroom! 

In October’s newsletter, I ask this question:

“What do Canadian childcare operators and small-scale housing providers have in common?”

Are any of you caregivers to young children in Canada? I have two boys under two!

I didn't think childcare operators would have so many parallels to small-scale housing providers. Considering the new Toronto Renoviction License has just been announced, it's timely for us to talk about this. 

Wait, Weiting, what do you mean parallels? 🤔

Prime Minister Justin Trudeau introduced the $10/day Canada-Wide Early Learning and Child Care (CWELCC) program as a cornerstone policy to make childcare more affordable across the country. 

That is freaking wonderful for a working mama of a startup!

What I didn't know was that it meant childcare providers were pressured to run their businesses with extreme cost and government oversight. 

These childcare providers are often small businesses (just like how housing providers are small business owners) and a vast majority are operated by women (just like how many housing providers are minorities). 

Read more about childcare concerns

Government oversight brought in the 'cost control' framework for childcare operators. The problem is that it doesn't quite add up.

Childcare operators are screaming at the top of their lungs for help before they each leave the business entirely (very similar to how many housing providers are selling off their units).

By pushing 'for-profit' childcare operators to go 'non-profit', it's going to cause a significantly long waitlist (aka backlog) for children to get into childcare. 

Per the webinar hosted by AACE National: in Quebec, it's pushing childcare providers to make inappropriate upsells to make up for their low or non-existent margins. 

Comparing CWELCC and Toronto’s Renoviction By-Law

Doesn't it kind of, maybe just sort of, feel like the programs the government is trying to implement for small housing providers without thinking through all of the implementation, stakeholders, and money involved? E.g. The licensing programs, renovation licenses, the Tribunal processes, or the Sheriff backlogs is what we end up seeing as a by-product to what could be an efficient rental market. 

Read about Renoviction Bylaws Explained in Ontario.

The parallels between these two industries become even more evident when considering the domino effect such policies create. 

Both sectors show that while government policies aim to create fairness and affordability, without balanced implementation, they risk creating barriers that undermine their original objectives and negatively impact those they aim to help—renters and parents alike.

Concluding Thoughts

The CWELCC’s cost-control framework and the renoviction license's renovation compliance processes illustrate how sweeping regulatory measures can inadvertently place excessive strain on those they regulate. This oversight can create an environment where only larger, more financially secure entities survive, reducing competition and diversity in the market.

Great government leadership can yield beautiful results - there's so much more work to be done together. Balance is key to achieving the dual goals of protecting vulnerable populations and sustaining a healthy network of small business providers.

Thank you for supporting the advocacy work we do. Let's keep pushing for change!

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