BC landlords are allowed to raise rental rates once a year based on a formula set out in the Residential Tenancy Act, which is the inflation rate plus 2%. For 2019, the maximum allowable increase will be 4.5% — it’s the largest allowable rent increase since 2004. (The increase is based on a 2.5% average change in the Consumer Price Index for BC from July 2017 to July 2018.)
If you’re a landlord and you want to increase your rental rates, you must give your tenants three full months notice of the increase, using the correct “Notice of Rent Increase” form, which you can find on the BC Government website at: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/forms
The 2019 limit of 4.5% applies to landlords in all BC neighbourhoods, as the government eliminated the geographic rent increase clause last December. The clause allowed landlords to increase rent above the allowable limit when other units in the same geographic area rented for higher amounts.
With a tight rental market in Greater Vancouver and Victoria, landlords with residential rental properties may be tempted to take all of their profits out of their buildings, but I’ll repeat my advice (which I explain in an earlier blog ) that it’s a short-term gain.
Invest in your property and offer value to your tenants when the market is good and you have the money. The provincial government has committed to increase the supply of rental housing, and while it is coming slowly, it’s coming. In our experience, tenant retention is high in buildings that are safe and well-maintained, with competitive rents. We’ve found that it is less expensive in the long run to invest a budgeted sum yearly in building maintenance and in keeping the good tenants you have, rather than having to invest a large sum down the road to attract new tenants or make major repairs.
Looking for a specialist in residential rental management? Give us a call at 604 873 8591.