Property owners are beginning to take notice of the upcoming change requiring business licences for residential rentals.
As part of the core services review plan approved in July, city council voted to establish a new business licence fee for housing in a residential building with less than three units, including secondary suites and duplexes.
The final changes to the associated bylaws were passed Oct. 7, with the fee coming into effect Jan. 1, 2014 at $155 and increasing in accordance with other business licence fees - five per cent over three years - to $171 by 2016.
As part of tonight's council agenda, letters have been filed in opposition to the additional fees.
The Prince George Métis Housing Society was in "extreme shock over the extra cost this new proposed fee will cause to [their] dwindling operating budget for the provision of affordable housing here in Prince George," according to a letter signed by board chair Emma Palmantier.
The society operates 160 units on 99 properties throughout the city and said they pay $325,000 annually in property taxes and utilities.
The additional fee will add another $15,000 per year, they said, compounded with the end of a government subsidy for almost half of their properties.
"We are making every attempt to keep the rental units at an affordable level plus ensure the homes are maintained and managed at a level that meets the health and safety of the occupants, and fits within the quality of homes in the surrounding neighbourhood," wrote Palmantier, who asked council to reconsider the bylaw.
Making it more expensive for landlords to own property will drive increases to rent for tenants and make housing less affordable, wrote Matthew Bell, noting he had already sold one of this three rental properties in the city and was close to selling off a second.
"It's becoming very obvious that the city's cash grab policies never consider the consequences of their decisions," wrote Bell.
In the business case from staff in the core review implementation plan, other B.C. cities such as Vancouver, Kelowna, Vernon and Burnaby have comparable business licence fees for rental units ranging from $27.50 to $92.
"Requiring a business licence for these properties will provide the city with another tool to resolve issues associated with problem landlords who do not adequately manage their properties," said the plan. "These issues create a significant drain on other city resources."
Letters were mailed out to property owners who didn't claim the provincial homeowner's grant, which indicates to the city the property is likely used as a rental.
