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Island small business owners want protection from exorbitant rent increases

Some businesses in Lake Cowichan have seen rent hikes as high as 300%
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Glenda Osborne-Burg, manager of the family-run Gerard’s Specialty Foods in Lake Cowichan, is concerned about rising commercial rent for many properties in the town. (Submitted photo)

A long-standing small business in Lake Cowichan has come out swinging against exorbitant rent increases that are threatening its financial future, as well as others in the community.

Glenda Osborne-Burg, manager of the family-run Gerard’s Specialty Foods that has operated in the town since 2012, has begun a letter-writing campaign to senior and local levels of government asking for some sort of government protection or regulations against massive rent increases.

She said Gerard’s Specialty Foods has recently had a 120 per cent rent hike from the owners of the building it operates from.

Osborne-Burg said the British Columbia Tenancy Act, which governs commercial leases in the province, doesn’t offer any protections against such rent increases for small businesses.

“We are told by government, from municipal to federal, that [small businesses] are invaluable to our respective communities and play a large part in the economic development of our areas,” she said.

“Yet, when it comes to regulations that can protect our very existence, much more effective legislation is needed, specifically rent or lease-increase protection.”

Osborne-Burg said she’s not against rent increases, and that she sees a 50 per cent increase as reasonable, but a 120 per cent increase all at once is a “heck of a jolt” for a small business like Gerard’s Specialty Foods, and she knows other businesses in the community that have had to deal with rent increases as high as 300 per cent.

“This should not be allowed," she said. "Why can’t there be controls in place to protect commercial tenants similar to those controls for housing?”

Osborne-Burg has written Diana Gibson, B.C. Minister of Jobs, Economic Development & Innovation, on the issue, as well as federal officials and Lake Cowichan’s council, and she said she intends to continue writing letters until she sees results.

“I’ll keep writing until we get some satisfaction,” she said. “Just waiting for something to happen is not an option for us. I’m a firm believer that the squeaky hinge will get the grease.”

John Baker, who owns the building Gerard’s Specialty Foods operates from, said that even with the steep rent increase, the tenant is paying about $1.20 per square foot for the commercial space, while the average in the town for commercial space is approximately $1.50 per square foot.

He said he has also had to contend with increasing costs, including hikes in Hydro rates, property taxes, maintenance of the building and other expenses.

"As well, the community has begun to thrive and there's not a lot of commercial space available right now," Baker said. "It's a matter of supply and demand."

Lake Cowichan Mayor Tim McGonigle addressed the issue at a recent council meeting after the town received a letter from Osborne-Burg.

He said the town has investigated high rent increases for commercial properties in Lake Cowichan, and a resolution looking for regulations to control the rent increases for commercial properties was made at a meeting of the Union of B.C. Municipalities.

“We’re waiting for an answer from the province on that resolution,” he said. “A lot of commercial properties are facing this, not only in our community but throughout the province, and they are finding it difficult to stay in business with these increases. We’ll keep [the issue] on the burner.”



Robert Barron

About the Author: Robert Barron

Since 2016, I've had had the pleasure of working with our dedicated staff and community in the Cowichan Valley.
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