New rent increase capped at 3.5 per cent, seemingly not welcomed by renters or landlords
In an already tight, expensive rental market, landlords in B.C. will soon be able to increase their rent for existing tenants by three and a half per cent instead of the two per cent they're currently capped at.
The increase is still below inflation for the second straight year – which is a departure from when landlords were allowed to increase rent based on inflation -- or from prior to 2018, when they were allowed to increase rent by inflation plus two per cent.
“We know that renters are having a real tough time right now -- we also know that some landlords with the rising interest rates are having a real tough time,” said Housing Minister Ravi Kahlon, when announcing the new rental cap on Monday.
Landlords were hoping for a cap in the range of the 5.6 per cent calculated as average inflation for the year, and David Hutniak, the CEO of Landlord BC says mounting expenses could drive some landlords away from renting their places out.
“I would remind everyone that landlords are not immune the inflation and the effects of interest rates,” said Hutniak.
He says another concern is that with allowable rent increases changing so often, developers may be reluctant to build purpose-built rentals.
“They need certainty around annual rent increases,” said Hutniak.
On the flip side, with rents already at record highs, any allowable increase is tough for tenants, and this increase works out to several hundred dollars more a year for most tenants.
“It’s going to be an increase that’s going to hurt many tenants if they’re already stretched to the max,” said Douglas King, a housing advocate with Together Against Poverty in Victoria.
King says what’s most important, however, is a cap on how much landlords can jack up rent in between renters.
“We’re seeing more and more pressure on landlords to evict tenants to try and get the rent as high as possible,” said King.
Premier Eby today characterized setting rent caps as a tricky balance.
“The realities faced by renters of increasing costs on many fronts and the realities faced by landlords of many increasing costs -- and their decision perhaps not to continue renting,” said Eby at a press conference in Kamloops.
The new rent hikes can take affect as of this upcoming January -- as long as landlords give proper notice, three months in advance.
CTVNews.ca Top Stories
NEW 'Oh my God, you're my brother': Manitoba man discovers six unknown siblings
After receiving a DNA kit one Christmas from his son-in-law, Hugh McCormick soon discovered that he had six unknown siblings, with whom he shared the same birth parents.
Canucks hold off Oilers for 4-3 win in Game 3
Brock Boeser had two goals and an assist, and the Vancouver Canucks hung on for a 4-3 win over the Edmonton Oilers in Game 3 of their second-round Stanley Cup playoff series.
'My family doctor just fired me': Ontario patients frustrated with de-rostering
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
Man fatally 'slashed in the neck' in downtown Toronto, suspect outstanding
Police are searching for a male suspect after a man was “slashed in neck” on Sunday morning in downtown Toronto and died.
WATCH Dashcam video shows terrifying near-miss on two-lane northern Ontario highway
There were some scary moments for several people on a northern Ontario highway caught on video Thursday after a chain reaction following a truck fire.
'He's in our hearts': Family and friends still seek answers one year after Nathan Wise's disappearance
It’s been a year since Nathan Wise went missing and his family is no closer to finding out what happened to him.
Canada Post cracks down on Nunavut loophole to get free Amazon Prime shipping
Amazon's paid subscription service provides free delivery for online shopping across Canada except for remote locations, the company said in an email. While customers in Iqaluit qualify for the offer, all other communities in Nunavut are excluded.
Wildfire near Fort McMurray more than triples overnight, several evacuation alerts remain in place
The fire burning near Fort McMurray grew from 25 hectares to 5,500 hectares over the weekend.