Jacking Rents in 2019 – A Rebuttal of Sorts

Published in The Northern Sentinel September 2018  *Update: increase now decreased from 4.5% to 2% in 2019 – blog to follow*

The NDP Government is allowing for a rent rate increase of 4.5% in 2019, compared to the maximum 4.0% previously allowed under Landlord & Tenant Act Regulations.

In a recent CBC News online article by Alex Migdal on September 8, 2018 titled “B.C. renters set to face biggest rent increase since 2004”, he writes “B.C. landlords will be allowed to jack up rents by as much as 4.5 per cent in 2019 — the biggest increase since 2004, when it was capped at 4.6 per cent.”

I would like to point out that Mr. Migdal’s information is incorrect on many points and I am very opposed to the term “jack up rents” as it implies that landlords are not entitled to increase revenue for a very expensive service that is provided, often at a cost instead of a profit.

For an alternate perspective, below is the Maximum Allowable Increase as stated directly from the BC Government website at https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/during-a-tenancy/rent-increases.

”Landlords can only increase the rent once in a 12 month period by an amount permitted by law or an additional amount approved in advance by an arbitrator – they need to use the right form and give the tenant three full months’ notice of the rent increase.”

Below is the rent increase table percentages since 2010 – a span that clearly shows a steady and necessary yearly increase.  In fact, there was a significant adjustment in lower percentage rent increases after 2013.

   Year                   Maximum Allowable Rent Increase

2019                                                   4.5%

2018                                                   4.0%

2017                                                   3.7%

2016                                                   2.9%

2015                                                   2.5%

2014                                                   2.2%

2013                                                   3.8%

2012                                                   4.3%

2011                                                   2.3%

2010                                                   3.2%

 

Clearly, no one is getting “jacked”.

The bigger question that needs to be asked is ‘who is responsible to make sure that housing stays affordable’?  Is it up to the tax paying homeowner/business owner or the Government programs who limit funding?

The BC Government and the Government of Canada keep processing more and more people onto social funding programs at ludicrously low allowances for monthly rent amounts.  This creates communities where a family’s income cannot support adequate housing.  Who is responsible to make sure this family has a home they can afford under the Government’s allowable rent rate per month?

While there are a lot of bad landlords out there, there are 10 times as many good ones.  A landlord (the person who pays the mortgage as opposed to the employee that collects the rent and unplugs kitchen sinks) shoulders the cost of the regular mortgage interest rate increases, the cost of repairs and maintenance to the property, sometimes includes lawn care and snow removal, pays city or local taxes, pays taxes on the rent they collect per month, pays utilities, pays for replacement appliances and furnaces in addition to paying to advertise the unit for rent.  The list of landlord financial responsibilities is long and usually expensive.

In the Province of BC, the security deposit or damage deposit on a unit is equal to one half of the total month’s rent.  On a 3 bedroom bungalow style house with yard and garage at $1,200.00 rent (where the writer lives) the deposit would be $600.00.

If a tenant leaves the unit without notice, the landlord is out rent for the following month.  If a tenant leaves a mess to clean up and garbage to remove, the landlord pays for that.  If the tenant doesn’t pay the utility bills and leaves the unit, the landlord is responsible to pay that utility bill.  The costs add up quickly and will often times soar past the deposit amount.  The Landlord has no choice but to pay for the repairs and cleaning in order to be able to rent the house out again.

The first thing that has to change is the Landlord & Tenant Act itself.  The laws are increasingly tilting towards protecting tenants instead of the people who pay taxes to provide the housing.  Landlords need to pay attention to the changes that are being made on their behalf, without their input on any level about any issue relating to policy changes.

If the BC Government and the Government of Canada will not increase the monthly amount allowable for housing, then they should start building community housing centers and take care of the mess they created.  Why should the private citizens’ and business owners shoulder the responsibility of providing “affordable housing”?

A rental property is a business, just like a convenience store.  Price of milk too high? There is another store right up the street.  Prefer to pay a little more for a quiet, out of the way neighborhood?  No problem – there will be a higher priced rental to suit one’s needs.  No one is telling the convenience stores to stop increasing the price of pop so why should homeowners accept withholding rent prices and decreasing rent amounts to suit what the lower income public can afford?

Yet tenants never ask the convenience store to let them leave with their snacks and drinks and expect to pay on the next payday.  Landlords go without rent payments on time, all the time.  There is more respect for the person that rings in potato chips than there is for the person putting a roof over a head.

In an effort to be solution driven and not problem focused, my suggestion would be to have tenants and landlords stop treating both sides like enemies and start learning how to work together.  There are many ways to make the landlord and tenant relationships worthwhile and affordable on both sides.

Instead of focusing on an increase of 4.5% next year, which landlords desperately need and most tenants can’t afford, let’s start a discussion to figure out a way to make the Federal and Provincial Governments accountable for increasing funding for basic needs.

Here is a suggestion that might stick – the Government(s) should pay the homeowners the 4.5% directly at the end of 2018, with an increase to 6.5% yearly for 10 years; kind of like a cash back system.  The tenants are already paying more than they can afford.

This issue will be followed up regularly and will feature ways to get involved, be productive in the community, how to effectively communicate and resolve tenancy issues without resorting to drawn out battles.

There has to be a better way.  Housing should never be something to worry about.  We live in a country with plenty of space, resources and options.  Let’s start discussing how to use these resources to create communities where every person and family has an affordable home.

No person left behind.  No child left unsheltered.  Sounds easy, doesn’t it?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.