BRITISH COLUMBIA – The Province of B.C. is tying the annual allowable rent increase in 2025 to inflation at 3%, 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 2% rent increase on top of inflation.
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.
According to Ravi Kahlon, Minister of Housing, “Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus 2%. 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.”
In summary:
- The maximum allowable rent increase is defined by the 12-month average percent change in the all-items Consumer Price Index for B.C. ending in July of the year prior to the calendar year when the rent increase takes effect.
- The 2025 maximum increase for manufactured-home park tenancies will also be 3%, plus a proportional amount for the change in local government levies and regulated utility fees.
- 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 months notice to tenants using the correct Notice of Rent Increase form. Rents cannot be increased more than once in a 12-month period.
Business Examiner Staff
