New Rent Increase – What You Need to Know
This information was released to LandlordBC members on Wednesday, September 26th, 2018. We are offering this important information to non-members today in recognition of our commitment to support all residential rental housing landlords and property managers in BC. Government advocacy is a complex and dynamic undertaking requiring significant resources. You can support our efforts by becoming a LandlordBC member today. Please go to www.landlordbc.ca/memberships and join now! We need your support so that together we can advocate for a healthy and vibrant rental housing industry.
With the announcement of a new rent increase of 2.5% it is important to understand how this may affect any rent increase you have already served or will serve. The change announced by Premier Horgan effects rent increases set to take place starting January 1st, 2019.
Have you already served a rent increase?
Landlords that have already provided notice to their tenants for 2019 are required to complete an updated form with the new rent increase formula and provide notice to tenants. 3 months’ notice requirement is not applicable to the updated notice. We recommend serving the updated rent increase form as soon as possible.
The effective date for any rent increase already served and received in September will not change. This means that if the rent increase was to occur January 1st serving the updated rent increase, even if it is received after September 30th, will not change this effective date.
Rent increases effective prior to January 1st, 2019 are not affected by this change in rent increase formula and still have a cap of the 4.0% 2018 Maximum Annual Increase.
Are you considering serving a notice of rent increase for January 1st or later?
If you have not already served a notice of rent increase but you plan on serving a notice the new rent increase the rate is now 2.5%. The same process for increasing the rent applies in this situation. You are required to give 3 months’ notice on the RTB approved form. The form can be found at the RTB website.
For a notice of rent increase to be considered effective for January 1st it must be received by the tenant no later than September 30th, 2018. Commonly used methods of service include:
- Personally, in the tenant’s hand which is considered serviced that day
- On the tenant’s door or in their mail box which is considered served 3 days later
- Via mail or registered mail which is considered served 5 days later