New multi-family assessments could lead to higher rents across BC

New Multi Family Assessments

Recently LandlordBC spoke of assessed values of rental buildings, which in turn could render into reduced investments in existing buildings and lead to fewer new developments being made.

Representing rental property owners and managers, Chief executive of the organization David Hutniak states, another year of increased assessment values could mean higher property taxes for the owners of rental buildings — hurting both landlords and eventually renters.

Last fall, the province cut by two percent the annual rent increase that landlords can charge, limiting increases to the CPI, which for 2019 is 2.5 percent.

But with possible property tax increases looming as a result of high assessments – as a result, landlords may delay investments, whether that be minor repairs to significant improvements putting them off entirely.

B.C. Assessment, which sent out more than two million property assessments earlier this month, told Glacier Media that the median assessed value of multi-family buildings in Greater Vancouver rose by 10% year over year in the 2019 roll.

With pressure on both sides – wanting to enhance buildings for safety yet having to deal with your only source of income [rent] can put a strain on any landlord.

Buildings being assessed thousands last year but millions the next year, it is normal to think property taxes will jump. The 2019 assessment may threaten the ability to maintain rental housing which can even place the best of landlords to despair. This could also lead to evicting tenants in order to renovate, and then warrant a higher rent for a refurbished unit.

LandlordBC has reached out to the province to discuss what might be done.

 

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