Owning rental property is
a great concept for building wealth, but requires a lot of hard work,
patience and planning.
increase your Tenant's rent each year up to, but not greater than, the
percentage equal to the inflation rate plus two percent. The allowable
rent increase for each calendar year is available on the Residential
Tenancy Branch's website. For 2017, the allowable rent increase is
Tenant's current rent:
allowable increase (3.7%)
rent would be
If you charge
an amount higher than the allowable amount, the Tenant does not have to
pay the excess rent unless the Tenant has been served with a dispute
resolution officer's order allowing the rent increase.
The notice must
be served three full months before the rent increase takes effect. For
example, Jane moved into an apartment on February 1, 2016 and pays rent of
$700.00 per month. The Landlord serves her a
Notice of Rent Increase by
registered mail on October 20, 2016 to pay rent of $725.90 beginning February 1,
2017. This rent increase was done in accordance with the Act.
If a Tenant has
paid an increase that was higher than the permitted amount, the Tenant may
deduct the amount from future rent.
To raise the
rent above the permitted amount, the Landlord must have either the
Tenantís written agreement or an Residential Tenancy Branch order. The
Landlord has the burden of proving any claim for a rent increase of an
amount that is greater than the prescribed amount. The Tenant will have
an opportunity to appear at the hearing of the application, question the
Landlordís evidence, and submit their own evidence.
Smart Landlord Tip
Landlord is an educated one; one who knows the rights of their Tenant and
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