2025 Rental Increase
A Landlord’s Guide to Rental Increase Percentages in British Columbia
As a landlord in British Columbia (BC), staying informed about rental regulations is crucial to maintaining positive relationships with your tenants and ensuring your investment continues to perform. One of the key areas landlords need to navigate is the allowable rent increase percentage for 2025.
What is the Annual Allowable Rent Increase?
Each year, the BC Residential Tenancy Branch (RTB) sets a maximum percentage by which landlords can increase rent. This rate is tied to inflation and ensures fair adjustments for both landlords and tenants.
For instance:
2024: The allowable rent increase was set at 3.5%.
2023: The allowable rent increase was capped at 3%.
It’s important to note that landlords are not permitted to exceed this percentage unless they apply for and are granted an exception.
Key Rules for Implementing Rent Increases
To ensure compliance with the Residential Tenancy Act (RTA), landlords must follow these steps when increasing rent:
Provide Proper Notice:
Tenants must receive three full months’ written notice before the rent increase takes effect.
Use the official RTB-approved forms to avoid disputes.
Respect Timing Restrictions:
Rent increases are only permitted once every 12 months per tenancy agreement.
For new tenants, you can set the starting rent at market rates, but increases must adhere to the annual cap thereafter.
Know Your Exceptions:
If you’ve experienced significant cost increases (e.g., utility hikes or major repairs), you can apply to the RTB for an additional rent increase. Supporting documentation, such as receipts or invoices, is required for this application.
Benefits of Following the Guidelines
Adhering to the rent increase rules isn’t just about avoiding penalties—it’s about maintaining trust with your tenants. Properly managing rent increases can:
Strengthen tenant relationships.
Reduce turnover and vacancy rates.
Protect your reputation as a fair and reliable landlord.