Rent Increase Cap
On Wednesday, September 7, BC’s Premier John Horgan announced that the 2023 standard annual rent increase percentage would not be based on inflation but instead capped at two percent. This percentage is in effect for any standard annual rent increase with an effective date within the 2023 calendar year. LandlordBC is extremely disappointed with this decision and very concerned about the negative impacts it will have on the long-term viability of our sector in BC. How will this help renters in the long term? LandlordBC intends to pursue answers and seek appropriate consideration for our sector.
You can read the government media release here.
The stakes for our province are very high
BC’s rental housing ecosystem is facing very precarious times. So much so that something has to give, and it is in the government’s court to create that give. We appreciate that it’s a challenge to bridge the worlds and needs of renters and landlords, but it needs to happen if we are going to come up with actual workable solutions to the quandary we find ourselves in. The government is “trying to have it both ways”. Advancing what they consider help for renters while at the same time ignoring the fact that they are harming landlords, the folks who provide this critical housing. That won’t work anymore. Government can’t expect positive results like continued investment in existing rental stock and construction of new purpose-built rental when they place the burden of the rental crisis solely on our sector. The whole housing system in BC is at risk if we continue down this path. We need to get all stakeholders on the same page to come up with actual workable solutions with the government taking the lead. No more pitting renters against landlords. No more demonizing landlords.
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 2022 will be effective for January 1st, 2023.
In addition to the timing of the notice, landlords must consider the method of service as well and use the correct and most up to date form. LandlordBC members have robust members only resources available to help navigate the standard annual rent increase process along with many other resources.