British Columbia Announces 2018 Allowable Rent Increase, May Limit Future Increases

by | Sep 11, 2017 | Rental Property Management Tips

British Columbia’s annual allowable rent increase for 2018 has been set at 4.0%.

That is the maximum amount a landlord can increase rent for many residential properties. The 2018 figure is up slightly from 3.7% in 2017.

According to the British Columbia Residential Tenancies Office, rent increases generally are allowed once per year. Landlords must provide notice to tenants at least three full months in advance of any rent increase. The landlord only can increase rent 12 months after the date that the existing rent was established with the tenant,  or 12 months after the date of the last legal rent increase for the tenant. The Residential Tenancies Office can provide necessary forms and additional information concerning rent increases.

 The British Columbia RTO provides an online rent increase calculator. It is important for landlords to be exact, and not to round up to the nearest dollar if that would bring the rent increase over the 4.0% allowed. Tenants are not required to pay an amount greater than that allowed by law, and a tenant may deduct any overpayment from future rent.

The maximum allowable rent increase in B.C. is calculated by adding 2.0% to inflation. However, B.C.’s new housing minister has announced that she plans to review that calculation and determine whether to recommend lower rent increases in the future.

According to a news report, tenant advocates are pushing for a rent increase based on inflation alone. So, for example, the 2018 rent increase maximum would be 2.0% rather than 4.0%.

B.C. typically allows higher rent increases than Ontario, which has limited all future increases to not more than 2.5%.

There are separate rules for manufactured housing. Generally, manufactured home park tenancy rent increases in British Columbia for 2018 are capped at 4.0% plus a proportional amount based on certain expenses.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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