1.3 Rent Increases and Non-payment of Rent
- 1.3.1 How much can rent be increased for a residential tenancy?
- 1.3.2 How much can rent be increased for a manufactured home park?
- 1.3.3 Can a landlord request a larger rent increase than the allowable amount?
- 1.3.4 What notice period is required for rent increases?
- 1.3.5 Can the tenant be late in paying rent?
- 1.3.6 What can the landlord do if the tenant does not pay rent?
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1.3.1 How much can rent be increased for a residential tenancy?
Residential tenancy landlords can increase rent annually by a percentage equal to the inflation rate plus two percent without tenants disputing the increase. For a residential tenancy rent increase that takes effect in 2006, the allowable increase is 4.0 percent.
If the landlord charges an amount in excess of the inflation rate plus two percent, 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.
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1.3.2 How much can rent be increased for a manufactured home park tenancy?
Manufactured home park landlords can increase rent annually by a percentage equal to the inflation rate plus two percent without tenants disputing the increase. For a manufactured home park rent increase that took effect before June 5, 2006, the allowable increase was 2.0 percent. Effective June 5, 2006, the allowable increase is 4.0 percent.
If the landlord charges an amount in excess of the inflation rate plus two percent, 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.
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1.3.3 Can a landlord request a larger rent increase than the allowable amount?
Residential tenancy landlords can ask a dispute resolution officer to allow a larger increase, using the Application for Additional Rent Increase form, if the landlord has completed significant repairs or renovations that could not reasonably have been foreseen and are not recurring with a reasonable time period, incurred a financial loss from an extraordinary increase in operating expenses, or incurred a financial loss from an increase in financing costs that could not have been reasonably foreseen.
A landlord seeking an additional rent increase under the above grounds must make a single application to increase the rent for all units in the building.
A residential tenancy landlord can also seek an additional rent increase if the rent for a rental unit is significantly lower than that of similar units in the area. A landlord who, as the head tenant of a rental unit, receives an additional rent increase can also apply for dispute resolution for an additional rent increase on that basis to increase the rent to a subtenant.
A manufactured home park tenancy landlord can ask a dispute resolution officer to allow a larger increase, using the Application for Additional Rent Increase form, if the landlord has completed significant repairs or renovations that are reasonable and necessary and will not recur with a reasonable time period, incurred a financial loss from an extraordinary increase in operating expenses, or incurred a financial loss from an increase in financing costs that could not have been reasonably foreseen.
A landlord seeking an additional rent increase under the above grounds must make a single application to increase the rent for all sites in the manufactured home park.
A manufactured home park tenancy landlord can also seek an additional rent increase if the rent for a manufactured home site is significantly lower than that of similar sites in the area. A landlord who, as the head tenant of a manufactured home site, receives an additional rent increase can also apply for dispute resolution for an additional rent increase on that basis to increase the rent to a subtenant.
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1.3.4 What notice period is required for rent increases?
In both residential and manufactured home site tenancies, the landlord is required to give the tenant three months notice of a rent increase in the approved form.
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1.3.5 Can the tenant be late in paying rent?
The tenant has an obligation to pay rent on time. No extension of time to pay rent is permitted unless there is agreement between the landlord and tenant, or a dispute resolution officer has determined that there are exceptional circumstances for paying late.
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1.3.6 What can the landlord do if the tenant does not pay rent?
A landlord can serve a Notice to End Tenancy under the relevant sections of the Residential Tenancy Act or the Manufactured Home Park Tenancy Act.
A landlord can serve a Notice to End Tenancy if the tenant does not pay the rent. The notice can be served the day following the day the rent is due. After the notice is received, the tenant has five days to either pay the rent in full or dispute the notice.
If the rent is paid in full, the notice is cancelled and the tenancy continues. If the tenant disputes the notice, the tenant must serve the landlord with an Application for Dispute Resolution and a date for the hearing.
If neither is done, the tenant must move out on the tenth day after the notice was received.
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