B.C. limit rent increase at 3 percent starting next year, down 0.5 percent from 2024

The British Columbia government is capping the maximum allowable rent increase at three per cent next year, down from the 3.5 per cent hike allowed in 2024.

 

Housing Minister Ravi Kahlon says the province’s decision to tie the maximum rental increase to the rate of inflation will save renters hundreds of dollars while allowing landlords to recoup the rising costs of maintaining rental properties.

 

Prior to 2018, the maximum allowable rent increase in B.C. was capped at the rate of inflation plus two per cent. The new three per cent cap cannot take effect before Jan. 1, 2025

 

“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus two per cent,” Kahlon said in a statement Monday.

 

“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.”

Landlords who increase rent must give tenants three months of notice and rent cannot be raised more than once in 12 months.

 

The three per cent cap does not apply to commercial leases, housing co-operatives and some assisted-living facilities.

 

While residential landlords are bound by the rental increase cap, there are exceptions.

 

Landlords can plead their case for larger rent increases to cover the costs of building upgrades or rising interest rates under the B.C. Residential Tenancy Act.

 

In 2023, the B.C. government implemented a renter’s tax credit, providing up to $400 a year for low- and moderate-income rental households. The province imposed a rent freeze in March 2020 to support renters during the COVID-19 pandemic, cancelling pending increases until July 2021.

 

 

 

 

This article was first reported by CTV News