Industry representatives are raising concerns about the extended eviction timeline in British Columbia, saying it could lead to difficulties for buyers trying to secure financing.
The province recently announced that the ban on evictions for non-payment of rent will be extended until the end of June, in an effort to support tenants during the ongoing COVID-19 pandemic.
However, this decision has sparked worries among industry professionals, who say it could create challenges for buyers looking to secure financing for properties with tenants who are not paying rent.
According to the British Columbia Real Estate Association (BCREA), lenders typically require a property to be vacant before approving a mortgage. With the extended eviction timeline, this could delay the process and potentially cause financing issues for buyers.
In a statement, BCREA CEO Darlene Hyde said, “The extended eviction timeline could create significant challenges for buyers trying to secure financing, as lenders may be hesitant to approve a mortgage on a property with a tenant who is not paying rent.”
Hyde also expressed concerns about the impact on the rental market, saying that the extended eviction ban could discourage landlords from renting out their properties, leading to a decrease in rental supply.
The Real Estate Board of Greater Vancouver (REBGV) also weighed in on the issue, stating that the extended eviction timeline could have unintended consequences for both landlords and tenants.
In a statement, REBGV president Taylor Biggar said, “While we understand the need to support tenants during this difficult time, the extended eviction timeline could have unintended consequences for both landlords and tenants.”
Biggar added that the REBGV is calling on the government to provide financial support for landlords who are facing financial difficulties due to non-paying tenants.
The extended eviction timeline has also raised concerns among landlords, who say they are struggling to cover mortgage payments without rental income.
In an interview with CTV News, landlord and property manager David Hutniak said, “It’s a very difficult situation for landlords who are struggling to make mortgage payments without rental income.”
Hutniak also expressed concerns about the impact on small landlords, who may not have the financial resources to cover mortgage payments without rental income.
The provincial government has not yet responded to the concerns raised by industry representatives. However, they have stated that they will continue to monitor the situation and make adjustments as needed.
In the meantime, industry professionals are urging the government to consider the potential consequences of the extended eviction timeline and provide support for both landlords and tenants during this challenging time.
