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Originally Posted by Traum
Steering this back towards real estate issues -- what is RS' take on the recently proposed changes to rent hike formula so that the max rate hike can only be tied to the rate of inflation?
IMO, those people on the BC Rental Housing Taskforce -- Vancouver-West End MLA Spencer Chandra Herbert (who also serves as the Premier’s Advisor on Residential Tenancy), MLAs Adam Olsen and Ronna-Rae Leonard -- are idiots. Put that rate hike limit in place, and watch how the supply of rental properties dry up even more.
I am also surprised by how many people among the general public can't see that these changes will only lead to reduce rental supply.
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Simple new landlord will just set the intial price higher to offset this. Instead of listing their one bedroom at $2000/mo they will just list it at $2400/mo. And you still have people lining up to rent it off your hands.
Just found out the person who purchase my apartment just rented it out $2400/mo. Is a one bedroom. Sure is nice is new is got A/C near metrotown. But still is only a one bedroom. My friend who currently rented her one bedroom out 2 years ago furinshed for only $1800. When her current tenant was going to move out then realize how cheap his rent is and now he is not moving. Even if she increase his rate every year is still far cheaper for him to stay.
A friend of mine who also rented out his one bedroom near metrotown around Aug listed for $2200/mo for a 490sq sutido had people lining up ready to sign the lease on the spot. Apartment was rented out the same day ad was posted up.
All I say is if rental increase is to inflation you are going to see a lot of place listed much much higher than current rate and some people might even use loopholes to kick their current tenant if the rent is too low.