Tenants can rest a little easier for the coming year, as BC has announced the allowable rate for landlords to raise rent has been reduced.
Because the Province is tying the allowable rent increase to inflation, this year landlords can only raise rent on their tenants by 3%.
This is a slight decrease from last year’s 3.5%.
“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus 2%,” said Ravi Kahlon, Minister of Housing.
“At a time when we know renters are struggling, our rent cap protects renters against unfair rent hikes, while allowing landlords to meet rising costs so that rental homes can stay in B.C.’s housing market.”
This 3% maximum allowable rent increase will be effective as of January 1st, 2025. Until then, the allowable increase remains 3.5%.
Prior to 2018, government policy allowed for an additional 2% on top of the rate of inflation to be added to the annual rent increase.
According to the BC government, if landlords choose to increase rent, they must provide a full three months notice to tenants using the correct Notice of Rent Increase form, as per the Residential Tenancy Act.
Rents cannot be increased more than once in a 12-month period.
See also:
- July rent report says cost of two-bedroom units up by 10.3% in Victoria
- Locally-made online platform matches Victoria renters and landlords like a dating app
The Province says they have been actively working towards protecting renters since 2017, as the housing crisis has become increasingly dire for some British Columbians.
In addition to regulating the ‘rent cap’ to make it cheaper for tenants, the Province says they have also banned illegal renovictions, strengthened the financial penalties for landlords who evict tenants in bad faith, restricted rent increases if a tenant adds a child under 19-years-old to their household and improved wait times at the Residential Tenancy Branch (RTB) by 64% since November 2022.
Additionally, In the 2023 tax year, low to moderate-income renters received a $400 tax credit to help with affordability.
