B.C. Landlords Can Raise the Rent 4% in 2018
With low vacancy rates throughout British Columbia it’s important to encourage more people to become landlords.
When more good people are motivated to invest their hard earned savings into creating secondary suites in their homes or buying an investment condo it helps tenants. More landlords means more supply of high quality rental housing and gives tenants more options in finding a nice place to live.
Landlords Are Running a Business and Need To Keep Up With Increasing Costs
One of the biggest challenges we hear from small residential landlords across B.C. is that their cost keep increasing each year. The reality is it’s becoming more expensive to create safe and well maintained rental units that service-oriented landlords provide.
Successful Landlords Know the Importance of Maintaining Their Rental Property
Keep your property up can be expensive. Some repairs are urgent and obvious. The furnace might break. A toilet might need to be replaced. A fence might need to be repaired. A tree might need cutting down.
Other improvements might be upgrades to keep your current tenants happy or to make the property attractive to new prospective renters. This could mean new paint, new stairs, and lots of other expenses.
This is why BC landlords know it’s important to raise the rent each year. Especially as lots of new restrictive rule changes coming for landlords in BC.
How Much Can British Columbia Landlords Raise The Rent In 2018?
Annual rent increases are an important part of running a successful rental business. In 2018 small residential landlords can raise the rent by a maximum of 4%
Why only 4%? My Costs Are Much Higher Than That!
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% |
Are Tenants Aware of The Challenges Small Landlords Face?
The good news is that most tenants are aware of the challenges small landlords face in running our rental businesses. The price of gas goes up, the price of utilities, the price of groceries.
Rent isn’t something special…it also need to go up to cover costs. Small landlords are not immune to rising costs.
Of course there are people out there who think all landlords are billion dollar corporations with unlimited funds.
The reality is the typical BC landlord is someone who has a regular job and is hoping to make a good investment or create a secondary suite to help them cover their mortgage.
The CBC reports some tenants believe the rent increase is gouging tenants and there should be a “rent freeze.”
How Does The 2018 Guideline Compare to Previous Years?
Last year it was 3.7%. In 2012 the increase was higher at 4.3%
How Does The BC Rent Increase Guideline Compare to Other Provinces?
Ontario landlords can only raise the rent by 1.8% in 2018. So compared to them we are doing okay.
However, Alberta landlords don’t have rent control and can raise the rent as much as the market can bear (as long as they provide property notice, etc.)
BC Landlords Are You Going To Raise the Rent in 2018?
Experienced and successful landlords across British Columbia know that it’s important for landlords to raise the rent according to the guideline each year.
Good tenants demand attractive and well-maintained properties and you need to be charging rents that allow you to offer what good tenants want. In order to keep your property great for tenants and also make sure you are running a profitable business it’s important to raise the rent in 2018.
