Difference between revisions of "Rent Increase in Residential Tenancies (19:VI)"

{{REVIEWED LSLAP | date= September 7, 2020}}

:NOTE: Except for rent increases for one or more occupants and is authorized under the tenancy agreement by a term referred to in section 13(2)(f)(iv) of the RTA, section 6 of Ministerial Order 89 of 2020 and section 5 of Ministerial Order 195 of 2020 render rent increases that would have taken effect during the BC Provincial State of Emergency ineffective until the State of Emergency expires. If a landlord collects a rent increase that does not comply with these sections, the tenant may deduct the increase from rent or otherwise recover the increase. The Ministry of Housing has announced that they intend to amend the Order such that rent increase notices are effective on December 1st, 2020. Check https://www.emergencyinfobc.gov.bc.ca/covid19-provincial-state-of-emergency/ to see if the BC Provincial State of Emergency is currently in effect. Refer to https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/covid-19#serving for the most up to date information.

Landlords can raise rents by a set amount each year and can apply for rent increases above that amount (RTA, s 43(1)). A tenant may also agree to pay a greater increase than the percentage permitted; this agreement must be in writing. If the tenant does not agree then the landlord is required to go through the dispute resolution process (RTA s 43 (3)). The percentage for allowable rent increases is the inflation rate (Consumer Price Index, or “CPI”) plus 2 percent. The maximum allowable increase changes each January 1st Check the webpage titled Rent Increases (http://bit.ly/1cWKrDB) on the RTB website to find the maximum rent increase allowed for the current year. The increase can occur every 12 months of the tenancy with the time period running from the date of the last rent increase for that tenant or the date the rental agreement was entered into (s 42(1)). A tenant may not apply for dispute resolution to dispute a rent increase that complies with s 43(1) (permitted increase or an Arbitrator ordered increase). If a landlord collects a rent increase that does not comply with the RTA, the tenant may deduct the entire increase from the rent. The tenant should communicate the reason for the deduction to the landlord before taking this form of action.

A landlord may apply under s 43(3) of the RTA (additional rent increase) by making an application for a dispute resolution if one or more of the following conditions are met:

In the case where a tenant is remaining in the same rental location, but circumstances require a new lease is signed, any change in rent is still controlled by RTA s 43 as if the new lease is an extension of the original lease.

The tenant can apply to an Arbitrator under s 27 of the RTA, if the landlord starts to charge the tenant for a service or facility previously included in the rent (e.g. for cable television or laundry that was previously free), or takes away a service or facility previously enjoyed by a tenant (e.g. stops providing cable television or laundry that was previously included in the rent, without decreasing the rent proportionately).