In a win for B.C. seniors, the B.C. government has said the province’s retirement homes are not permitted to arbitrarily increase the mandatory service fees they charge residents. Rather, service fees — which cover things like meals and housekeeping — are subject to the same caps on annual fee increases as rent.
“I think this is a good win for the consumer, if you will, for seniors, and also an opportunity for the industry — for retirement homes — to recalibrate what it means to operate retirement homes and how they relate to tenants,” said Dan Levitt, the BC Seniors’ Advocate.
“I think this is going to be an improvement overall for the retirement home sector and for seniors in British Columbia,” said Levitt, who oversees the Office of the Seniors Advocate, an independent office of the provincial government that monitors and reports on systemic issues affecting seniors.
On July 4, that office released a report detailing concerns that some retirement homes were raising mandatory service fees beyond the amount allowed by law. These fees often form part of the rental agreement for living at a retirement home.
“Seniors renting apartments in retirement homes are currently subject to the practice of landlords increasing their mandatory service fees by whatever amount they choose,” the report says.
“Raising fees that must be paid as a condition of tenancy is the same as raising the rent.”
According to a news release from the advocate’s office, the government wrote to the office shortly after the report’s release, saying it plans to follow the report’s recommendations.
The government’s position will resolve confusion among retirement home operators and residents about whether the Residential Tenancy Act, which governs how much rent and fees can increase each year, applies to retirement homes. Retirement homes, which are also sometimes called independent living homes, are different from assisted living facilities where residents require medical care.
About 30,000 seniors in B.C. live in retirement homes, the report says.
‘A huge concern’
The report recommends the government immediately ensure the province’s Residential Tenancy Board, which settles disputes under the Residential Tenancy Act, recognizes that the tenancy act applies to retirement homes.
In statements to Canadian Affairs, the province’s Ministry of Health and Ministry of Housing confirmed that the Residential Tenancies Act applies to retirement homes. But the law does not apply to assisted living facilities, which are under the authority of the Ministry of Health.
The Ministry of Housing acknowledged the confusion about which facilities must comply with the Residential Tenancies Act.
“The province will work to ensure that independent living residents and providers are aware of their rights and responsibilities while acknowledging the unique circumstances that exist in these facilities,” a Ministry of Housing spokesperson said in an emailed statement.
The Residential Tenancies Board will be offering education during the summer to arbitrators about which rules apply to which facilities, and plans to offer public education for operators later this year.
Rent increases are “a huge concern, but this isn’t really new,” said Kathleen Jamieson, chair of the human rights working group for the Council of Senior Citizens’ Organization of BC, an advocacy organization.
Seniors live in a variety of facilities, and it is unclear which laws apply, she says. “There’s a need for a complete review of the whole system in B.C.”
Tenancy legislation permits landlords to increase rent every year. In 2024, the maximum allowable rent increase in B.C. is 3.5 per cent.
Some retirement home residents were facing fee increases far beyond that, says Levitt. Sometimes these increases were announced suddenly, leaving seniors scrambling to find alternative places to live.
Some had spent their retirement savings on living in retirement homes; many were unable to move in with family. Many seniors may not know these increases are illegal or cannot afford lawyers to represent them at the Residential Tenancy Board, Levitt says.
“It’s very difficult to go to your landlord and say, ‘We can’t afford this’ without the fear of being evicted,” he said. “We call it economic eviction.”
Calls to the seniors’ advocate about this issue more than doubled between 2022 and 2023, from about 20 to 50, Levitt said. If one resident called with a concern about fee increases, it was likely that others in the building were facing the same problem, he says.
The retirement home industry has questioned some of the report’s conclusions.
The BC Care Providers Association, which represents seniors’ care providers, said in a public statement that the report lacks data. It also says there has not been an increase in complaints to the Residential Tenancy Board about rent increases at retirement homes.
“This discrepancy raises questions about the accuracy of the report’s portrayal of the issue’s magnitude,” the statement says.
Retirement home operators are struggling with inflation and rising costs of food, labour and supplies, the statement says. “While we strongly support protecting seniors, balance is required to ensure that seniors retirement communities can remain in operation.”
Levitt says operators can apply for an exemption to raise rents beyond what the law allows if they face extraordinary circumstances.
“There are some options within the current system to make rent adjustments accordingly,” he said.
