'I have nowhere to go': B.C. is Canada's eviction capital, new research shows | Canada News Media
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‘I have nowhere to go’: B.C. is Canada’s eviction capital, new research shows

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Roughly one-in-10 households that rent in B.C. say they were forced to move during a recent five-year period, a significantly higher eviction rate than any other region in Canada, says a new University of B.C. report.

This province is an outlier in the national data for another reason revealed for the first time: The vast majority of evictions in B.C. — 85 per cent — are deemed to be at “no fault” of the tenants, and that rate is far greater than the national average of 65 per cent.
That means in B.C., compared with other provinces between 2016 and 2021, tenants were far more often asked to move for reasons such as landlords needing to use the property themselves, selling it, or demolishing or renovating it, the report says.

This is in sharp contrast to previous research that showed, between 2004 and 2017, that evictions in B.C. were more commonly due to something the tenant had done, such as failing to pay rent, and very infrequently for reasons such as landlords wanting to move into their units.

Craig Jones is the director of the UBC Housing Research Collaborative and has written a report that shows B.C. has the highest rate of evictions in Canada and the majority of those aren’t the fault of the tenant. Photo by Jason Payne /PNG

“Evictions have long been viewed as a response to ‘bad tenants,’ ” says the report, Estimating No-Fault Evictions in Canada: Understanding B.C.’s Disproportionate Eviction Rate in the 2021 Canadian Housing Survey.

But more recently, attention has shifted to evictions being driven by the “financialization” of the housing stock, defined as “the increasing treatment of housing as an investment asset, rather than as a social good,” the report says.

“While these (no-fault evictions) can involve evictions for genuine personal use, they are often financially motivated, caused by the landlord’s belief that they can sell the property for a profit or increase the rent if they evict the tenant or renovate the unit,” says the new report, co-authored by researcher Silas Xuereb and Craig Jones, associate director of UBC’s Housing Research Collaborative.

“The average price of a home and average market rent are higher in British Columbia than any other province. Average housing prices are nearly $300,000 higher than the national average and monthly rents are $500 above the national average, providing increased incentives for landlords to evict tenants to raise rents or sell the property.”

Jones said his research team didn’t expect to uncover the fact that such a large majority of evictions in B.C. over the last five years would involve no fault by the tenant, but he cautioned that he can’t say how many may have been done in bad faith.

The data Jones used in the report comes from Statistics Canada’s Canadian Housing Survey, which for the first time in 2021 asked respondents for the reasons their landlords asked them to move. It’s the first tangible glimpse into the scope of the reasons behind evictions across the country; this data doesn’t exist at the provincial level because most governments, including in B.C., only track the evictions that tenants challenge, not the overall number that take place.

A new survey of 443 evicted tenants by Vancouver-based non-profit First United, published Saturday in The Vancouver Sun, found only one-third of those facing evictions filed complaints with B.C.’s Residential Tenancy Branch (RTB), the government agency responsible for dispute resolution services for landlords and tenants. First United’s Eviction Mapping project also found no-fault evictions were far more common than cases in which tenants hadn’t paid the rent, caused damage or were evicted for bad behaviour.

Jones’s report estimated that, based on the federal data, 253,000 to 331,000 renter households containing 531,000 to 770,000 renters were evicted between April 2016 and April 2021. A B.C. breakdown wasn’t provided, but this province would represent a significant portion of these numbers as it leads the nation in evictions.

B.C.’s estimated rate of 10.5 per cent of renters being evicted over a five-year period towers over the rates of other large provinces, such as Ontario (6.1 per cent), Quebec (4.8 per cent) and Alberta (3.1 per cent), the report found.

Linda de Gonzalez is one of the unlucky ones facing the loss of her longtime home.

The Surrey resident received a letter last month from the landlord of her building, Winsome Place, where she has rented her modest, two-bedroom apartment for two decades. The 70-year-old pensioner was asked to agree to start paying $1,450 on June 1, a jump of 43 per cent from her current monthly rate of $1,014.

Linda de Gonzalez and Rodney Hill received letters from their landlord threatening to sell the strata units they rent unless they agree to a rent increase, one that they and many others in their building can’t afford. Photo by Jason Payne /PNG

“It really was utterly and completely devastating. I literally felt my stomach fall out,” said de Gonzalez, who worries she would never find a replacement apartment within her budget for her and her pet birds. “I just sat on the floor and I cried and I cried and I cried. And I kept thinking what am I going to do? I have nowhere to go.”

The landlord’s letter stated that operating costs, such as property taxes, utilities and repairs, had increased beyond the two-per-cent annual rent hikes allowed by the provincial government. If de Gonzalez refused to sign the rate-hike agreement by May 10, her suite could be sold.

Her Newton-area building, home to a mix of seniors and young immigrant families, had always operated like an apartment building. But unbeknownst to de Gonzalez and her neighbours it’s actually strata-titled, meaning each of the 72 suites could be sold separately.

When May 10 arrived, de Gonzalez decided not to sign, saying she had have no money left for groceries after paying her other expenses.

“I decided that if they’re gonna kick me out, then I’ll end up living in my car with my birds in the back seat,” said the retired accounting clerk.

But she isn’t giving up without a fight: She’s reached out to her MLA, the housing minister, the Surrey mayor and a city councillor. She hopes public pressure will lead to a solution for the tenants in the 30 units in the building who received similar notices.
Zuzana Modrovic is a lawyer with the Tenant Resource & Advisory Centre. jpg

Although provincial law restricts annual rent increases to two per cent, landlords are permitted to raise rents higher than that if they get permission from the RTB or if they get their tenants to agree. Therefore what de Gonzalez’s landlord is trying to do is legal, said Zuzana Modrovic of the non-profit Tenant Resource and Advisory Centre (TRAC), which has been helping the Winsome Place tenants.

It’s a difficult situation for tenants, Modrovic said, because even if they agree to pay more rent, there is nothing stopping landlords from raising it again or selling the units.

The prevalence of evictions in B.C. isn’t only about “bad actor” landlords, said housing lawyer Priyan Samarakoone, although he has seen unscrupulous property owners in his work helping tenants through disputes. The problem, he said, is more fundamentally about the rental supply here being so heavily reliant on privately owned housing, whether it’s apartment buildings, basements suites or investor-owned condos.

“B.C.’s housing is based so much on (private) landlords providing a sporadic mosaic of different types of tenancies, and there’s a bunch of inconsistencies on how different landlords apply the rules,” said Samarakoone, who is also chair of the Green Party of Vancouver.

“We’ve moved so far from government-provided housing, and we’ve gone so much into this system of private landlords, and we’re not providing the adequate safety net.

“The RTB, they’re overworked, they’re underpaid, and they’re underqualified to do some of that work.”

Even when landlords follow all the rules, it’s not realistic to expect the private sector to provide affordable housing if it means they’re losing money due to external pressures such as variable interest rates.

“Those pressures will compel them to make decisions, and some decisions are not in bad faith, they’re just doing it so they’re not going in to the red,” Samarakoone said. “If it’s private owners, how can we expect there to be affordable housing? Everybody’s trying to make a profit.”

Priyan Samarakoone outside B.C. Supreme Court in Vancouver in 2017. Photo by Arlen Redekop /PNG

Jones’s report confirmed evictions were more common with private landlords, and far less common in co-ops and non-market housing. B.C. needs more purpose-built rental housing — something that governments have embraced in recent years, but there is a lot of catching up to do after decades of inaction, Jones said.

He’s not just speaking as a researcher, but as a renter in Vancouver. Roughly a decade ago, he was evicted twice over a four-year span and thought he would need to leave the city to find stable housing, but then he and his wife moved into a co-op where they have been ever since.

“I really feel like we have a home here with some real security of tenure,” Jones said.

But it takes time to construct new buildings, and there are changes that could be made at the RTB in the short-term to help tenants during this housing crisis, said First United lawyer Sarah Marsden.

This includes requiring landlords to apply to end tenancies, similar to the law in Ontario, which would make the RTB aware of all formal eviction attempts; more flexibility with the rule allowing eviction if the rent is more than five days late, especially if the amount owing is small; and if a tenant loses a dispute before the RTB, extending the time they must vacate the unit beyond two days, because this short period deters many from pursuing disputes, said Marsden.

One positive change made by government was creating new rules in 2021 to reduce renovictions, which until then had been a very common scenario in B.C. The new legislation seems to have dramatically reduced the incidence of renovictions, advocates say. But, they say, since then, there has been a surge in “landlord’s use” evictions, which allows tenancies to be ended with two months’ notice if the landlord or a close family member wants to move into the unit.

“Landlord’s use” was identified as a “concerning trend” in Jones’s report, and both Marsden and Modrovic said it could be clipped if government took the same action as it did with renovictions: requiring the landlord to file paperwork to prove which relative is moving in and why they need to live there.

In an email to Postmedia News, the Housing Ministry said: “Staff are currently exploring options on how to cut down on unlawful evictions, including evictions for landlord’s use,” but didn’t elaborate. It said the RTB is doubling the size of its Compliance and Enforcement Unit, and is “refreshing” its website to ensure tenants and landlords can find the information they need.

David Hutniak of the industry group Landlord B.C. rejects the idea that renovictions have been replaced by landlords ending tenancies for personal use, arguing it’s an apples-to-oranges comparison.

Renovictions “were occurring in purpose-built rental” buildings, he argued, while ending tenancies for personal use mainly takes place in the secondary market, when owners want to reclaim their basement suites or condos.

“I totally disagree with that. They’re not related at all,” Hutniak said. “There’s no connection there because the secondary market never did renovictions.”

He added landlords caught lying about ending tenancies for personal use face “harsh” new penalties of reimbursing displaced tenants with up to 12 months’ rent.

That may be true, Modrovic said, but if the landlord can hike the rent high enough for a new tenant, then it wouldn’t take long to make up for that financial penalty.

It remains “incredibly difficult” for people to find rental housing they can afford in the current rental market, Modrovic said.

However, they added, “If there’s light at the end of the tunnel, it does seem that the government is at least somewhat receptive to what advocates say the problems are. And we are hopeful that we will see some change to what we see as the biggest problems.”

 

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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