Landlords just as unhappy as renters about 2024 BC rent increase cap

Earlier this week, landlords and renters learned the number that the BC government had settled on for the rent increase cap, which takes effect on January 1, 2024, and it isn’t just the renters who are unhappy.

BC’s housing minister, Ravi Kahlon, stated that the government had found a balance, arriving at 3.5%.

The reaction to the announcement was overwhelmingly negative.

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Across social media and our articles covering the announcement, many residents, including landlords, reflected on how this decision impacts the people who provide rental housing for renters, who in BC and specifically in Vancouver, are paying the highest rates across Canada.

Renters may disagree with this assertion, but Kahlon suggested that landlords face the same challenges.

David Hutniak, CEO of LandlordBC, appreciated the thoughtfulness but isn’t thrilled with the situation and thinks the case for landlords regarding rent in BC needs to improve.

“While we were pleased to hear the premier and housing minister recognize that landlords are equally challenged in today’s high inflation and interest rate environment, we were nevertheless disappointed that the province felt it was necessary to intervene, once again,” he told Daily Hive.

Hutniak reflected on the rent increase freezes in 2020 and 2021 during the pandemic and how the cap was just at 2% in 2023.

“During the same period of time, landlords experienced exponential expense increases to property taxes, insurance, utilities, repairs and maintenance just to name a few cost drivers.”

Hutniak suggested a “significant disconnect” exists between the increase landlords are permitted to apply and the reality behind operating rental housing. He also acknowledged the situation for renters.

“We appreciate that renters are challenged. They need help, and it is in [the] government’s court to help them, but not while harming landlords at the same time. We need workable solutions,” Hutniak said.

“Renters need to understand that critical to attaining affordability is maintaining and growing the rental market.”

Hutniak added that the rental housing market is in a “precarious state” because of high interest rates and the costs he alluded to.

He also had a message for rent control advocates, suggesting those people are ill-informed.

“We are already seeing an exodus of landlords from the sector. Rent control is a blunt tool continuing to deal a blow to BC’s rental housing market.”

Hutniak referenced a report that suggested some landlords with viable space to rent out aren’t doing so because of the fear of problem tenants “or an unbalanced Residential Tenancy Act.”

“If this housing could be unlocked, imagine how much pressure would be released?” Hutniak wondered.

“All of this is plainly contrary to the broad interests of tenants and the urgent housing needs in our province.”