Tenants, landlords divided on allowable rent increase announced by IRAC

Tenants and landlords are divided in their opinions on the rent increase announced by the Island Regulatory and Appeals Commission earlier this week.

The increases are the largest since 2013, and include a separate category for electrically-heated premises for the first time.

• Oil-heated: 2%
• Electrically-heated: 1.75%
• Unheated: 1.5%
• Mobile home site: 1.5%

While it won't happen until next year, many told CBC that even the idea of paying more has them nervous and any sort of price hike feels unfair.

That includes Buzz Caravan, a fourth year kinesiology student at UPEI who rents a room near campus and said it's already difficult to afford housing.

Caravan goes to school full time, and only works on a part-time basis. She already spends money on commuting to and from her job.

She said an increase in rent could mean having to pick up more shifts, and dedicate less time to her studies.

"It just seems like they're already getting so much money out of us and electric and Wi-Fi keep going up as well and then it just makes everything else less affordable."

For others —  like Misael Juarez — the news of a rent increase adds to the worry of finding an affordable home at all.

Juarez is an international student from Mexico attending Holland College and he's looking for an apartment because where he is living now won't be available much longer. He said he's had difficulty finding a place and there aren't many options available. 

"Right now I feel a little nervous because we haven't found something and we only have one week left so we have to hurry up to find something," Juarez said.

Low vacancy rates in the province

Jim Stone rents a bachelor apartment in Charlottetown and is on social assistance. He's given $600 a month for rent.

"A rent increase would actually take away from my food allowance," Stone said.

"My whole situation is going to be a lot harder than it is right now."

But several landlords on P.E.I. said they feel the price increase is not only justified, but not enough.

Tim Banks, who owns several rental units across P.E.I., said he will likely raise the rent on his apartments on a case by case basis.

"I don't want to increase the rent for anybody but at the same point I can't stop the bank from increasing the interest rates and I can't stop the fuel companies from increasing the oil rates," Banks said. "There's a whole host of things that's involved." 

Costs for everything rising

Property managers point to the rising costs involved with things like taxes, fuel, snow removal and building maintenance to keep the business operating. 

"I do realize it impacts some people, but in order to run the properties properly, we do have to absorb those costs so the increases that IRAC allows, we certainly do implement," said Dan Sampson, director of property management with Killam Apartment REIT.

Sampson said the allowable rent increases change from year to year. In 2016, IRAC did not post any allowable rent increases, forcing businesses to deal with rising costs without raising rents.

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