Yukon government rolls out subsidy for landlords squeezed by government rent cap

The Yukon government is rolling out a subsidy program aimed at encouraging landlords to stay in the business of being landlords.

Owners of eligible units can apply for a one-time payment of $338. Anyone who earned rental income this year will be eligible, but itwill not apply to government-owned housing or to most vacation rentals.

Speaking on background at a briefing Thursday, officials with the economic development department said the idea is to make up the difference between the government's cap on rental increase of five per cent and the inflation rate of 6.8 per cent.

"It's a rebate, basically," said one official.

The government wantsto help landlords who might be tempted to take their rental units off the market in response to rising costs and interest rates, and limited rent increases.

Officials estimate around 3,000 units will be eligible under the plan. There is no limit on the number of eligible unitsfor which an owner can claim the subsidy.

Department staff say they don't know how many landlords have taken properties off the market in response to higher prices. And they sayit could be years until a census captures the data needed to know if the program worked.

The total budget is a little more than $1 million.