Claire Flewelling-Wyatt discusses Victoria's rental market and what's in-store for the industry. Citified.ca
Q&A and insights on Victoria's rental industry with Claire Flewelling-Wyatt of Pemberton Holmes
Ten on the 10th
Published May 9, 2025
Citified's Ten on the 10th is a monthly question-and-answer segment connecting our readers with the insight and knowledge of Victoria's top real-estate and business professionals.
Ten on the Tenth's May, 2025 segment features Claire Flewelling-Wyatt, CEO, Managing Broker of Pemberton Holmes Ltd.'s Property Management Division.
Asking the questions is Ross Marshall, Senior Vice President of the Victoria offices of commercial real-estate brokerage CBRE. As a leader in facilitating large-scale commercial real-estate transactions throughout the Capital Region – which include apartment complexes, industrial retail and office properties, and land/development opportunities – Ross and his team are at the forefront of market-leading real-estate transactions on Vancouver Island.
Would you like to be featured as part of a future Ten on the 10th Q&A? We'd like to hear from you.
Please tell us about the history of Pemberton Holmes, and how you came to be a a part of this firm.
Pemberton Holmes Ltd. is one of the oldest continuously operating real estate companies in North America, with a legacy dating back to 1887.
Over the years, Pemberton Holmes has grown to encompass a broad range of services, including residential and commercial real estate sales, property management, and strata management. It remains a family-owned and operated business, now run by the fifth generation of the Pemberton Holmes family.
Today, Pemberton Holmes operates across Vancouver Island and the Gulf Islands, continuing its tradition of community involvement.
I have been with the company since 2005 and have worked in every aspect of property management. I began my career as a showing agent and earned my Property Management license in 2007, followed by my Real Estate License in 2009, and ultimately my Strata Property Management and Managing Broker license in 2015. My primary focus has been in residential property management, where I’ve witnessed significant changes over the years—not only within the industry but also in the evolution of tenancy laws and the Residential Tenancy Act. The housing sector is constantly evolving, and there is always something new to learn, adapt to, or improve upon.
To give our readers a deeper insight into the firm, what sets Pemberton Holmes apart from other players in Victoria's real-estate industry?
Our property managers live and work in the communities they serve, giving them hands-on knowledge and an authentic understanding of the local rental market. We work to provide clear, timely, and respectful communication with both owners and tenants, and strive to ensure everyone feels heard and valued.
We have a preventative approach to maintenance and ability to resolve issues before they become costly problems, and behind every property manager is a strong team. From accounting to administrative coordination, we provide full-service support to obtain consistency and reliability.
We don’t believe in one-size-fits-all. Whether you're an investor with a portfolio of properties or a homeowner renting out a single unit, we tailor our management approach to fit your goals.
We are small and nimble, and given that we do not have a parent company, we are able to make quick decisions on-the-go, which enables us to provide management to many different categories of properties.
We believe in constantly reinventing ourselves and have a strong focus on education and ‘out of the box’ education on communication, problem solving and overall values.
According to Citified's construction activity tracking, more than 7,500 units of purpose-built rental homes are currently under construction in Greater Victoria, and many thousands more are approved by south Island municipalities. Do you feel the region is building enough rental homes, perhaps too many, or still not enough to meet demand?
Victoria is making worthy progress in constructing purpose-built rental housing, current efforts still fall short of meeting the region's growing demand.
This surge in construction hasn't fully addressed the housing needs. Rental prices continue to rise, with average rents for one-bedroom apartments in Victoria reaching $1,875 in March 2025—a 5% increase from the previous year. Such trends indicate that demand is still outpacing supply.
Several factors contribute to this imbalance:
- The population is projected to increase by 20% reaching a total of 475,000 residents by 2038, adding pressure to the housing market, approximately 27% over two decades.
- Despite the need for more housing, Greater Victoria experienced a 16% drop in housing starts in 2024 compared to the previous year, partly due to increased development costs and regulatory hurdles.
- High construction costs and limited availability of affordable units mean that many new rentals are priced beyond the reach of average-income residents. We are seeing this every day as tenants struggle to meet the rising rental rates. This also has a direct effect contributing to continued movement in the market, additional wear and tear and an increase in arbitration hearings as tenants struggle to meet their tenancy obligations, such a lease terms and increases.
While the region is actively building more rental homes, the pace and affordability of these developments are not meeting current and possibly future demand effectively, which is having a direct impact on market rents. In my opinion, rental rates are not stabilised which leads to rental rates varying widely in the same area. This also contributes to tenants continued transient nature.
With a sizable number of government-backed, below-market rental units added to Victoria's housing supply in recent years, and many more projects underway or planned, do you believe subsidized rental inventory is having an impact on the private market's ability to supply market rental housing?
The significant increase in government-backed, below-market rental housing in Victoria in recent years—along with numerous additional projects underway or planned—is having a measurable impact on the private market’s ability to supply market rental housing.
While subsidized housing is essential to ensuring affordability for lower-income households and supporting vulnerable populations, its rapid expansion can create several unintended consequences for the private sector, such as expansion of deeply subsidized housing that can place downward pressure on private market rents, particularly for older units competing in similar price ranges, potentially undermining the financial viability of maintaining or developing new rental housing.
It can also distort market signals—long waitlists for subsidized units may not accurately reflect the broader spectrum of renter needs, leading private developers to misinterpret demand and hesitate to invest. Additionally, a heavy policy focus on subsidized housing may divert resources and attention away from supporting private sector participation, which is already strained by the regulatory burden of the Residential Tenancy Act. As tenants move into below-market units, increased turnover and elevated expectations for pricing and amenities further challenge the stability of the private rental sector.
A healthy housing system relies on a balanced approach which includes both subsidized and market-based solutions. While public investment in housing is vital, so too is the creation of conditions that support ongoing private sector involvement. Ensuring long-term rental supply in Victoria will require policies that address and support both sides of the market.
We often hear from landlords and from housing advocates that the residential tenancy resolution process favours one side, or the other. In your experience, is the resolution process fair? Are there any changes that you would like to see?
In our experience, while the residential tenancy resolution process strives to be fair and balanced, it can sometimes fall short—particularly when it comes to enforcement of monetary orders issued in favour of landlords.
We are rarely able to fully collect on these monetary orders, even after receiving a decision from the Residential Tenancy Branch. This creates a significant gap between obtaining a judgment and being made whole for the damages or losses incurred.
One change we would like to see is the ability to increase the allowable security deposit. This would provide a more practical and immediate form of protection for landlords, especially in cases where recovery through the formal process proves to be difficult or impossible. Increasing the security deposit limit could help mitigate financial losses and reduce the reliance on enforcement mechanisms that, in many cases, fail to deliver results.
Can you speak to provincial policies that positively or negatively impact your industry?
- Dispute resolution process
- Long delays and inconsistent decisions at the Residential Tenancy Branch (RTB) make it difficult to enforce tenancy agreements.
- Evictions, damage claims, or unpaid rent cases can drag on for months, causing financial harm to owners and stress for managers stuck in limbo.
- Rent increases
- Annual rent increases are capped below inflation (e.g., 3.5% in 2025), which doesn’t keep up with rising costs.
- Owners feel squeezed, especially in buildings with increasing strata fees, insurance hikes, and utility costs — making long-term maintenance and management more difficult.
- Tenancy Protections
- Strict protections around eviction for personal use, renovations, or sale complicate owner flexibility.
- More than ever, property managers are expected to operate with the precision of legal professionals. Transactional paperwork has become increasingly complex, and regulatory guidelines continue to tighten—further fueling the perception of a landlord-versus-tenant dynamic. Managers are required to navigate highly restrictive rules, such as the issuance of 4-month notices with mandatory compensation, and are frequently held accountable when property owners are unable to use their own homes as originally intended.
- Vacancy Tax & Speculation Tax Policies
- Creates confusion, especially for non-resident owners or those with occasional-use properties, and complicates owner relations.
- Creates confusion, especially for non-resident owners or those with occasional-use properties, and complicates owner relations.
- Licensing & Compliance Costs (RECBC / BCFSA)
- Ever-increasing oversight and compliance requirements for licensed property managers, however the courses being offered to meet our licensing requirements are often real estate focused. We need more practical education from individuals who have worked in the field.
- More time spent on documentation, less on service. Training mandates, audits, and shifting rules make operations more bureaucratic and expensive — especially for smaller brokerages.
- Lack of Support for Landlords/Managers in Crisis Situations
- Policies tend to favour tenants in cases involving mental health, addiction, or hoarding.
- Managers are left to deal with biohazards, fire risks, or aggressive behaviour with limited support, while eviction or intervention options are slow and heavily regulated.
- Managers are often put into risky situations with no support and on occasion need to hire outside sources to act as security.
So our readers are aware, are there any federal policies that impact your industry?
Given the residential tenancy act is administered at the provincial level, as far as I am aware, we are not directly impacted by and federal polices.
Are there any rental market trends or insights you feel the industry and the general public should know about?
Rising rents are going to continue, despite the supply coming online.
The median rent in Greater Victoria is $2,397, which is higher than the national average. To afford an average rent comfortably, assuming no more than 30% of gross income is allocated to rent, a tenant needs to earn an income of around $80,000.
Although there is a large increase in the number of rental units available due to new construction, these additions have yet to significantly alleviate high demand for rentals.
We are seeing residents leaving Victoria and relocating to other provinces in search of more affordable housing.
There are two primary streams of rentals, those being private units made available by small investors, and purpose-built rentals in rental buildings. Why are some tenants opting out of the single-unit or small-scale investor rental market in favour of purpose-built rentals?
Purpose-built rental buildings offer several advantages over traditional private-sector rental housing. Unlike privately owned strata units, these properties are professionally managed with no strata councils to navigate, or restrictions imposed by individual owners. Residents are typically considered occupants rather than tenants of individual landlords, which can lead to more consistent policies and fewer personal disputes.
One of the key advantages of renting in a purpose-built rental property is the security of tenure it offers. Unlike privately owned condos or secondary suites, where a sale can often lead to eviction or a change in use, purpose-built rentals are designed and operated solely as long-term rental housing. This gives tenants peace of mind, knowing that their home is not at risk of being sold out from under them. The stability this provides is especially important for families, seniors, and long-term renters who value continuity and predictability in their housing arrangements.
What about old stock of purpose-built rentals, versus new purpose-built rentals? Why may some tenants be drawn to older inventory, and how does this impact new supply?
Older purpose-built rental buildings remain an attractive option for many renters, offering larger suite sizes at more affordable rental rates compared to newer developments.
These buildings are often located in established, central neighbourhoods with better access to transit, parks, and essential services. While they may lack some of the modern amenities found in newer purpose-built rentals—such as in-suite laundry or secure bike storage—the trade-off in reduced rent can make them a smart and practical choice for budget-conscious renters seeking space, location, and long-term affordability.
What are we seeing at a grass roots level?
Rising rental prices in Victoria and the surrounding area are driving significant shifts in tenant behaviour. Many long-time residents are being priced out of the city and forced to seek more affordable housing options in outlying areas or even in other provinces.
At the same time, high rents are compelling individuals to co-rent units or move in with extended family or roommates to manage costs. This trend is particularly evident among newcomers to Canada, who often arrive in high-cost regions like B.C. but quickly find that rental affordability does not align with their initial expectations. As immigration continues to increase and rental supply struggles to keep pace, these affordability pressures are reshaping how—and where—people live.
Why are private landlords getting out of the industry?
Many private landlords are choosing to exit the rental market due to a combination of mounting challenges that make it increasingly difficult to compete and operate effectively.
The growing presence of large real estate investment trusts (REITs) and the rapid development of new purpose-built rental buildings have intensified competition, making it harder for individual landlords to attract and retain tenants. At the same time, the complex and often rigid framework of the Residential Tenancy Act presents significant hurdles—whether it’s navigating tenant disputes, recovering possession of a property, or listing a unit for sale.
For many, the day-to-day burden of compliance, coupled with limited control over their own asset, is simply not worth the risk. As a result, many private owners are opting to sell or pursue other uses for their properties, contributing to a shrinking pool of privately-owned rental housing and adding further strain to the overall housing supply.
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