Danger of raising allowable rent increases
Vancouver— TRAC Tenant Resource & Advisory Centre is warning tenants throughout BC about the dangers of the apartment owners’ campaign to raise the allowable rate of rent increases.
First, the cumulative impact on tenants will add to the serious situation of BC having the most unaffordable rental housing in the country.
Secondly, the landlords do not need to have the Residential Tenancy Regulation changed because they already have an avenue to ask for above-guideline increases.
Thirdly, there is no indication that landlords are currently suffering financial losses or facing bankruptcy because of the existing Regulation.
Since 2004, the Regulation has allowed landlords to increase rents once a year at a rate of Cost of Living (i.e. Inflation) plus 2%. The average weekly wage in BC increased 16.6% between 2004 and 2009, and this was outpaced by the allowable rental rate increase which was 21.8%. If landlords could have increased rates by Cost of Living plus 3.5%, rents for sitting tenants would have increased almost 31%.
Also, landlords can charge whatever the market will bear when they get a new tenant.
Landlords can already apply under section 23 of the Regulation to increase rents at a higher rate if they can proof financial loss due to increased operating costs, unforeseen repairs or other reasons. We searched the government website for decisions and found only two decisions in 2009-10. One landlord succeeded partially and the other lost because the Dispute Resolution Officer found that the repairs were not unforeseen.
We urge renters throughout BC to tell their MLAs that they must not support the landlords’ campaign.
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For more information contact Martha Lewis at 604.255.3099 ext. 222, or Tom Durning ext. 227.
