2023 Rent Increase Landlord Guide: British Columbia
Attention, landlords of British Columbia!
It's crucial for all landlords to be aware of the new rent increase limits set by the government. Staying informed will not only help you comply with the law but also maintain a positive and transparent relationship with your tenants.
So, let's delve into the essential details regarding rent increases and how to navigate them in compliance with the regulations.
1. Residential Tenancies Limit:
The rent increase limit for 2023 in British Columbia is set at 2% for residential tenancies. This means that landlords can raise the rent by up to 2% for existing tenants.
2. Manufactured Home Parks Limit:
For manufactured home parks, the rent increase limit for 2023 is also 2%, along with a proportional amount for changes in local government levies and regulated utility fees. Make sure to consider these additional factors when calculating the rent increase for your tenants in manufactured home parks.
3. Timing of Rent Increases:
Landlords are allowed to increase the rent only once in a 12-month period. Furthermore, rent increases can only take effect 12 months after the date when the current rent was set for existing tenants or when the rent was last legally increased. This rule also applies in cases where there is a new landlord or a new tenant by way of assignment.
4. No Retroactive Rent Increases:
It's essential to note that landlords cannot apply rent increases for previous years, even if they didn't implement the full allowable amount in the previous year's increase. For instance, if the 2022 rent increase limit was 1.5%, and the landlord increased the rent by only 1% at that time, they cannot apply the remaining 0.5% in 2023. The full rent increase from the previous year should have been applied then.
5. Calculating Rent Increases:
When calculating rent increases, landlords must adhere to the rent increase limit for the current year and cannot round up the allowable rent increase. For instance, if the existing rent is $1,115 and the current year's increase limit is 2%, the maximum rent raise should be $22.30. Thus, the new rent can be up to $1,137.30, but not $1,138.
6. Rent Increase Calculator:
To simplify the process of determining when and by how much rent can be increased, consider using the Rent Increase Calculator provided on Rentboard.ca. This tool will help you stay within the legal limits and maintain a fair approach with your tenants.
7. Providing Adequate Notice:
Landlords are required to give tenants three full rental months' notice before implementing a rent increase. For example, if you inform your tenant of a rent increase on January 15, the three full rental months of notice would be February, March, and April. The new rent amount should be payable starting from May 1.
8. Notice of Rent Increase Form:
Ensure that you use the official Notice of Rent Increase form to notify your tenants about the upcoming rent increase. Complete both pages of the form, including both boxes on the second page. Additionally, remember not to round up the calculated rent increase amount.
- Residential rental units–notice of rent increase (PDF, 636KB)
- Manufactured home sites–notice of rent increase (PDF, 209KB)
9. Fixed Term Tenancies:
In the case of fixed term tenancy agreements ending, where the tenant continues to reside in the unit, landlords can only increase the rent once every 12 months. The increase must adhere to the maximum allowable amount. Moreover, landlords cannot apply for an extra rent increase if the rent is already lower than other units in the area.
10. Subsidized Housing:
The Residential Tenancy Branch does not set rent increases for subsidized housing. If you have tenants living in subsidized housing, they should consult their housing provider for any questions about rent increases.
11. Unlawful Rent Increases:
Remember, tenants are not obligated to pay rent increases that exceed the legal amount. If you attempt to apply an unlawful rent increase, tenants have the right to provide documents showing the allowable amount or apply for dispute resolution to ensure you comply with the law.
12. Deducting Overpayments:
If a tenant has paid a rent increase higher than the legal amount, they have the right to deduct the overpayment from future rent. They should communicate this in writing, explaining the reason for not paying the excess amount.
Past rent increase limits
|Year||Rent Increase Limit|
As responsible landlords, it's crucial to familiarize yourselves with these rent increase regulations to maintain a fair and harmonious rental relationship. By following these guidelines and being mindful of the laws, you'll create a positive living experience for your tenants while ensuring compliance with the 2023 rent increase limits in British Columbia.
Contact the Residential Tenancy Branch if you have questions about a tenancy.
Email to [email protected] or call: 1-800-665-8779 Monday to Friday, 9 am to 4 pm
Learn more about RTB services, office locations, and hours