Vancouver Sun -- B.C.’s two-tier system of rent control needs to change

[Traum]

Daphne Bramham: B.C.?s two-tier system of rent control needs to change

It’s nonsensical that the B.C.’s Residential Tenancy Act doesn’t protect renters with fixed-term leases from exorbitant annual rate hikes.

It would be one thing if, on principle, the government refused to control residential rents. But it doesn’t and it hasn’t.

Since 2002, British Columbia has had a two-tiered system where fixed-term renters get no protection, while those who rent month-to-month do. The legislation restricts landlords with monthly renters to a set annual increase. This year, the cap is 2.5 per cent.

Yet landlords who have the benefit of long-term tenants get the added bonus of being able to set whatever price they want when the term is up. It can lead to gouging, particularly now when the vacancy rate in Vancouver is virtually zero.

It means that renters are left with a lousy choice: Take a short-term rental and risk being asked to leave with only 30 days’ notice or sign a lease and risk having the rent skyrocket at the end of the term.

There are egregious examples of this price gouging, as The Sun’s Bethany Lindsay has reported.

When Adam Saint’s yearlong lease was nearing its end, the West End building’s owner Gordon Nelson Inc. jumped the price to $1,850 from $1,550. That’s close to a 20-per-cent increase and eight times what landlords with monthly tenants are allowed.

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full article available at the above link

Holy shxt... so my family has been doing it wrong all these years. We always sign fixed term leases with our tenants, but have always thought the annual rent increase ceiling applies as well.

Moral of the story:
1) always sign a fixed term lease with your tenant
2) set a 100% rent increase if you want to kick them out when the contract term ends

[604STIG]

Originally Posted by Traum

West End building’s owner Gordon Nelson Inc. jumped the price to $1,850 from $1,550. That’s close to a 20-per-cent increase and eight times what landlords with monthly tenants are allowed.

If you applied the monthly increase of 2.5% to that $1,550 then after 12 months it would equate to $2,084.xx/month. So it actually works out cheaper.

[Traum]

Originally Posted by 604STIG

If you applied the monthly increase of 2.5% to that $1,550 then after 12 months it would equate to $2,084.xx/month. So it actually works out cheaper.

That is not how the max rent increase cap works, dude. The 2.5% is an annual rate. The way you are doing it is a compound interest rate, applied on a monthly basis.

[Carl Johnson]

Originally Posted by Traum

Daphne Bramham: B.C.?s two-tier system of rent control needs to change


full article available at the above link

Holy shxt... so my family has been doing it wrong all these years. We always sign fixed term leases with our tenants, but have always thought the annual rent increase ceiling applies as well.

Moral of the story:
1) always sign a fixed term lease with your tenant
2) set a 100% rent increase if you want to kick them out when the contract term ends

nothing against you personally, but what you've just said is exactly the reason why renting sucks. although i'm not against short-term renting, you have guys like 4444 on this forum relentlessly saying how superior renting is compare to owning; however, the housing bears will never acknowledge the weak and unstable position being a renter truly is - especially when you got a family.

not only does a renter have to worry about exorbitant rent increase from greedy landlord, a renter can also be kicked out if the relationship turns sour. don't give me any of that RTB law protecting the tenant because if the landlord really wants the tenant gone, there are always ways to do it, be it legally, financially or psychologically.

[4444]

Originally Posted by Carl Johnson

nothing against you personally, but what you've just said is exactly the reason why renting sucks. although i'm not against short-term renting, you have guys like 4444 on this forum relentlessly saying how superior renting is compare to owning; however, the housing bears will never acknowledge the weak and unstable position being a renter truly is - especially when you got a family.

not only does a renter have to worry about exorbitant rent increase from greedy landlord, a renter can also be kicked out if the relationship turns sour. don't give me any of that RTB law protecting the tenant because if the landlord really wants the tenant gone, there are always ways to do it, be it legally, financially or psychologically.

you're 100% right, but you don't have to sign a fixed term contract.
it is a fallacy that there aren't enough rentals in vancouver, if you find one you like, make sure it's a monthly contract.

BC has rules that are extremely renter friendly. you should see what goes on in places like Arizona - you leave before your contract is up, or don't pay your last month's rent, boom, goes on your record, credit is hurt even more. that's why i'm a landlord in Arizona and was a renter in BC.

There are dumb landlords out there, there are dumb renters out there - this is true in EVERY market. Just be smart, and you're ok.