B.C. caps rent increase at 3% for 2025, matching inflation rate

The British Columbia government has set a cap of three per cent for the maximum allowable rent increase in 2025, down from the 3.5 per cent permitted in 2024.

Housing Minister Ravi Kahlon announced that the province's decision to link the maximum rent hike to inflation will help renters save hundreds of dollars, while still allowing landlords to recover rising costs related to maintaining rental properties.

Before 2018, the maximum allowable rent increase in B.C. was inflation plus two per cent. The new three per cent cap will take effect on or after January 1, 2025.

“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government's policy of inflation plus two per cent," Kahlon said in a statement on Monday.

“At a time when we know renters are struggling, our rent cap protects renters from unfair hikes, while ensuring landlords can manage rising costs so that rental homes remain available in B.C.'s housing market.”

Landlords intending to raise rent must provide tenants with three months' notice, and rent cannot be increased more than once in a 12-month period.

This three per cent cap does not apply to commercial leases, housing co-operatives, or certain assisted-living facilities.

Although residential landlords are subject to the cap, exceptions exist. Under the B.C. Residential Tenancy Act, landlords can request larger increases to cover expenses such as building upgrades or rising interest rates.

In 2023, the B.C. government introduced a renter’s tax credit, offering up to $400 annually to low- and moderate-income rental households. During the COVID-19 pandemic, the province imposed a rent freeze in March 2020, cancelling planned increases until July 2021.