This post will be our first post in a series about renting in Vancouver. As a realtor and a Vancouverite, I’ve had many questions about renting and being a landlord. A topic on everyone’s mind in Vancouver is the cost of rent. Whether you’re a landlord looking to rent your place or someone looking for a home, you’re always searching for the perfect price. But just like the weather in Vancouver, prices can and will change.
The change in rent amount is due to the BC Government. They allow landlords to increase the rent if it has been the same for at least 12 months. With this rule, landlords are restricted to the amount they can increase. However, this amount is not always the same, it changes yearly. The increase amount will always equal the current inflation rate plus 2%. For 2018 the allowable rent increase is 4%. This means that if rent is $1200 a month the new rent will be $1248. 4% may not sound like a large number, but over the period of 12 months, it adds up to $576. This can make a huge impact on certain tenants or landlords.
Making the Increase
As a landlord, to legally increase the amount your tenants pay, you must give three full months’ notice before the increase can be put in place. Also, as mentioned above, the rent must have been the same for the previous 12 months. To increase the rent above the allowable rate, landlords must either have a signed agreement with the tenant or a Residential Tenancy Branch Order. This process, however, requires hearings to prove that the rent increase is in fact necessary.
If you have any further questions or if you’re looking into purchasing an investment property, feel free to contact us for further details.
All information from this article was sourced from the Government of British Columbia website.
No comments yet