Two B.C. landlords whose costs have skyrocketed – due to their variable-rate mortgage – have been allowed to impose huge rent hikes on their tenants to offset their financial losses.
Two B.C. landlords whose costs have skyrocketed – due to their variable-rate mortgage – have been allowed to impose huge rent hikes on their tenants to offset their financial losses.
In a recent ruling, an arbitrator with the province’s Residential Tenancy Branch approved increases totalling 23.5 per cent over two years for each of the landlords’ four rental units.
That’s on top of the 3.5 per cent annual increase previously approved by the B.C. government for 2024.
“The landlords experienced dramatic interest rate increases which have made managing the property unsustainable,” reads the ruling, which was published in May.
The landlords, who are identified only by the initials S.O. and K.O., argued they had good reason to expect the rate would remain low when they purchased the property. The Bank of Canada had kept its interest rate low for more than decade, as part of the government’s effort to stimulate the economy following the 2008 recession.
… in 2021? We were in the middle of a global pandemic, economy was already starting to show signs of stress, and a nationwide property values had shot up 25% YoY. How did they even manage to make the argument that anyone in their right mind would expect interest rates to remain low until the end of their term?!
You raise a great point. That’s @#$%ing absurd. It sounds like the “an arbitrator with the province’s Residential Tenancy Branch” was unqualified to work on this case if they do not understand that economic point
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… in 2021? We were in the middle of a global pandemic, economy was already starting to show signs of stress, and a nationwide property values had shot up 25% YoY. How did they even manage to make the argument that anyone in their right mind would expect interest rates to remain low until the end of their term?!
Because they’re ignorant and entitled.
You raise a great point. That’s @#$%ing absurd. It sounds like the “an arbitrator with the province’s Residential Tenancy Branch” was unqualified to work on this case if they do not understand that economic point