BC announced the cap on rent increases next year on Monday (August 26), saying landlords will be allowed to raise rents by a maximum of three percent in 2025.
This figure is 0.5 percent below this year’s upper limit of 3.5 percent.
Housing Minister Ravi Kahlon said in a statement that the cap will both “protect tenants from unfair rent increases” and “enable landlords to cover rising costs so rental units can remain in British Columbia’s housing market.”
However, there are ways around this cap. Landlords who wish to increase their rent can apply to the Residential Tenancy Branch of British Columbia.
A May 2024 industry decision ruled in favor of two landlords who had requested a 27 percent increase in their tenants’ rent – 23.5 percent above the 3.5 percent cap – to cover the cost of an inflated mortgage.
Rob Patterson, a lawyer with the Tenant Resource and Advisory Centre of British Columbia, told The Canadian Press he has rarely seen landlords use this route, but he fears more will try to take advantage after the May ruling. He said the province should do away with the provision altogether.
The Housing Ministry responded by saying that the ruling was the first it had heard of since data collection began in 2021.
In British Columbia, rent increase caps have been tied to the average inflation rate since 2018. Previously, governments were allowed to increase rents by two percent in addition to inflation.
Landlords must notify tenants of a rent increase at least three months in advance. They can introduce the increase for 2025 from January 1st.
– With files from The Canadian Press
