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
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Suter scores late goal, clinches series for Canucks
Pius Suter scored with 1:39 left and the Vancouver Canucks advanced to the second round of the NHL playoffs with a 1-0 victory over the Nashville Predators on Friday night in Game 6.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Quebec man who threatened Trudeau, Legault online sentenced to 20 months in jail
A Quebec man who pleaded guilty to threatening Prime Minister Justin Trudeau and Premier François Legault has been sentenced to 20 months in jail.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.