Protecting the Rent?
Protecting the Rent?
The B.C. government has announced changes to the province’s annual allowable rent increase formula that are expected to save many renters hundreds of dollars next year. Premier John Horgan and Housing Minister Selina Robinson announced Wednesday that they’re accepting the Rental Housing Task Force‘s recommendations and tying rent hikes to inflation alone, a change from the current formula of inflation plus two per cent. So what does this mean for property owners?
Under the new formula, renters paying $1,200 a month – the average rent in the province – are expected to save up to $288 in 2019, according to the government. The previously approved increase would have seen people living in the average two-bedroom apartment in Vancouver paying up to $432 more, the province said. Fortunately, landlords will be able to apply for additional rent hikes if they can demonstrate they’ve been investing in their property.
It’s unclear what kind of rent increases will be allowed under those exceptions, but the province will be doing further consultations to make sure landlords’ needs are met. Even with those exceptions, there have been concerns expressed that the changed formula will make developers less inclined to build rental properties. B.C.’s task force is still completing its report on improving landlord and tenancy laws, expected to be released in November.
Given the constant change taking place in varying areas of the market, it’s important to stay knowledgeable and aware of these policies as can affect property value, rent price, and many other factors! Let’s start talking to help you give a better perspective on what to look for and where to look for it in this evolving marketplace.
With another month gone by, so much has changed and things are moving faster than ever. Yet, the story remains the same: the Okanagan real estate market is still soaring with no signs of slowing down. Last year we saw average home prices go up steadily,...
The Okanagan market continues to flourish with inventory at an all-time low and buying interest continuing to rise, specifically from larger urban centres. Now with the weather getting nicer, we’re also seeing a shift in focus from residential properties...
It’s been one year since COVID-19 began affecting our lives here in the Okanagan, and it’s fair to say that nobody expected what followed. After an uncertain spring season in 2020, many Canadians took the time to reevaluate their lifestyles and living...