BC Rent Hike Alert 2025: New 3% Cap Linked to Inflation – What You Need to Know

In 2025, the Province of British Columbia will tie the yearly permitted rent rise to inflation at a rate of 3%, which is lower than the 3.5% allowable increase this year. Before January 1, 2025, the maximum yearly rent increase permitted for 2025 cannot go into force.

Prior to 2018, government policy permitted a 2% rent increase on top of inflation. Furthermore, the Province is the first Canadian jurisdiction to support the establishment of provincewide rent bank services that offer interest-free loans to tenants in dire situations.

Additionally, the Province has implemented the annual renter’s tax credit, which gives $400 annually to low- and moderate-income renters throughout British Columbia.

“Tying the allowable increase to inflation saves renters hundreds of dollars over the previous government’s policy of inflation plus 2%,” said Housing Minister Ravi Kahlon.

Our rent cap shields tenants from unjust rent increases during a period when we know they are having financial difficulties, while enabling landlords to keep up with growing expenses and keep rental properties in the British Columbia real estate market.

In conclusion

• The 12-month average percent rise in the all-items Consumer Price Index for British Columbia ending in July of the year before the calendar year in which the rent increase takes effect determines the maximum permitted rent increase.
• In addition to a corresponding rise for the change in local government taxes and regulated utility rates, the maximum increase for tenancies in manufactured-home parks in 2025 will also be 3%.
• Commercial leases, non-profit housing leases with income-based rent, cooperative housing, and certain assisted-living facilities are exempt from the rent increase.
• In the event that landlords decide to raise rent, they are required by the Residential Tenancy Act to give tenants three months’ notice using the appropriate Notice of Rent Increase form.
• In a 12-month period, rents cannot be raised more than once.