'Problematic' renters are abusing B.C.'s tenancy laws, landlord petition claims

A sign advertising a rental unit. (Shutterstock)

A group calling itself the Landlord Rights Association of B.C. has launched an online petition asking the province to make sweeping changes to tenancy laws, saying the current system is unfair and is being abused by "problematic" renters.

The petition lists 10 demands including reintroducing fixed-term leases, increasing the amount of allowable rent increases, quadrupling damage deposits and speeding up the process for dispute resolution through the Residential Tenancy Branch.

"We strongly believe and it is evident from various cases that current tenancy laws are being abused by far too many problematic tenants for their own advantage," the petition reads.

"These problematic tenants take advantage of outdated laws and create a chilling effect that discourages potential and existing landlords from renting out viable space and thereby depriving a vast number of renters of potential rental opportunities. In our view, tenancy law reform equals greater access to affordable housing for tenants."

FIXED-TERM LEASES

A fixed-term lease is one that expires at a specific time, requiring a renter to sign a new rental agreement while also giving the landlord the option of ending the tenancy. In 2017, the petition notes, the Residential Tenancy Act was changed so that a renter can no longer be told to vacate the unit at the end of the lease.

This, according to the petition, is depriving landlords of a useful tool with which to end "problem tenancies." Walking back the 2017 change would "raise no concerns for tenants who abide by the law," the petition adds.

The Ministry of Housing, in a statement to CTV News, says the legislation was changed in order to close a loophole wherein landlords were able to use the end of a fixed-term lease in order to impose "massive rent hikes." In these cases, the signing of a new lease would allow landlords to raise rates far beyond the allowable annual rent increase, the ministry said. Currently, fixed-term tenancies revert to month-to-month contracts at the end of the lease, preserving the existing agreement, binding the landlord to the maximum annual increases and requiring them to pursue a formal eviction if they want a tenant to leave.

"We have no plans to change this," the ministry said in response to the petition.

INCREASING RENTS, DAMAGE DEPOSITS

When it comes to allowable rent increases, the petition has several distinct demands. The first is to bring back the formula that was used until 2018 where the rate was calculated at inflation plus two per cent. Starting in 2019, the amount was capped at the rate of inflation.

This year, B.C.'s allowable annual increase was 3.5 per cent, marking the second year it has been lower than the Consumer Price Index. This, the petition says, has not been enough to cover "landlords' skyrocketing expenses such as mortgage, insurance, property tax, utilities, and maintenance fees."

The housing ministry says the province "intends" to match the allowable increase amount to inflation when the rate "returns to normal levels." There is no plan to go back to the pre-2018 formula.

On average, long-term tenants pay lower rates than newer ones. The Canada Mortgage and Housing Corporation, in its annual report for 2022, noted that a unit that turned over to new tenants in Vancouver saw a rent increase of 23.9 per cent – far, far higher than the allowable increase for tenants who stay put.

The petition says too many long-term renters are paying below-market rates.

"This is often insufficient to offset the landlord's increased costs let alone allow for a reasonable profit," it reads.

"Landlords must be allowed to raise the rent [as per current and fair market rent] for those tenants who are paying well below market rent."

Increasing the damage deposit from half a month's rent to two months' rent is another demand, with the petition saying the current amount is far too low and "almost always causes losses to landlords even for normal but sloppy tenants."

The housing ministry did not comment on any of these demands specifically but did say there are ways for landlords to offset costs associated with making improvements to their properties, including applying for permission to increase rent.

"We want to ensure renters can afford a home and we also want to ensure landlords can make necessary repairs and maintain their rental properties so they can continue to provide rental housing for years to come," the statement from the ministry says.

Affordability has long been one of the most pressing concerns for tenants and their advocates in B.C. as rents and homelessness continue to rise to unprecedented levels.

The significant jump in rents between tenants is something advocates have been raising the alarm about, saying the current rent control measures in place don’t go far enough to keep prices down.

Organizations like the Vancouver Tenants Union, for example, have been pushing for vacancy control – which would limit the amount rent can be hiked when a unit changes hands.

British Columbia also has the highest eviction rate in the country, according to recent data that showed 10.5 per cent of renters lost their housing between 2016 and 2021. The vast majority of those evictions were 'no fault,' meaning they were not a result of tenants' breaking rules or failing to pay rent. 

RTB WAIT TIMES

A number of the demands in the petition have to do with making changes to the way disputes between landlords and tenants are adjudicated. According to the petition, the wait times for hearings and decisions with the Residential Tenancy Branch are too long.

"Landlords and tenants are left in a dubious state when they wait for months to resolve disputes and problematic tenants who are misusing the strained system for their own benefit. The slow process and lack of enforcement are important concerns for tenants but especially landlords," the petition says, including data on wait times from September of 2022.

The housing ministry says it has made progress on reducing delays in the past year by hiring more staff and streamlining some processes by eliminating the need for a hearing.

However, the targeted timelines are still not being met. For example, the service standard for an emergency hearing is two weeks and the wait time last month was three. For regular applications, the goal is six weeks but the actual wait time was 11.

The petition is also asking for tenants' names to be published in RTB decisions, something it says will allow landlords to "quickly obtain information on potentially difficult tenants."

Additional demands have to do with creating ways for landlords to recoup costs associated with evicting tenants, decreasing the amount of notice required for an eviction, and expanding the definition of a "close family member" in cases where a landlord wants to evict a tenant so they can move someone else in.

As of Tuesday, the petition had gathered more than 2,000 signatures.