Vancouver’s illegal rental houses reminiscent of Hong Kong’s coffin apartments

A Vancouver city councillor and former tenant advocate, Stephanie Smith, has expressed concern over the discovery of illegal rental houses in the city. The illegal operation involves subdividing a single-family home into multiple rooms, housing several tenants without proper permits or adherence to health and safety standards. Smith is not surprised by this occurrence, as she has witnessed similar practices during her tenure representing tenants in previous roles.

In July 2025, an inspection of a home near Commercial Drive uncovered 21 rooms, with at least 17 tenants residing within the premises. Multiple bathrooms and plumbing fixtures had been hastily installed without the necessary permits. Following this discovery, the City of Vancouver ordered the occupants to vacate the premises.

The Residential Tenancy Branch found the landlords guilty of not maintaining the rental property in compliance with health, safety, and housing standards, as well as failing to address urgent repairs promptly. The landlords were fined $90,000 in total – $85,000 for the first violation and $5,000 for the second. This fine represents approximately eight months of revenue for the property, now listed for sale at $1.4 million.

Smith believes that the penalties imposed by the Residential Tenancy Branch’s Compliance and Enforcement Unit are not proportionate to the harm caused to tenants. She argues that landlords engaging in such practices, especially those with multiple properties, could view such fines as a "cost of doing business."

Andy Yan, director of Simon Fraser University’s city program, likens the situation to Hong Kong’s infamous "coffin apartments." These were essentially wooden boxes with a single bed, which were common in the 1800s when newcomers to Canada were crammed into these tiny spaces. Yan believes that Vancouver, in its past, has experienced a similar scenario, highlighting the need for local governments to prevent landlords from engaging in these practices and to ensure that fines are an appropriate consequence for their violation of bylaws and the Residential Tenancy Act.