January 1st, 2013
It’s the New Year and Landlords Can Raise the Rent 3.8% in 2013
British Columbia has rent control. This means the government dictates how much you can raise the rent every year for current tenants.
A BC landlord can raise the rent 3.8% in 2013.
(In 2012, the allowable rent increase was 4.3%)
Many landlords have emailed in asking how the government comes up with this number. It is the inflation rate, with an additional 2% added on.
How Does This Compare With Other Provinces?
In Manitoba the allowable rent increase is only 1%
So how do you calculate the 3.8% rent increase?
Here is an example:
If your tenants currently paid rent of $500/month, you can increase their rent by $21.50 in 2013.
This means the tenants will have to pay $521.50/month.
What if you want to charge your tenants more?
To do this you will have to either get your tenants to agree with it (and have this written down) or serve your tenants with a dispute resolution officer’s order which approves of the higher rent increase.
How can a landlord inform their tenants about the new rent price?
According to the law in British Columbia, the landlord must serve the tenants notice of the rent increase at least 3 months before the new rent price is charged.
Make sure you give at least 3 months notice or the tenants can legally refuse to pay the rent increase.
Should a landlord give their tenants a rent increase?
Yes. Use the rent increase to improve your property. Good tenants will understand. Remember, the key is finding Good Tenants!
BC Landlords You Can Raise the Rent by 3.8% in 2013. Use This Opportunity To Generate More Cash-flow and Use This Extra Money To Improve Your Rental Property Making It Better Than Ever
Tags: Rental property