VANCOUVER — A tenants’ lawyer says the British Columbia government must take swift action to end a rule that allows landlords to request much larger rent increases than they would otherwise be allowed.

Rob Patterson, a lawyer with the Tenant Resource and Advisory Centre, addressed what he called a “troubling” decision by the province’s Residential Tenancy Branch that allowed a landlord to raise rent by 27 per cent due to a rise in mortgage rates.

The landlord company successfully argued that the financial losses caused by the rate increases were not foreseeable “under reasonable circumstances” and that it should therefore be allowed to raise rent beyond the 3.5 percent limit set by the province for this year.

According to Patterson, the provision allowing landlords to request larger rent increases in the event of financial losses, including mortgage rate increases, has been rarely used.

However, he fears that the ruling could mean a “free ride” for landlords who want to protect themselves from risks by investing in rental properties.

Housing Minister Ravi Kahlon says the rule allowing landlords to request such “extraordinary” rent increases was introduced by the previous government and he has instructed ministry staff to examine the impact the rule has on tenants.

The ruling was handed down in May but has sparked widespread debate since it was published on social media this week.

This report by The Canadian Press was first published August 15, 2024.

The Canadian Press