Government sets standard rent increase at 3.5% for 2024.
In 2022 the government implemented a cap on 2023 annual rent increases of 2% which significantly deviated from the inflation rate. This came after a year of 1.5% rent increase for 2022 and a total cap for much of 2020 and all of 2021. It was no surprise that this decision had profound implications for our sector. Despite significant efforts, including a letter writing campaign earlier this summer, the government has unfortunately elected to take a similar stance.
In an announcement on September 11, 2023, Ravi Kahlon, Minister of Housing, announced the implementation of a 3.5% cap on standard annual rent increases for the entire year of 2024. This cap is applicable to any standard annual rent increase set to take effect within the 2024 calendar year.
We know that many of you, our members, are facing difficult trials not seen before in the rental housing sector. The issues facing the rental sector are unprecedented. Know that we are committed to representing and defending your rights as owners and managers of rental housing. LandlordBC will not let up on its advocacy to ensure that government better understands and recognizes the critical role landlords play and the challenges we face. A balanced rental housing landscape is one that takes into account the very real pressures felt by both landlords and tenants. Helping renters while harming landlords is not a workable solution.
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 2023 will be effective for January 1st, 2024.
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.
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.