Above Guideline Rent Increase for Capital Expenditures Info Package
There has been some discussion around the AGI for Capital Expenditures that was passed by the provincial NDP in 2021. The New Westminster Tenancy Union has seen some recent incidences of landlords applying for the rent increase and want to keep tenants informed on this issue. NWTU has put together this information packet detailing what the AGI is and what you can do about it. Our contact information is listed at the bottom of this post. Please reach out to us for further information, any concerns you may have or if you want to get involved in the NWTU.
Additional Rent Increases for Capital Expenditures
5 things Tenants need to know:
- What is it? Each year BC landlords can increase your rent by a set amount, usually 1-3%, but a new law was passed in 2021 that says your landlord can raise your rent extra under special circumstances
- What are the special circumstances? If your landlord makes a major repair or upgrade to your building. Upgrades can be to increase security or make the building more environmentally friendly.
- How much could my rent increase? If the repair or upgrade your landlord makes is expensive you could get an extra 3% increase in rent every year for 3 years, then have to pay that rate for 7 years after that. That’s a 9% total increase you have to pay for 7 years!
- Can I dispute it? Yes, but you need to prove that your landlord was not following the rules set out by the new law. To dispute it you have to attend the pre-hearing, or if you cannot make it you have to indicate in writing you're letting someone else, like a neighbour, speak on your behalf. You usually have a month to prepare for the pre-hearing.
- How do I dispute it? Landlords can’t raise the rent to pay for repairs that are needed because they neglected the building, everyday maintenance, renovations to make the building look nicer, that they could get government grants to pay for, that they are paying themselves to do, or that don’t actually make the building more environmentally friendly.
The BC Provincial Government approved a law is that unfair to BC Renters, and is putting people at risk of having rent increases they can’t afford.
If you would like more information or to get involved in organizing your building, visit our website at nwtenantsunion.org.
4 things Tenants can do to protect themselves:
- Know your rights. Keep this pamphlet, and ask questions when you need to. Go to nwtenantsunion.org for more detailed information.
- Document everything. When you see something that needs to be repaired in your building, take a picture of it, and record the date. Make all your requests for repairs in writing and include the current date and the date you want to see repairs done by. Keep copies of everything, including your landlord’s replies, in a safe place.
- Talk to your neighbours. Your neighbours might know things happening in the building that you don’t. The better you know them now, the easier it will be to share information and work together if your landlord applies for an unfair rent increase.
- Talk to the NWTU. The New Westminster Tenant’s Union can help you learn what your rights are, what to document, and help you to connect and have meetings with your neighbours if you are facing an unfair rent increase or other problems with your landlord. We are strongest when we work together!
Wait, this seems unfair to tenants…
It is! Usually business owners have to account for maintaining and upgrading their assets as part of their normal expenses, but landlords can force tenants to absorb these costs. Tenants can’t take their business elsewhere because they need a place to live. Landlords get paid twice: first in the extra rent they get, and second in the increased value of their building from the repairs and upgrades.
The BC Provincial Government approved a law is that unfair to BC Renters, and is putting people at risk of having rent increases they can’t afford.
If you would like more information or to get involved in organizing your building, visit our website at nwtenantsunion.org or contact us by email at nwtenantsunion@gmail.com or message us through Facebook at https://www.facebook.com/nwtenantsunion.