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Vancouver city council approves rent-increase limits for private SRO hotels

by Martin Dunphy on November 18th, 2021 at 4:39 PM
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      Vancouver city council has approved rent-increase limits for private single-room occupancy (SRO) hotels.

      At a November 17 meeting, vacancy control regulations were approved by Mayor Kennedy Stewart and all councillors except Melissa De Genova.

      Council previously requested city staff to supply a report and recommendations to deal with the issue of SRO-hotel tenant displacement as a result of rent increases between tenancies. Many Vancouver SROs are in the Downtown Eastside neighbourhood.

      That report, plus appendices, can be read in its entirety here.

      "Investors purchasing SRO buildings and significantly increasing rents between tenancies after completing minor renovations is one of the drivers of housing instability for the City’s lowest-income residents," the city said in a November 18 release regarding the new regulations.

      The regulations and their associated bylaws will come into effect after the approval of their associated costs in the 2022 budget.

      Allowable rent increases between tenancies will be restricted to the following, as reported in the city release:

      • For rooms that rent for more than $500, rent can now only increase at the rate of inflation (~2%)
      • For rooms that rent for less than $500, rent can now only increase by the rate of inflation (~2%) plus 5% (~7% total)
      • For rooms that rent for less than $375 a month (the current shelter component of income assistance), rent can be increased up to $375

      The new rules allow for owners of SRO hotels that require significant upgrading to apply to the city for "rent relaxation" between tenancies if they have previously obtained approval from the provincial Residential Tenancy Branch to increase the rents for occupied rooms.

      “Speculation and rising rents in SROs are pushing our neighbours out onto the street and Council is taking action to fight back,” Stewart said in the release. “While these new rules will help stabilize rents for our lowest income neighbours, there’s more to do. That’s why I continue to work with Federal and Provincial Housing Ministers [Ahmed] Hussen and [David] Eby on Vancouver’s bold plan to transform this critical housing into safer and more supportive places to call home.”

      Councillor Jean Swanson posted the below tweet following the November 17 council vote; included are some responses to her tweet.

       

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