Rent Increases
Earlier in 2021 the BC government extended the rent increase freeze until December 31, 2021. At this time the freeze has not been extended beyond this date and the government has announced the allowable rent increase limit for 2022. The allowable limit for 2022 is 1.5%.
This means if you have a tenancy which was started before January 1st 2021 your property is eligible for a rent increase. In BC landlords are allowed to increase the rent once every 12 months. An increase doesn’t have to happen at the same time each year. If you are planning to increase the rent of your investment property it must be in a form approved by the residential tenancy branch. The RTB requires a rent increase notice be served three months in advance of the date the increase takes effect. If you are planning to raise the rent for January 1st you need to ensure notice is served by September 30th, 2021.
The form required is RTB 7, “Notice of Rent Increase”. The notice must be served to the tenant in one of the approved formats for service under section 88 of the Residential Tenancy Act. Common ways to serve the notice are leaving it with the tenant in person, leaving it with an adult who resides at the property, in the mailbox of the unit, sending a copy by regular mail, registered mail, faxing or emailing to a number or address provided for service.
It is important to understand that each form of delivery has a determination of when it is received by the tenant. This is called “deemed received”. When handing a notice to a tenant directly, it is received on that day. When sent by mail, regular or registered, it is received on the fifth day after it is mailed. This means if you send it on the 5th it is not deemed received until the 10th, as you are not counting the 5th. When leaving it at the mailbox, by fax, email or with an adult at the property, it is deemed received three days after it is sent or left at the property. Again you don’t count the day it was sent so an item delivered in these formats on the 5th is deemed received on the 8th. Often these dates are misunderstood and people count the day they sent it as one of the 3 or 5 days.
It is important to ensure that the notice is delivered in a timely manner to meet the deemed received requirements or the tenant may have the option of disputing the notice, which could result in the tenancy branch cancelling the notice, requiring a landlord to send a new notice effective three months later. We always recommend notices be sent in a timely manner and depending on the notice, in a format that allows for acknowledgement of receipt of the notice.
Need assistance managing your rental property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
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