October 13, 2013
B.C. Landlords Can Raise the Rent 2.2% in 2014
More and more B.C. homeowners are creating secondary suites in their homes and becoming landlords.
There are lots of things new landlords need to learn to become successful. One of these is making sure you keep your rental property maintained.
Maintaining Your Rental Property Is Important
Keep your property up can be costly. Some repairs are urgent and obvious. A water pipe might break. A toilet might need to be replaced.
Others might be upgrades to keep your current tenants happy or to make the property attractive to new prospective renters.
How Much Can I Raise The Rent In 2014?
Rent increases are an important part of being a landlord. In 2013 B.C. landlords are allowed to raise the rent 3.8 percent.
In 2014 B.C. landlords can raise the rent by only 2.2 percent.
Why only 2.2%?
In British Columbia the allowable rent increase is based on inflation plus 2 percent.
According to the BC Residential Tenancy Act website:
Annual rent increase
22 (1) In this section, “inflation rate” means the 12 month average percent change in the all-items Consumer Price Index for British Columbia ending in the July that is most recently available for the calendar year for which a rent increase takes effect.
(2) For the purposes of section 43 (1) (a) of the Act [amount of rent increase], a landlord may impose a rent increase that is no greater than the percentage amount calculated as follows:
percentage amount = inflation rate + 2%
How Does The B.C. Rent Increase Compare to Other Provinces?
While the rate is low compared to past Rent Increase Guidelines, we are actually getting a pretty good deal in B.C. compared to some other provinces.
Many B.C. landlords aren’t aware that while our Rent Increase Guideline is inflation plus 2 percent most other provinces are only based on the inflation rate.
For example in Ontario landlords can only raise the rent 0.8% in 2014.
In Manitoba landlords can only raise the rent by 2.0% in 2014.