BC limits rent increases to 3 percent next year, in line with inflation

VICTORIA — The maximum allowable rent increase in British Columbia will be 3 percent next year, up from the current 3.5 percent.

The Housing Ministry says the new amount, which comes into effect on January 1, is indexed to inflation and comes after increases in 2023 and 2024 were kept “well below the rate of inflation”.

Housing Minister Ravi Kahlon said in a press release that an inflation-adjusted rent increase “saves tenants hundreds of dollars” compared to the previous administration's policy of allowing an increase of the rate of inflation plus 2 percent.

He says the inflation-indexed rent cap protects tenants from unfair rent increases while allowing landlords to cover rising costs.

The ministry states that the allowable rent increase is determined by the change in the consumer price index for all items in the province for the year ending July.

It states that landlords who wish to increase their rent must notify tenants three months in advance using an official form and that the rent cannot be increased more than once every 12 months.

The ministry says the maximum increase in rental fees for caravan parks will also be three percent, plus a pro rata amount for the change in municipal taxes and utility charges.

The 3 percent cap does not apply to commercial tenancies, non-profit residential tenancies where rent is determined based on income, housing cooperatives and some assisted living facilities.

This report by The Canadian Press was first published August 26, 2024.

The Canadian Press