Landlord group argues BC shouldn’t cut annual rent increase
Posted August 30, 2017 11:47 pm.
Last Updated August 31, 2017 6:20 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) — While BC’s housing minister looks to address the issue of affordability, a group representing the rental housing industry hopes she leaves at least one thing as is.
The possibility of lowering BC’s allowable annual rent hike may make some landlords uneasy. As it stands now, a landlord is allowed to raise rent by up to two per cent, plus inflation, once every 12 months.
David Hutniak, CEO of Landlord BC, says, even in this market, it’s a misconception that landlords are receiving big windfalls from these increases.
“The reality is, when you look at financing costs, in terms of the mortgage, property taxes on an annual basis, insurance costs, utility costs, there’s a lot of costs derived out of this business and the only source of revenue you have is the rent that you collect from tenants.”
Next week, Hutniak is scheduled to meet with Selina Robinson, the new Minister of Municipal Affairs and Housing.
Hutniak says he’s hoping to find some alternate legislative ways of addressing affordability — like tackling fixed term tenancy with a vacate clause.
“There’s been a few examples of passing on increases that are substantially greater than the allowable maximum. We share concerns about that with the minister.”
Robinson has said her ministry is looking into the idea of lowering the current annual rent hike as part of an assessment of the challenging local rental market.
