Control rent increases on commercial properties

Currently in Vancouver, residential tenants are limited to rent increases of up to 2% per year. However, this limit does not apply to commercial rentals, whose tenants can suddenly be asked to pay significantly more rent than they have been - in some cases double or more. This has created a heavy burden and considerable uncertainty for small businesses that rent commercial space, to the point of sometimes driving them out of business entirely. Furthermore, there is a tendency for rents to increase at a rate equal or greater to the increase in profitability of the renting businesses, causing those profits to flow directly to the landlord instead of to hard-working business owners and entrepreneurs. This in turn requires businesses to raise prices while often cutting back on quality and suppressing employee wages and benefits. The result is a much less liveable city and one where entrepreneurship discouraged.

Solution: Why not apply the same rental increase limits to commercial properties that apply to residential properties? 

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commented 2014-04-21 20:20:03 -0700 · Flag
I think this is a promising idea. Often the businesses are the ones who increase the desirability of a neighbourhood, but they suffer from the success they contributed to!
tagged this with Economy 2014-04-21 09:13:10 -0700
tagged this with Affordability 2014-04-21 09:13:10 -0700
published this page in Policy ideas 2014-04-20 13:01:07 -0700