Some landlords forcing tenants out, then re-signing them at high rates
ROB SHAW
The Vancouver Sun
B.C.’s housing minister says he’s prepared to plug a loophole that has allowed some landlords to hit tenants with higher-than-legal rent hikes, but the legislation won’t be ready until the spring.
Rich Coleman brushed aside attacks Tuesday from the Opposition NDP that the fixed-term rental increase problem could be solved now, if only the Liberal government hadn’t chosen to skip the scheduled fall session of the legislature.
“It’s never as simple as some people think it is, but certainly the work is being done,” said Coleman, who added he should have solutions ready by the spring session that begins February 2017.
“It isn’t the intention that leases should be used to, for lack of a better description, circumvent the law. So I’m going to look at how I can put some strength back into it, that they can’t do that.”
B.C.’s Residential Tenancy Act only allows a landlord to increases a tenant’s rent once a year, at a rate of two per cent above inflation — set at 2.9 per cent this year and 3.7 per cent in 2017.
But some landlords are trying to skirt the limit, using the pressure of Metro Vancouver’s near zero rental vacancy rate to force tenants to sign one-year leases with clauses that require them to move out at the end of the term. As the contract expires, the landlords offer the tenant the choice of leaving or signing an entirely new one-year contract with a significantly higher rent — a move that effectively bypasses the rate cap under the illusion it’s a new tenancy.
Tenant groups say they’ve seen rate hikes of up to 30 per cent in a single year. Coleman said his ministry has yet to determine how widespread the practice has become.
NDP leader John Horgan said the government should be striking back against these “unscrupulous landlords” by reconvening MLAs to pass changes.
“I think it’s time we get into the legislature and start addressing those issues,” Horgan told reporters. “Tenancy advocates have been talking about this issue for over a decade.”
The organizations representing both tenants and landlords agree the act should be changed to make clear the rental rate cap.
“It’s not the professional landlords and property managers, they all know how it works,” said David Hutniak, CEO of LandlordBC. “But there’s a small group here who think it’s a license to charge whatever they want.”
Hutniak said his organization has “vigorously” denounced the practice, and welcomed clarity.
“It’s these small guys new to the industry who are messing it up for the rest of us. I’ll be honest with you, it’s extremely frustrating,” he said.
“It’d be really unfortunate if the minster did some sort of knee-jerk reaction on this because we do not need anything to discourage folks from developing new rental property here.”
With low vacancy rates causing bidding wars over properties, tenants have little bargaining power to fight back, said Andrew Sakamoto, executive director of the Tenant Resource & Advisory Centre.
“It is a loophole and it does need to be closed,” he said. “I’m glad the minster has acknowledged that and is planning to make some legislative amendments.”
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