The cost of living keeps going up and a big factor in that is the cost of maintaining rental units. The cost of the services required to maintain your rental unit are subject to change with very little notice and there is no way of passing your increased cost of doing business to your existing tenants, the only exception being an annual rent increase.
As a landlord you are able to raise your tenants' rent once a year (12 months from the last increase or the date the tenancy began), but as BC has government imposed rent controls, the maximum amount of increase is limited. The limit is tied in part to the consumer price index, resulting in a maximum increase of 4.3% for any rent increase effective in 2012. In early September, the government will announce the limit for 2013.
Despite your cost increases, you need to consider the market in your area when deciding whether to increase rents for existing tenants. Higher vacancy rates give tenants more flexibility to move if they think their rent is too high.
-- Al Kemp and Hunter Boucher
-- Al Kemp and Hunter Boucher
We received a rent increase notice in the early spring with notice of increase for july 1st. Our apartment complex in the meantime was sold. Are the new owners entitled to the rent increase?
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