The allowable residential tenancy rent increase for British Columbia for 2013 is 3.8 per cent.
By comparison, rent increases for 2012 were capped at 4.3.
The annual allowable rent increase for conventional residential tenancies is determined by the formula set out in the Residential Tenancy Regulation, which is calculated by adding two percentage points over the annual rate of inflation.
The cap represents the largest amount a landlord can raise rent before the tenant has the right to dispute the increase.
If a landlord charges an amount higher than the rent increase figure, the tenant does not have to pay the excess rent, unless the tenant has been served with a Residential Tenancy Branch order allowing the rent increase.
Landlords planning to increase the rent must provide three months notice to tenants using the form approved by the RTB.
A residential tenancy landlord may apply to the Residential Tenancy Branch for a larger increase if:
The landlord has completed significant repairs or renovations that could not reasonably have been foreseen and are not recurring within a reasonable time period, incurred a financial loss from an extraordinary increase in operating expenses, or incurred a financial loss from an increase in financing costs that could not have been reasonably foreseen; or,
If the rent for a rental unit is significantly lower than that of similar units in the area.
Forms are available at Branch offices, or the RTB’s website.
For a manufactured home park tenancy rent increase that takes effect in 2013, the allowable increase is 3.8 per cent plus a proportional amount. For a definition of the proportional amount and for more information please see the Rent Increase Formula for Manufactured Home Parks fact sheet at the Residential Tenancy Branch’s website.
A manufactured home park tenancy landlord may apply to the Residential Tenancy Branch for a larger increase, using the Application for Additional Rent Increase form, if the landlord has completed significant repairs or renovations that are reasonable and necessary and will not recur with a reasonable time period, incurred a financial loss from an extraordinary increase in operating expenses, or incurred a financial loss from an increase in financing costs that could not have been reasonably foreseen.
A manufactured home park tenancy landlord may also seek an additional rent increase if the rent for a manufactured home site is significantly lower than that of similar sites in the area.
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Disclaimer: The information provided in this post in 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.