BC Rent Increase Limit for 2026: What Landlords Need to Know

The maximum allowable rent increase in British Columbia is 2.3% for increases that take effect in 2026, and the Province has set the limit for 2027 at 2.2%, effective January 1, 2027. A landlord can raise the rent once every 12 months, with at least three full months' written notice on the Residential Tenancy Branch form. Because of that notice period, most increases served from October 2026 onward will take effect in 2027, so the 2.2% limit is the one to plan around.

Here is how the limit works, how to give notice correctly, and what changes for fixed-term leases.

The 2026 and 2027 limits

The Residential Tenancy Branch (RTB) sets the limit each year. It equals the 12-month average change in BC's all-items Consumer Price Index, ending in July of the year before the increase takes effect.

The limit is tied to the date the increase takes effect, not the date you serve the notice. On a $2,000 monthly rent, 2.3% is $46 a month and 2.2% is $44 a month. The RTB is explicit that landlords cannot round up, so use the RTB's online rent increase calculator for the exact figure.

If utilities or other services are included in the rent, the limit still applies, even if your own costs for those services have gone up more.

Who the limit covers

The limit applies to residential tenancies under the Residential Tenancy Act. The Province lists exceptions: commercial tenancies, non-profit housing where rent is geared to income, co-operative housing, and some assisted-living facilities. Manufactured home park tenancies have their own formula.

A furnished rental of 90 consecutive days or more can also be a tenancy under the Act, depending on how the agreement is set up, in which case these rules apply to it as well. Our guide to mid-term rentals in Vancouver covers that in more detail.

When you can raise the rent

Rent can be increased once every 12 months. The 12 months run from whichever is later:

• the date the rent was set at the beginning of the tenancy, or
• the date of the last lawful rent increase.

The 12-month rule still applies if a new owner buys the property, or if a new tenant takes over through a sublet or an assignment of the tenancy agreement.

Unused increases do not carry forward. If you skipped last year's increase, or only applied part of it, you cannot add the difference to this year's. Each increase is capped at the current year's limit.

How to give notice

The notice rules are strict, and the RTB treats them as part of what makes an increase lawful:

1. Use the right form. The notice must be on the RTB's Notice of Rent Increase (form RTB-7).
2. State the exact dollar amount of the increase and the date it takes effect.
3. Give three full months' notice. The tenant must receive the notice at least three full months before the effective date.
4. Allow for delivery time. Under the Residential Tenancy Act, a notice sent by mail is deemed received on the fifth day after mailing, and one attached to the door or left in the mailbox is deemed received on the third day. Build those days into your timeline.

If a notice does not give enough time, it is not thrown out: it takes effect on the earliest date that does comply. An increase above the limit, or one without proper notice, does not have to be paid, and a tenant who has overpaid can deduct the difference from future rent.

Utilities and fees

Separate charges for utilities or other services can only go up with the tenant's agreement. Charges that have been agreed in writing cannot be raised on their own.

Raising rent above the limit

There are two lawful routes above the annual limit.

The tenant agrees in writing. A landlord may ask, and the tenant does not have to agree. If they do, the written agreement must show the exact dollar amount, the effective date, any conditions, and the tenant's signature. Notice must still be given.

An additional rent increase from the RTB. Landlords can apply in two situations:

• Eligible capital expenditures. Major repairs or replacements, such as a roof, windows or a boiler, may qualify if the work was completed and the costs incurred within the 18 months before applying, and the work is not expected to recur for at least five years. Costs caused by poor maintenance, or covered by insurance or a rebate, do not qualify. An approved amount is spread over 10 years, with a maximum of 3% per phase on top of the annual increase.
• Certain expenses. The RTB lists significantly higher costs for services included in the rent, and unforeseen financing costs of buying the property, as examples. This application is filed on form RTB-52 with a fee of $300 plus $10 per affected unit, to a maximum of $600.

Tenants can take part in either process and dispute the application. An approved increase still needs three months' notice on the prescribed form.

Fixed-term leases

Fixed-term agreements catch out many landlords. The RTB's position, set out in its fixed-term policy guideline, is:

• The limit applies between fixed terms. A rent increase between fixed-term agreements with the same tenant for the same unit must follow the rent increase rules, including timing and notice.
• A new lease is not consent to more. A tenant signing a new fixed-term agreement does not count as written agreement to an increase above the limit.
• Most leases roll to month-to-month. At the end of a fixed term, the tenancy continues month-to-month on the same terms unless the parties sign a new agreement. If the tenant prefers month-to-month, the landlord cannot require them to sign another fixed term.
• Vacate clauses are narrow. A clause requiring the tenant to move out at the end of the term is only allowed if the landlord, or a close family member, will move in, or if the agreement is a sublet. The reason must be written in the agreement and initialled by both parties.

In practice, a fixed-term lease sets the rent for its term, and the same annual limit and notice rules govern what happens when it ends.

Before you serve a notice

A quick checklist: confirm the 12 months have passed, check which year's limit applies to your effective date, calculate the dollar figure without rounding up, complete form RTB-7, and serve it with enough time for delivery. This is general information rather than legal advice, so confirm the details of your own tenancy with the RTB.

For long-term tenancies, Artin Realty, our BCFSA-licensed brokerage, handles the lease and renewals as part of managing the tenancy, with rent held in trust. Our property management page explains how each rental length is run, and short-term vs mid-term vs long-term rentals in BC compares the options.