Tenant advocate decries ‘troubling’ ruling that let landlord hike rent by 27 per cent

VANCOUVER – A legal advocate for tenants says the B.C. government should take swift action to get rid of a regulation allowing landlords to apply for rent increases far bigger than otherwise allowed.

Rob Patterson, a lawyer with the Tenant Resource and Advisory Centre, was addressing what he calls a "troubling" ruling by the province's Residential Tenancy Branch allowing a landlord to increase rent by 27 per cent because their mortgage rate had gone up.

The landlord company successfully argued that financial losses caused by the interest rate hikes were not foreseeable "under reasonable circumstances," and it should be allowed to increase rent beyond the 3.5 per cent limit set by the province for this year.

Patterson says the regulation allowing landlords to apply for bigger rent increases due to financial losses, including mortgage rate increases, has been rarely used.

But he's worried the ruling may mean "open season" for landlords hoping to insulate themselves from risk when they bet on investing in rental housing.

Housing Minister Ravi Kahlon says the regulation allowing landlords to apply for such "exceptional" rent increases was put in place by the previous government and he's directed ministry staff to review how it affects renters.

The ruling was made in May but has been widely discussed when it was posted on social media this week.

This report by The Canadian Press was first published Aug. 15, 2024