rent-increase-of-23.5%-approved-for-landlord:-rtb
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Rent increase of 23.5% approved for landlord: RTB

Bymichael

Posted August 13, 2024 11:24 am. Last Updated August 13, 2024 11:42 am. Are the high interest rates of the last few years a reason enough to allow landlords to increase rents above the allowable limit? The Residential Tenancy Branch said that was the case in at least one ruling, where one landlord was approved to hike rents by 23.5 per cent over two years. In a decision posted earlier this year , the RTB said the landlords’ application for an additional increase of that amount over two years was approved, adding they “must impose this increase in accordance with the Act and the Regulation.” “I find the Landlords have been successful. They have proven, on a balance of probabilities, all the elements required to be able to impose an additional rent increase for a financial loss for financing costs of purchasing the residential property under section 23 of the Regulation,” the ruling reads. “The Landlords seek an additional rent increase of 23.5%. Section 23(4) of the Regulation states when considering an additional rent increase application for a financial loss for financing costs of purchasing the residential property, the director may order that the increase granted under subsection (1) be phased in over a period of time. I find this rent increase significant in one installment, and I order it may be applied over two years.” The RTB ruled that in the first year, the landlords were allowed to raise rents for each of the four units by 3.5 per cent — the annual allowable — plus an additional 12 per cent. The second year could rise by whatever the provincial maximum is set at, plus 11.5 per cent. The board explains that a landlord can apply for additional rent increases “if they, acting reasonably, have incurred a financial loss for the financing costs of purchasing the residential property, if the financing costs could not have been foreseen under reasonable circumstances.” The RTB says the landlords in this situation purchased the fourplex rental property — their first such building — in October 2021. Initially, their borrowing rate was 1.9 per cent “The landlords testified that they have always used a variable rate mortgage and at the time of setting up the mortgage, the rates had been stable. At the time, there was no definitive indication that the interest rate would increase as much as it did,” the board wrote. By July 2023, the RTB says the landlords’ mortgage rate jumped to 6.65 per cent. As of May 2024, the RTB said the landlords’ rate remained 6.65 per cent. Fixing their mortgage in 2023 was reportedly not an option, with the RTB saying the landlords’ noted they were “too early in their mortgage term” and that doing so would incur a penalty that was “very large.” However, tenants cited in the RTB’s decision argued that it was “reasonably foreseeable that the rate will change,” as the landlords had a variable rate mortgage. “The Landlords should enter these kinds of financing circumstances with a cushion to absorb the rate variability,” they said. “The Landlords reached out to the Tenants in April 2023 and asked if they would be agreeable to an additional rent increase over the annual allowable limit. Tenant M.S. said the Landlords asked the Tenants for a $500.00 per month increase. The Tenants were not agreeable. Some Tenants argued that this is the Landlords’ investment, so how can this be classified as a loss when the Landlords are ‘going to come away with a million dollar house,’” the ruling reads. As a standard, landlords in B.C. may only increase rents annually to a certain cap set by the provincial government. For 2024, the maximum was set at 3.5 per cent. “Tenants must pay the increased rent, unless the increase is unlawful,” the province states on its website. “Landlords can only increase rent if they provide tenants with at least 3 full months notice. Rent can only be increased once every 12 months and must be within the yearly rent increase limit, as set by the Residential Tenancy Branch.” LandlordBC CEO David Hutniak was not available for an interview. While he was unable to review this decision specifically, he tells 1130 NewsRadio via email that “our sector is experiencing huge fiscal challenges due to the escalating operational costs especially those out of our control like taxes, insurance, utilities, and fees.” “High interest rates have exacerbated an already bad situation. Furthermore, a steady stream of regulation, layered upon layer, with rent control being the most notable, are pushing more and more rental housing providers to abandon the sector” Hutniak wrote. “So although I’ve not reviewed this specific decision, the challenges this rental housing provider has experienced I know are not unique and the approved increase is likely deficient. Nevertheless, it is encouraging to see an Arbitrator at the RTB recognize the need to make the ruling that they did.” 1130 NewsRadio has reached out to the Ministry of Housing and the Tenant Resource and Advisory Centre for comment.

renters’-rights:-everything-vancouver-tenants-need-to-know-when-facing-a-renoviction
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Renters’ rights: Everything Vancouver tenants need to know when facing a renovation eviction

ByVancouver Is Awesome

When can a landlord ask you to move out? What protections are in place for Vancouver renters? How could the Broadway Plan affect tenants and renovictions? More than 500 city blocks, upwards of 50,000 new residents, 25 per cent of the city’s rental stock, a 30-year vision and on it goes. That’s a whole lot of numbers. And a whole lot of consternation. Given the level of rancour, uncertainty and, oftentimes confusion, associated with the Broadway Plan, Vancouver Is Awesome has combed both provincial and municipal legislation to give renters a sense of what their rights are and what they’re entitled to if they have to move and what happens in the messy event of a renoviction. Given the plan likely won’t be passed until later this month – if not later –  we begin with provincial legislation taken from the Residential Tenancy Act that was updated in July 2021. When would a tenancy have to end for renovations? The first thing to note, despite what your landlord may tell you, is that most renos and repairs can be done without ending a tenancy – repainting, replacing flooring, or installing new kitchen cabinets and countertops, for example. If a tenancy is to end, these four benchmarks must be met: 1 – the landlord has all the necessary permits and approvals required by law and intends in good faith to renovate or repair the rental unit. “When a landlord is acting in good faith, it means they honestly intend to renovate or repair the rental unit so extensively that it must be vacant. The landlord would not be acting in good faith if they are trying to evict the tenant so they can rent it to another tenant for more money without doing extensive renovations or repairs,” the legislation notes. 2 – the renovations or repairs require the unit to be vacant. 3 – the renovations or repairs are necessary to prolong or sustain the use of the rental unit or the building where the rental unit is located. 4 – the only reasonable way to achieve the necessary vacancy is to end the tenancy agreement. If those criteria are met, the landlord has to apply to the Residential Tenancy Branch to end the tenancy and an arbitrator gets involved. A four-month window to end the tenancy then comes into play if the unit will be demolished; the property is converted into strata lots, non-profit or co-op housing; the unit will be used by a caretaker, manager or superintendent; or the unit will be converted into non-residential use. Here’s some good news: large-scale renos and repairs almost always require permitting approval from local government. You can check with your municipality to see if those permits and inspections are needed and get a better sense of if your landlord’s intentions are above board. More good news: the type of work that requires a unit to be vacated is usually massive and pretty self-explanatory: asbestos remediation, electricity being shut off for weeks on end, or a big fix that requires a rental unit to be stripped down to the studs to replace insulation, electrical wiring or plumbing. What kinds of renovations or repairs won’t force you to move out? Here are a few examples of what doesn’t, or very likely doesn’t, require you to get out of dodge: * re-wiring a circuit or replacing receptacles and switches. * replacing a boiler/furnace, electric baseboard heaters, faucets/fixtures, a bathtub or even the building’s roof. The only likely exception for roof replacement would be to accommodate for seismic upgrades. * replacing doors, cabinet, countertops, flooring/baseboards, appliances or interior doors. You’ve been told you have to move out. Now what? Let’s say things appear legit and your landlord has told you to move. You’ve applied for arbitration, lost and are required to re-locate.  What happens next? First off, you can accept a buyout from your landlord but are under no obligation to do so. Sadly, the law says you’re only entitled to one month’s rent if the landlord’s actions are legit. However, if those renovations and repairs aren’t done within a “reasonable amount of time” after you’re out, you are in line to receive an amount equal to 12 times the monthly rent payable under the tenancy agreement. That said, what is defined as a “reasonable amount of time,” is not clearly outlined in the legislation. Vancouver renters: What protections does the city offer? Over to the city’s renter protections, some of which are already on the books and others that are proposed as part of the Broadway Plan. Updated pre-pandemic in 2019, the Tenant Relocation and Protection Policy includes some pain relief for those who have to move. But not much. If your building is being redeveloped under a development permit, the owners or developers must provide you with a tenant relocation plan that describes how the landlord/developer will help you move. In some cases, a “tenant impact statement” will be provided to renters who are able to remain on-site during renovations. Now, if you do have to move, you’re entitled to four months’ notice and that notice can only come once the landlord or developer has all their permitting ducks in a row. The relocation assistance set out by the city includes free rent or compensation based on the length of tenancy; help with moving costs and some assistance to identify three or more places to which you could move. Renter

is-singapores-housing-model-a-realistic-solution-for-bc.s-affordability-woes?
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Is Singapores housing model a realistic solution for B.C.s affordability woes?

Bymichael

When Eby unveiled B.C. Builds in February, Khoo said many Singaporean philosophies were instantly recognizable in the provincial program, right down to the exact percentage points in one instance. Author of the article: The Canadian Press Chuck Chiang Published Aug 06, 2024  •  Last updated 3 days ago  •  7 minute read A Harbour Air seaplane takes off past office and condo towers as a boat refuels at a floating Chevron station on the water, in Vancouver, on July 25 . Photo by DARRYL DYCK /THE CANADIAN PRESS Urban planner Louisa-May Khoo says she got a sense of history repeating when Premier David Eby announced the B.C. Builds housing program earlier this year. Khoo, a University of British Columbia public scholar, was a veteran of Singapore’s planning and development sector starting in 1996 before arriving in Vancouver in 2018. When Eby unveiled B.C. Builds in February, Khoo said many Singaporean philosophies were instantly recognizable in the provincial program, right down to the exact percentage points in one instance. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Vancouver Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Vancouver Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. Sign In or Create an Account or Article content “B.C. Builds has pegged their rental rates at 30 per cent of the household income, for instance, and that’s something the (Singapore Housing and Development Board) has always stuck by,” Khoo said. It “is also pushing for things like a lot more upstream planning, which Singapore has always done for a long time,” she said. “Some of the regulations and proposals that I’ve seen in terms of the housing plan is very much inspired (by Singapore).” Singapore’s housing model, where the government plays a dominating role in land ownership, property development, financing and other related aspects of society, has been held up numerous times as a path to affordability here in Canada. But the idea isn’t without its critics, especially when much of the policy may not be applicable in the Canadian social environment. The B.C. Builds program aims to use “government, community and non-profit owned” land and $2 billion in low-cost financing to deliver middle-income homes. Eby has said that more Singapore inspirations are coming for B.C.’s program. “We’re starting with rental housing,” Eby said in a February. “We’re going to move into housing for purchases as well. This is a model that has been used in Singapore, in Vienna. … We know that it works, and we are taking that model and we’re expanding it dramatically. Article content “This is how we change the direction of housing.” To make the change by adopting the full Singaporean model, however, will be difficult, said Sock Yong Phang, a Singapore Management University economics professor. The Singapore-based researcher, who co-wrote a 2016 Asian Development Bank Institute report on the country’s housing policies, said much of his country’s unique take on housing came out of necessity. Full adaptation in a different environment, therefore, will prove challenging, she said. Singapore faces an acute problem of land scarcity, Phang said. “(So) it is a holistic framework of land-use planning and allocation, housing supply delivery, housing finance and regulation of housing demand to ensure affordable home ownership. “The framework in its entirety will be difficult to replicate in another setting.” Singapore, often described as a city-state, houses most of its 5.9 million residents on one main island totalling 730 square kilometres. That area is smaller than every top-15 most-populated census metropolitan areas in Canada, with the closest being Oshawa, Ont., at 903 square kilometres. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Article content Article content The lack of land was compounded by a lack in adequate housing when Singapore gained self-governance from Britain in 1959. Phang wrote in the report that less than nine per cent of the population was living in public housing at the time “with the majority living in overcrowded prewar, rent-controlled apartments, lacking access to water and modern sanitation,” while “others faced housing conditions comparable to today’s slums.” It led to the creation of the Housing and Development Board to build and sell public housing, as well as laws that gave government broad powers to acquire land for redistribution for “any public purpose.” As a result, Phang said about 90 per

asking-rent-in-vancouver-and-this-bc-city-grow-to-stupefying-levels
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Asking rent in Vancouver and this BC city grow to stupefying levels

Bymichael

Vancouver maintains its spot atop the rental leaderboard as the city with the highest average asking rent for a one-bedroom in Canada, while another BC city continues to challenge Vancouver for the top spot. Rentals.ca has released its latest rental report, which looks at average asking rents nationwide. Vancouver and Burnaby took the top two spots in July. The average asking rent for a one-bedroom unit in both cities increased compared to June, with Vancouver’s rising by 1.3% to $2,761 and Burnaby’s rising by 0.9% to $2,566. “Asking rents for apartments in Vancouver continued to trend upwards for the third straight month,” Rentals.ca states. Year-over-year data from Rentals.ca paints a slightly better picture, as Vancouver saw an 8.4% drop in rent for a one-bedroom unit compared to last year. Victoria also snuck into the top 10: its one-bedroom unit price increased by 0.5% compared to June, reaching $2,189. To illustrate the disparity between Vancouver and other cities in Canada, a one-bedroom apartment essentially costs twice as much in Vancouver versus Edmonton, where the average asking rent for a one-bedroom unit was $1,389 in July. Montreal is also way more affordable than Vancouver, according to Rentals.ca. The average asking rent for a one-bedroom unit in Montreal hit $1,756 in July. The disparity grows when looking at two-bedroom apartments. In July, the cost to rent a two-bedroom unit in Vancouver reached $3,666, a 0.5% increase compared to June. Burnaby remained flat, with the average asking rent for a two-bedroom unit at $3,184. The cost of a two-bedroom unit in Victoria ($2,797) is nearly on par with the cost of a one-bedroom unit in Vancouver ($2,761). In Calgary, the average two-bedroom unit was $2,157 in July. Rentals.ca says that rents across the country saw the fastest month-over-month increase in 2024 to date. “Average asking rents grew by 0.8% from June, which represents a reversal of the previous month’s decline of 0.8%. As we approach the end of the summer season, this increase is a return to average market rents hovering just above $2,200,” the report states. Rentals.ca