British Columbia’s Ministry of Housing has announced the new rent increase guideline for 2025. This guideline sets a limit on how high you can raise your rent price for a residential property. If you’re a landlord planning to hike your rent in 2025, the guideline is a number you’ll want to become familiar with. Charging more than what’s allowed in the province can spur legal trouble and complaints from tenants.

In this article, we’ll explain the maximum amount you can raise your rent, how and when to notify your tenant, what properties the guideline impacts, and instances where you may qualify to increase your rent beyond the legal limit.

2025 updates to British Columbia’s rent increase guidelines

The rent increase guideline in British Columbia for 2025 is 3%. In other words, 3% is the maximum amount that you can raise your rent on a residential property. For example, let’s assume you’re renting out a condo you own for $1,200 a month and wish to increase your price in 2025. In this scenario, the most you can charge your tenant is $1,236.

Under certain circumstances, you may increase your rent by more than the allowable amount under the guideline. However, you must obtain permission from the province’s Residential Tenancy Branch (RTB).

The 2025 rent increase guideline of 3% applies to manufactured home park tenancies, too. But as the property owner of a mobile home, you can also add a proportional fee to your rent price to cover increases in local government levies and regulated utility costs.

In most cases, you can raise your rent only once per 12-month period. More specifically, a rent increase is allowed 12 months after:

• The last rent increase (including assignments)
• The start date of a tenancy

Furthermore, you can’t apply a rent increase in 2025 that relates to a previous year. For example, in 2024, the maximum allowable rent increase was 3.5%. If you raised your tenant’s rent by only 1.5% in 2024, you can’t carry forward the remaining 2% and add it to your 2025 rental rate. You must use the full rent increase only in the year in which it applies. Otherwise, it’s lost forever. 

If you plan to bump up your rent in 2025, you must give your tenant three months’ notice using a government-approved form. 

What properties does the British Columbia rent increase guideline affect?

The 2025 rent increase guideline applies to rental properties as specified in British Columbia’s Residential Tenancy Act (RTA) and the Manufactured Home Park Tenancy Act, including:

• Rented houses
• Apartments
• Condos
• Basement apartments
• Care homes
• Mobile homes
• Land lease communities

Here are some rental units that the guideline doesn’t apply to:

• Vacant residential units
• Community housing units
• Long-term care homes
• Commercial properties
• Military housing
• Social housing

For a complete list of the types of properties governed under the RTA or Manufactured Home Park Tenancy Act, check out this list.

2025 rent increase exceptions

Under extraordinary situations, the RTB may permit you to raise your rent beyond the allowable amount under the rent increase guideline. According to Section 23 of the Residential Tenancy Regulation (RTR), which complements the legislation found in the RTA, there are three situations where you may qualify to increase your rent higher than the annual guideline:

• You incurred a financial loss on your property due to an extraordinary increase in operating costs.
• You incurred a financial loss on your property due to the significant financing costs of purchasing it, which you could not foresee under ordinary circumstances.
• You, as a tenant, received an additional rent increase for the same rental property.

To determine if you qualify for an exemption, send an application to the RTB using form RTB-52. Visit this link to learn more about the process for claiming an exemption.  

In some cases, exceptions to the rent increase guideline apply automatically, which means there’s no need to request permission from the RTB. For example, the guideline affects only the rent portion of a bill for a care home; it excludes services like nursing, food, and cleaning. As a result, you can charge tenants whatever fee you deem appropriate for these services.

How to raise rent in British Columbia

Are you planning to raise your rent price for your British Columbia property in 2025? Here’s how to do it:

Step 1: Determine your new rent price

Your first task is to figure out your new rent price. Your new rate should balance both affordability for tenants and profitability for your rental business.

Your rent price will depend primarily on the going rate for similar units in your region. Compare your rental property with those in your vicinity to see the average rate. Let local market trends guide you when deciding on a fair and reasonable price.

Another critical factor to assess is your operating expenses, such as property taxes, mortgage payments, utilities, maintenance, and insurance premiums. Add up your costs to see if they increased during the past year and by how much.

Step 2: Obtain and fill out the required documentation

Once you’ve determined your ideal rent price, it’s time to get it in writing so that you can inform your tenant of the upcoming increase. Depending on the nature of your tenancy, you’ll need to fill out one of the following documents:

•       RTB-7 Notice of Rent Increase
•       RTB-52 Application for Additional Rent Increase
•       RTB-45 Notice of Standard Rent Increase – Manufactured Home Site
•       RTB-11a Notice of Rent Increase – Manufactured Home Site

While not legally required, creating another document explaining the reasoning behind your rent increase is worthwhile. For example, you can include a detailed breakdown of your operating costs, noting how they’ve increased in the past year.

Being transparent with your tenant will help minimize complaints and confrontations. If you can justify your rent price with compelling facts, they’ll be less likely to challenge it.

Step 3: Notify your tenant of the upcoming rent increase

Once you complete the required rent increase form, submit it to your tenant, along with any other supporting documents.

In British Columbia, you must give tenants at least three months’ notice of a rent increase. Otherwise, it’s considered invalid, and they won’t have to pay it.

To ensure your tenant receives the notice on time, consider delivering it in person or sending it via registered mail. You can also use email if you’d like, but remember to verify that they received your message, as it could end up in their spam inbox.

Resolving issues about rent control

If you encounter issues with your tenant about a rent increase, you can apply to the RTB, which will arrange a hearing so you can present your case. You can apply for dispute resolution through the RTB using a Basic BCeID. Alternatively, you can submit a manual application at a Service BC office.

Our final thoughts

The maximum allowable rent increase in British Columbia for 2025 is 3%. This limit applies to most residential rental units in the province. For any rent increase to be legitimate, you must give your tenant three months’ notice using the approved form. 

If you’re considering bumping up your rent, ensure your new price doesn’t exceed this limit. If it does, your tenant can legally refuse to pay it. They can also file a dispute with the RTB. 

Under exceptional circumstances, you may request an exception from the RTB, allowing you to raise your rent beyond the guideline. Be prepared to support your case with compelling evidence and know that your tenant can challenge your application.

Visit the Government of British Columbia website to learn more about the province’s 2025 rent increase guideline.