Could bigger rent increases help ease housing crisis? Union of B.C. Municipalities thinks so

The Union of B.C. Municipalities has put forward 32 recommendations that aim toease the province's housing crisis including a proposal to increase how much landlords can raise the rent.

It's a move that's drawing criticism from at least one group that represents Vancouver renters.

Currently, landlords in B.C. can only increase their tenants' rent once a year by a percentage set by the province. In 2018, that amount was four per cent.

But the UBCM says constricting rent increases too much cankeep landlords from makingsignificant improvements to their properties especially for older rental stock that needs major repairs.

"We did hear loud and clear that the small amount that rents can go up won't even cover the costs of maintaining the building," said Greg Moore, chair of the UBCM'shousing committee and mayor of Port Coquitlam.

"They need a substantial improvement to keep up to today's standards."

Moore pointed out that older, purpose-built rental buildings are often the most affordable homes, so it makes sense to keep them on the market for as long as possible.

'No one quick fix'

The recommendations were spotty on the specifics of how the rent increase would work.

Moore explainedthat it was enough of a challenge for committee to put together the 32 recommendations since itwas convened six months ago, prompted by a province-wide housing crisis.

"There's no one quick fix to this situation that we're in," he said, emphasizing the need for cooperation from the provincial and federal governments.

The committee's otherrecommendations for rental properties include a tax credit for new purpose-built rental housing,creatingzoning for affordablerental housing to avoid speculation, and supporting the development of new co-operative housing.

The recommendations also included strategies on how to limit demand and speculative home purchases.

'We want to invest in our buildings'

David Hutniak, the CEO of Landlord B.C.,agreed that an increase on raising the rent would be helpful for landlords.

"We want to invest in our buildings," Hutniaksaid.

"Right now, generally, there's just not a whole lot of incentive for many landlords to make those significant investments in their properties becausethey have no way of recouping them."

Hutniaksaid there are some allowances for more substantial rent increases available through the Residential Tenancy Act, but they require landlords to go through an arbitrator.

"All the gyrations you need to go through to seek an above-level increase, it's just not worth it," he said.

'Struggling to make the rent'

But Derrick O'Keefe of the Vancouver Tenants Union said the idea of raising the maximum allowable rent increase was problematic.

"Renters,especially middle and low income, are struggling to make the rent," O'Keefe said.

He pointed out that afour-per-cent increase on an average-priced two-bedroom home in Metro Vancouver, last calculated at $1,552 per month, would cost a tenant $745 per year.

O'Keefeaddedthat rents in some neighbourhoods in Vancouver have more than doubled because landlords can increase rent by as much as they'd like between tenants whether they make any improvements or not.

That's why theVancouver Tenants Union is advocating for the province to tie maximum allowable rent increases to housing units instead of to renters.

One strategy the union and the UBCM do agree on, however, was involvement from other levels of government.

"We'd like to see the federal and provincial governmentpermanently in the business of building and maintaining the housing stock," he said.

Moore said the UBCMhopes to work closely with both in the coming months.