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Annual rent increase set at three per cent
The Province of British Columbia is tying the annual allowable rent increase in 2025 to inflation at three per cent, down from this year’s allowable increase of 3.5%.
The maximum annual allowable rent increase for 2025 cannot take effect prior to Jan. 1, 2025. Government policy prior to 2018 allowed for an additional two per cent rent increase on top of inflation, costing the average B.C. family hundreds of dollars in additional rent.
“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus two per cent,” 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.”
Since 2017, the province has taken steps to better protect renters, including banning illegal renovictions, strengthening the financial penalties for landlords who evict tenants in bad faith, protecting growing families by restricting rent increases if a tenant adds a child under 19 to their household, and improving wait times at the Residential Tenancy Branch by 64% since November 2022.
In addition, the province has implemented the annual renter’s tax credit, which provides $400 a year to low- and moderate-income renters across B.C., and is the first Canadian jurisdiction to support the creation of provincewide rent bank services to provide interest-free loans for tenants in urgent circumstances.
Next year’s change follows multiple years of the province capping the annual allowable increase well below inflation in 2023 and 2024, as well as a rent increase freeze in 2020 and 2021 to support renters during the COVID-19 pandemic. It represents a return to the standard formula of tying allowable rent increases in B.C. to the Consumer Price Index, as inflation begins to return to more normal levels, the Ministry of Housing noted in a media release.
The Residential Tenancy Branch also recently updated information related to the outright banning of air-conditioning (AC) units and passive cooling materials without a rational basis. This updated information provides examples of specific cooling measures, such as umbrellas, awnings, and reflective window coverings, and is intended to make the rules clearer for landlords and tenants.
The Province encourages tenants with questions about adding AC units or passive cooling materials to their homes to speak with their landlord. If a resolution can’t be reached, a Residential Tenancy Branch information officer at 1-800-665-8779 can outline options.
The rent increase does not apply to commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities.
If landlords choose to increase rent, they must abide by the Residential Tenancy Act and provide a full three monthsā notice to tenants using the correct Notice of Rent Increase form. Rents cannot be increased more than once in a 12-month period.
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