VANCOUVER _ The B.C. government has announced it’s closing another loophole in residential tenancy regulations in an effort to keep rental rates affordable.
MLA Spencer Chandra Herbert says the province is eliminating a clause that permits landlords to raise rates above the allowable rental increase limit to match high rents within a geographic area.
The current allowable rent increase is set at four per cent but the clause allows landlords in hot markets to raise rents at significantly higher rates to match neighbouring prices.
The Tenant Resource and Advisory Centre says some renters have reported agreeing to increases of 30 per cent after a landlord threatened to raise rates by as much as 50 per cent.
The province says by getting rid of the clause, renters no longer have to fear significant rent increases based on the market where they live.
The change follows the NDP government’s announcement in October that it would eliminate vacate clauses and restrict rent increases between fixed-term tenancy agreements _ all of which come into effect Monday