New rental tower in Canadian city uses controversial fixed-term tenancy agreements
Fixed-term agreements allow landlords to raise rents above provincial cap, evict tenants more easily
A new rental building that received millions in incentives from the City of Vancouver is using a legal but controversial form of tenancy agreement that allows for unlimited rent increases and makes it easier to evict tenants.
“We have one-year fixed terms,” a spokesman for Aquilini Developments said of its West Tower rental project, now open and one of three Aquilini will build next to BC Place Stadium in downtown Vancouver.
The development was exempted from paying C$54 (US$41) million in development cost levies. The City of Vancouver does not charge community amenity contributions, a separate fee, for new rental projects.
Fixed-term rental agreements have come under fire from tenant advocacy groups because they allow landlords to circumvent the annual cap on rent increases allowed under the BC Residential Tenancy Act. The act restricts increases to 2.9 per cent in 2016, but tenants under fixed-term agreements report rent increases of between 10 per cent and 30 per cent.
Evan Allegretto, director of development for Wesgroup, said his company has yet to decide what form of tenancy it will use for two rental buildings in South Vancouver that are scheduled to be completed in 2017. Wesgroup currently does not use fixed-term agreements in its rental projects, he said.
Cressey Development Group will use standard month-to-month agreements for a 110-unit purpose-built rental project recently approved for Commercial Drive.