Rent increases in British Columbia are allowed and regulated by the Residential Tenancy Act. Landlords who rent residential property are allowed to increase rent annually by a percentage equal to the inflation rate plus two percent.  Tenants are not allowed to dispute this increase at arbitration.

The allowable increase for standard tenancy agreements in 2010 is 3.2%

     There are several conditions that must be met before this increase in rent can occur:

·       A 3 month notice of the increase must be given in writing.

·       Rent may be increased only once in a 12 month period.

·       Rent may only be increased by the amount allowed under the RTA.

There are a couple of circumstances where the annual rental rate may be increased more than the amount allowed by the RTA.

1)   The tenant may voluntarily agree to an increase above the amount allowed by the RTA. For example, in a tight rental market, it might be advantageous to do so, or risk the lease not being renewed and the tenant being forced out of the apartment.

2)   The landlord has made substantial improvements on the property or is providing extra services for the tenant.

 If the landlord requests an increase in the rent above the amount allowed by the RTA, then the tenant has the right to dispute the increase at arbitration.  There is a fee for filing for dispute resolution, so you should always try to resolve any disputed matters privately first.