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Originally Posted by Makingcoin
20% in a year. Isn't there some sort of restriction/bylaw against that?
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Rent Increases
Under the existing Act, rent increases can only be justified by increased costs experienced by the landlord. Under the new Act, rent increase limits will be set by regulation. In the government news release, these were described as "initially in the range of three to four per cent, plus a consumer price index adjustment". This is a concern because the rent increases could be high. During the past 10 years, annual changes in the CPI for Greater Vancouver have ranged from 0.5% to 3.6% so (under the new Act) rent increases of as high as 7 or 8%might be charged, and the tenant would have no ability to dispute the increase. A related concern is that the incentive is lost for landlords to maintain/repair their buildings in order to justify rent increases.
Another new feature is `catch up' rent increases. The new Act allows , through regulation, for rent increases to include not only an amount for the next year, but also for increases during the previous 3 years. The concern is that this amount could be so high that tenants would not be able to afford the increase in one lump, and would be forced to look for alternative, more affordable accommodation, when little exists. Vancouver's current vacancy rate is 1.1% and the vacancy rate for lower cost units is usually less.