Victoria – The BC Rental Task Force is recommending that the Province ties the annual rent increase to the cost of inflation and to get rid of the automatic 2% hike that goes on top of that.
That is the model used in Manitoba and Ontario. This would still have to be passed in the Legislature. Landlords would still have an option to apply for additional increases to compensate for maintenance of buildings and properties.
From the Government Media Releae:
Recommendations to government include:
- changing the maximum rent increase formula, from the current formula of inflation plus 2%, to inflation only (2.5% for 2019), which would remove the automatic 2% yearly increase.
- giving landlords the ability to apply for an additional increase if they can show the formula would not cover maintenance and other costs incurred.
The task force recommends the Ministry of Municipal Affairs and Housing do further work with landlord and tenant groups to determine the criteria for reviewing landlord applications for increases above the inflation rate.
These recommendations follow months of online and in-person consultation in communities throughout British Columbia. The task force noted that the annual allowable rent increase formula, put in place by the previous government in 2004, was a frequent topic of concern during the public engagement process.
“Whether they are renters or rental housing providers, people are looking for greater fairness and greater balance in residential tenancy policies in our province,” said task force member Ronna-Rae Leonard, MLA for Courtenay-Comox. “We’ve made these recommendations after careful consideration and look forward to a response from cabinet later this month.”
A decision will be made on these early recommendations from the Rental Housing Task Force before October 1, 2018.