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Photo by Matt Robinson/PNG

Earlier this month, the Residential Tenancy Branch set the maximum allowable rent increase for 2019 at 4.5 per cent, the largest jump since 2004. For 2018, it was four per cent, and in 2017 it was 3.7 per cent. Over the past 15 years, the lowest allowable rent increase was 2.2 per cent and the highest was 4.6 per cent.

The three-member task force has recommended the maximum rent increase formula be limited to the cost of inflation (2.5 per cent in 2019).

The task force has for several months held public consultations and reviewed existing B.C. laws as well as approaches in other jurisdictions. During that work, it found that Ontario and Manitoba have limited rent increases to the rate of inflation for more than a decade.

Government will need to do further work to determine whether there should be a cap to the additional increases landlords could charge for maintenance, Chandra-Herbert said. He said Ontario and Manitoba both require landlords to prove they have done work before they can receive the extra rent increase.

The task force’s recommendation came earlier than its broader report, now expected in late November. Chandra-Herbert said the early release would give the government time to act before the 4.5-per-cent increase came into effect next year.

David Hutniak, the chief executive officer of Landlord B.C., said he was “quite concerned” about the idea. He said the existing formula is already inadequate in covering the costs of business.

“We’re extremely sensitive to the challenges renters are facing here. The homes we provide are built for local incomes. We don’t have the luxury of selling our units to wealthy investors. We are acutely aware of local incomes and the pressures that everybody’s facing here … but the harsh reality is, our expenses are increasing too,” Hutniak said.

The mechanism by which landlords could seek an above-guideline increase for proven maintenance expenses may sound attractive, but many landlords would not have the expertise or resources to go through a cumbersome application process for the top-up, Hutniak said.

He was also concerned that it could put the brakes on construction of rental units.

Chandra-Herbert said he had spoken to landlords who operate in Ontario and they told him the formula was not a drag on construction.