2025 Rent Increase Announced
2025’s standard rent increase has been set at 3%, directly tied to the inflation rate as of the end of July. This marks a shift from previous years when rent increase caps were manually set by the government without a direct correlation to inflation, often placing financial strain on landlords. For instance, in 2022, the government imposed a 2% cap on rent increases for 2023, despite significantly higher inflation rates. This followed a 1.5% cap in 2022 and even stricter limitations during the pandemic years of 2020 and 2021, which created considerable challenges for landlords trying to keep up with rising costs.
The 2025 rent increase reflects the successful advocacy efforts of LandlordBC in holding the government accountable to their promise to return to an inflation-based rent increase formula. We recognize the unprecedented challenges landlords have faced in recent years, from escalating operational costs to navigating a complex regulatory environment.
While a return to inflation-based rent increases is a positive move we urge government to re-instate the pre 2018 rent increase formula of 2 percent + inflation to better reflect the costs rental housing providers face. Further we recommend the immediate implementation of a significant reduction in property taxes for all rental housing providers, including both purpose-built rentals and the secondary market, to mitigate the impact of soaring operational costs.
Additionally, we call for the reallocation of the carbon tax on rental buildings to establish a fund accessible to our sector, supporting the decarbonization goals outlined in CleanBC. The reduction of Greenhouse Gas (GHG) emissions is one of this generation’s greatest challenges, and our sector is committed to being part of the solution. However, the costs associated with retrofitting BC’s aging rental stock—much of which comprises the most affordable housing—are astronomical, with no feasible way to recover these expenses through rent increases alone.
Currently, expenses such as roof, elevator, and mechanical system upgrades are mandated to be capitalized under CRA regulations rather than being expensed, creating financial strain on landlords. We believe that the tax treatment of capital expenses should mirror the treatment of current expenses, allowing for immediate write-offs and providing essential financial support for the ongoing investment in the sustainability, health, and safety of our aging rental stock.
LandlordBC remains steadfast in advocating for your interests, ensuring that future rent increase guidelines accurately reflect the economic realities of the rental housing market. Our focus continues to be on fostering a balanced rental landscape that is sustainable for existing housing providers and conducive to the construction of new rental stock.
Timing
The earliest a rent increase may be effective is 12 months after the last rent increase or the date the rent was established. Additionally, a notice must be served three full months before the effective date. In a tenancy where rent is due on the 1st, a Notice of Rent Increase served and received in September 2024 will be effective for January 1st, 2025.
Landlords must always consider the method of service they plan on utilizing to serve their tenants. A notice that is served in person is considered to be served the same day while posting notice on a tenant’s door or in a tenant’s mailbox has a delay of three days. Landlords utilizing Canada Post to send regular letter mail or registered mail will need to factor in a five-day delay. For information about using email as a method of service please refer to the LandlordBC guide.
The Form
As with many residential tenancy processes, there is an approved form landlords must use when increasing rent. You can find the rent increase form here. LandlordBC encourages members to always ensure they are using the most up-to-date form by printing them off directly as needed.
Additional Rent Increase for Capital Expenditures
Landlords that would like to raise rent higher than the allowed percentage to recoup costs incurred by capital expenditures should read the LandlordBC Additional Rent Increase guide before serving their annual rent increase notice.