Changes to the annual allowable rent increase formula could be on the way as the Province looks to ease pressure on renters.
The two early recommendations include:
- changing the maximum rent increase formula to just inflation (2.5% for 2019), eliminating the automatic two percent increase seen in the current formula (inflation plus two percent); and
- giving landlords the ability to apply for an additional increase if they can show the formula would not cover maintenance and other costs incurred.
These recommendations come after months of in-person and online consultation. A frequent topic of concern throughout the province was the annual allowable rent increase formula, which BC’s Rental Housing Task Force noted in the early report. A decision on these early recommendations is expected before October 1st.
BC Northern Real Estate Board President Court Smith says prices in the north should not be affected that much.
“I think that our property values are not as high as they are in other areas of the province. Landlords are, perhaps, not needing to look for those much larger increases that they were apparently needing to get in Vancouver and other markets in southern BC.”
Although northern renters and landlords will not be as affected as people in other markets, Smith still recommends people remain aware of any potential changes.
“[Landlords] should be aware of what the new restrictions or the new laws are going to say. I think most landlords will be aware of the rental-tenancy agreements that are in place now and this will only be an extension of the current regulations.”
Earlier this year, Premier John Horgan and Selina Robinson, Minister of Municipal Affairs and Housing, appointed the three-member task force to advise ways to improve security and affordability for renters and rental housing providers in BC.
The Rental Housing Task Force plans on releasing a full recommendation report with other ways to improve residential tenancy in the province. The full report is expected this fall.