B.C. Rental Housing Task Force recommends cutting annual rent increase cap for tenants

Annual rent increases for tenants in B.C. should be limited to the cost of living, a provincial government task force is urging.

The recommendation by the B.C. Rental Housing Task Force would do away with the current calculation that allows landlords to charge their tenants annual inflationary increases, plus an additional two-per-cent top-up. But the idea needs government support before it could go into effect.

Spencer Chandra-Herbert, the head of the task force and NDP MLA for Vancouver-West End, said Monday the existing formula has made life unaffordable for renters with annual increases that far outstrip wage increases.

To ensure landlords can afford to maintain their buildings, they will be able to apply for additional rent increases to cover the cost of work they have done, said Chandra-Herbert.

Earlier this month, the Residential Tenancy Branch set the maximum allowable rent increase for 2019 at 4.5 per cent, the largest jump since 2004. Over the past 15 years, the lowest allowable rent increase was 2.2 per cent and the highest was 4.6 per cent.

The three-member task force has recommended the maximum rent increase formula be limited to the cost of inflation (2.5 per cent in 2019). The task force has held public consultations and reviewed existing laws, as well as approaches in other jurisdictions. The government will need to do further work to determine if there should be a cap to the additional increases landlords could charge for maintenance, Chandra-Herbert said.