Rent hikes are necessary to cover increased costs, says Landlord BC
Posted September 10, 2018 11:11 am.
Last Updated September 11, 2018 6:30 am.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – Though British Columbians may end up shelling out more for rent in the coming years, the increase to the amount that landlords can hike rent in B.C. is needed, according to Landlord BC.
CEO David Hutniak acknowledges no one wants to pay more, but argues rent is the only source of revenue for landlords and to cover costs of utilities and property taxes. He adds insurance have been going up by double-digits over the last five or six years.
“We only have one source of revenue and that’s rent, so we do need this additional money,” Hutniak tells NEWS 1130.
Hutniak expects, however, for rents to soften as landlords want to keep long-term tenants and sometimes won’t pass on any cost increases. He also credits legislative changes from Victoria over the past couple of years, such as the speculation tax, the empty homes tax and the crackdown on short-term rentals.
“We’re trending in the right direction from that perspective, but nobody wants to see their costs increase,” Hutniak says. “This is just a reality for us in trying to provide homes to British Columbians.”
On Friday, the B.C. government announced that landlords can hike up rents up 4.5 per cent a year, which they calculate as inflation plus a maximum 2.5 per cent.
Average rent for one-bedroom in Vancouver hovers around $2,000 a month, according to rental site PadMapper, which tracks prices. A 4.5 per cent increase would work out to an extra $80 a month, for total of $1,080 extra a year for renters.
NEWS 1130 has made multiple requests to speak with the housing minister, but has been told that Selina Robinson unavailable.
