Landlords in B.C. will only be able to raise rents by a maximum of three per cent in 2025.
That’s down from 3.5 per cent seen this year.
The provincial government says the allowable increase is tied to inflation and, in doing so, follows the recommendations from the recent Rental Housing Task Force.
“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus 2%,” 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.”
The province explains that the allowable rental increase cannot take effect prior to Jan. 1, 2025.
The maximum allowable rent increase is defined by the province using the 12-month average per cent change in the Consumer Price Index for B.C. ending in July of the year prior to the calendar year.
This allowable rent increase, however, does not apply to commercial leases, non-profit housing tenancies where rent is geared to income, co-operative housing, and some assisted-living facilities.
Landlords must provide a full three months notice to tenants of any rental increase using the Notice of Rent Increase form, and may only increase rents once in any 12 month period.