Landlords Are About To Bring The PAIN!

The Province of BC just released their rental increase limit for January 2024 of 3.5%. This is up from the 2% limit imposed for 2023, however still does not keep pace with the annualized rate of inflation in the province.

In today's video, Surrey Real Estate Specialist, Steve Karrasch of Macdonald Realty discusses BC's 2024 rent increase announcement, the biggest factor that is driving up Canadian rental prices, and why rent cap increases may actually harm renters and even drive up the average rent in a market.

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The opinions expressed herein are solely that of Steve Karrasch PREC and not Macdonald Realty or the FVREB and should not be misconstrued as advice or the basis of an agency relationship whatsoever. Please consult your professional advisor prior to taking action on any decisions relating to the matters discussed in these videos. This communication is not intended to cause or induce breach of an existing agency agreement.

[rustyscrapper]

There's no rent control in alberta.

Rents went up 40% over the last 2 years.

And now the market is happy again. 100% of the interest rate increases have been passed onto tenants.

[OffTheBeatenPath_]

The more Govt. meddles the more problems they create.

[kurts]

All these rate hikes I think I'm gonna have some T-shirts printed "Landlords Lives Matter"

[SpecialEdDHD]

I own my condo so too bad losers. Should have gotten yours 20 years ago. Renters are modern day slaves now but not my problem. I love skyrocketing property values and vote against affordable housing. Too bad so sad.

[philisdaman]

Like you, we spent first couple of years not raising rents on our secondary property because the economics of it were fine and we have great tenants. However, between the combination of the NDP taking over and changing the allowable increases from CPI +2% to "whatever we feel like each year" and the dramatically rising costs in all areas, we really have no choice but to raise rent to the max every year going forward. Last year's 2% doesn't even cover the increase in strata, insurance and property tax... nevermind the financing costs.

The key to lowering market rate is to create choice for prospective renters. By making the economic conditions of being a landlord so unprofitable that landlords are effectively taking their stock off the market by selling their rentals, prospective tenants are now effectively in bidding wars for the few places that are available for rent as demand is far outstripping supply.

Just like how the government this week is trying to incentivize developers to build rentals by removing their GST cost, there needs some sort of "carrot" to being a landlord. You can't just exclusively use the proverbial "stick". Ultimately it's the renters who suffer most from the current marketplace, and few seem to understand that.

[pilotgirl]

Very well explained. As a landlord myself I've held off raising rents for great tenants. We have now had the talk that for the same reasons as you mention, I gotta start raising them. I'm very fair and to date I have held off, but starting in 2024, I have to raise rents or sell. My tenants, although disappointed were expecting this to happen. I keep my rents just under the going market rates for great tenants. Thanks for the perhaps painful but honest explanation.

[mauriceharting]

There are a variety of reasons why rents are extremely high these days:

1. Property taxes and municipal services are extremely high which costs are passed on to renters
2. The long term rentals comes with expensive repairs as tenants abuse the property
3. The Rental Board sides with renters over 90% of the time, which is unfair
4. Homeowners rather have their homes without long term rentals and leave that space empty or use it themselves
5. Short term rentals (airB&B) have the advantage of greater income with lower risk of damage and insurance

Solutions for long term rentals are:

a. Lower property taxes and municipal service costs
b. Hold tenants more accountable for damage they create
c. Have an impartial and fair Rental Board review
d. Encourage home owners to place their empty spaces up for rent with municipal insurance
e. Short term rentals should be limited in time per year, but only if items a through d are dealt with properly.

[adamarcher]

Hello, I live in Australia and some MPs are pushing for rent freeze and rent caps as well as more rent controls during the current housing crisis The government has placed much more rent controls on landlords. As a landlord I have always left the rent low for a good tenant however with all the law changes and the proposed rent cap and freeze and my costs increasing I have to raise the rent. I sent a letter to the government explaining the consequence of rent freeze and rent cap and more rentrols on my tenant. The response I received was to the effect the government needs to look after the tenants and rent controls were necessary. I do not think the government cares about landlords or if I sell the property they simply have there agenda. I feel the government sees renters as getting more votes. So here in Australia I have to increase the rent or I will have to sell.

[bpheard]

Cost going up shows the dollar buys less. Never forget this.

[normalisoverrated]

I suspect you realise this is an "unpopular" opinion, because you actually know it is not the right thing to do.
1. Landlord & Tenant, freely & willfully agreed to a price AND a duration. If the landlord set a 3yr duration at x amount per week, that is not the fault of the Tenant.
2. If the landlord is reluctant to sell because the rent charged is "Too low", that is not the fault of the Tenant. The landlord will just have to either wait until the agree terms of the lease are complete AND THEN increase the rent, or just sell it anyway, with fair warning to the buyer.

[bellad]

BC? British Colombia? Broward County? Bbbbb… gosh help me..

[DummMoney-rrfi]

good luck to renters. I have 1 long term renter left and they are getting the full 3.5% increase. no longer can miss the opportunity to keep up with costs. I think that you're not entirely right with the lack of supply and the reason for that. In my case we moved 3 tenants on in the last 18 months to protect our investments and to be prepared for higher holding costs, we had 2 others leave for other reasons. Now we have 4 furnished rentals, 2 student rentals and 1 LTR. If I'm any indication of reasons for supply leaving it has nothing to do with anything other than government policy. Reminder to renters to call their agent and get that primary residence at any cost, don't call Steve unless you really love Surrey

[geotabs]

Or you can do like my landlord and say your "Mother " is moving in, here is your 2 months notice.
Will then turn around and rent it out for double the rent I was paying!

[justinsward]

QUIT VOTING FOR N on D emocratic P ricks!!!

[ductdang]

The inability to catch up after not raising rent the one year is kind of bonkers. Give a benefit to tenants now, get screwed later.

[growingoldandhavingfun]

landlords can fill their houses up with all these refugees and collect the govt cheques but the damages will be through the roof.

[Hanzo]

I’m switching all my rentals over to room rental shared kitchen bathroom with owner
So bc tenancy act does not apply
Can raise rent however I want
Evict however I want
And the amount of rent from renting out all bedrooms is equivalent to renting the unit by itself

[lolettawong]

thanks for all the details information that the landlord suffers

[farscape]

Where can i find out how much i can rent is there a link i find out.

[johnadona]

Landlords should be abolished. There are too many idiot landlords out there. Ruins it for everyone