Renters in Richmond and across the province could face a rental increase of up to 2.6 per cent for 2020, the maximum allowable increase for that year, according to a Sept. 4 announcement made by the provincial government.
And while renters may balk at the number, according to the government it’s actually two per cent below what the increase would have been prior to the rental increase cap that was introduced earlier this year.
Under the old formula, where landlords could raise rents based on inflation plus two per cent, rents could have been increased by up to 4.6 per cent this year.
“Renters need secure housing they can afford,” said Selina Robinson, Minister of Municipal Affairs and Housing in a press release.
“That’s why we removed the additional two per cent about inflation that the old government allowed for rent increases since 2004. Under the old formula, renters would have seen a rent hike of more than nine per cent over 2019 and 2020. Because of our changes and the removal of the fixed-term loophole, people will no longer face the unreasonable rent hikes that were allowed for years,” said Robinson.
The average rent for a two-bedroom apartment in Richmond, according to RentBoard.ca, is $2,125. For one bedroom units, the average is $1,575.
The provincial government is also taking steps to strengthen renters’ protections and limit reno-victions, and has increased compensation for bad-faith evictions. The province has also strengthened the requirements for eviction notices.
And in July, the government issued new Residential Tenancy Branch guidelines that will help provide stronger guidance for both renters and landlords on the types of major repairs that require vacancy; the good-faith requirement; necessary permits required by landlords; and case law regarding renters’ ability to keep their tenancy during renovations.
"Tenant Resource and Advisory Centre (TRAC) supports the provincial government's decision to amend the annual rent increase formula," said Andrew Sakamoto, executive director of TRAC, in a release.
"Although more can still be done to improve rental affordability in B.C., reducing rent increases by 2 per cent is a step in the right direction.”
Following the rental increase cap earlier this year, the Rental Housing Task Force also recommended that the provincial government work with landlords on revising the process for applying for limited additional rent increases to ensure they can pay for necessary maintenance and repairs to their buildings, and preserve good-quality housing for people throughout the province.
Under the previous process, landlords only had the opportunity to recover investments for unforeseen repairs or maintenance, but under the new system, which is expected to launch next summer, landlords will be able to apply to recover costs incurred in the previous 18 months for major capital investments.
