Residential Tenancies Branch

Section 13 

Rent Regulation

Sub-Section 13.2

Application for Rent Increase Above the Guideline: Late Application

  Legislation

s. 123(3), The Residential Tenancies Act

  Definitions

Annual rent increase guideline: the percentage that a landlord can increase rent without applying to the Branch for approval. The Government sets the amount each year. The guideline takes effect on January 1. For an explanation of how the annual rent increase guideline is calculated, click here. A landlord can apply for a larger increase if they can show that the guideline will not cover their increases in expenses. The guideline applies to most rental units, including apartments, single rooms, houses, duplexes, mobile homes and mobile home lots. The Residential Tenancies Act does not apply to rent increases on land leases.

Application for Rent Increase Above the Guideline: a form a landlord completes when they apply to the Branch to increase their rent by more than the annual rent increase guideline.

Economic adjustment factor: a percentage the Government sets each year as part of the rent increase guideline. The Economic Adjustment Factor recognizes the non-operating part of the rent revenue. The Government considers inflation when setting the Economic Adjustment Factor.

Policy

A landlord must apply to the Branch for a rent increase above the guideline at least two and one-half months before the date of the first increase. For example: A landlord gives a tenant notice on June 15 that they plan to increase the rent by more than the guideline on October 1. The Branch must receive the application by July 14. If the deadline for filing an applications falls on a weekend or statutory holiday, the deadline is extended to the first business day following the weekend or holiday.

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A landlord who sends in an application after the deadline can either:

• take a lower rent increase that is within the guideline; or

• change the date that the rent increase is to take effect, so that there is a new deadline for applying. The landlord must give affected tenants a new written notice of the proposed rent increase. For example: The landlord gives tenants notice of rent increase on June 30 for an October 1 rent increase. The Branch receives the landlord’s application on July 20, after the deadline. The landlord can either take a guideline increase on October 1 or postpone the proposed above guideline increase to November 1.

  
  

Procedure

Overview   

An officer receives a late application. The officer explains the options to the landlord. If the landlord doesn’t choose an option, the officer makes a decision on the available information and issues an Order setting the rent.

Steps ▼   

1.   When the Branch receives an application for a rent increase after the       deadline, the officer telephones the landlord and explains the landlord’s       options:

Option 1 – Lower the amount of the rent increase to the                        guideline

Option 2 – Postpone the date of the rent increase

2.   The officer gives the landlord two weeks to make a decision.

      If the landlord chooses Option 1, the officer asks the landlord to write the       tenants to tell them that the rent increase has been lowered.

      The landlord can either use the Notice of Rent Increase form or       write their own letter. The landlord must send the Branch a copy of this       notice.

      If the landlord chooses Option 2, the officer asks the landlord to write a       letter to the affected tenants, telling them that the effective date of the       increase has been postponed. The landlord must send the Branch a       copy of the letter.

3.   If the landlord doesn’t make a decision within two weeks, the officer       issues an Order setting the rent. The officer may:

• allow a guideline rent increase (unless there is a tenant objection);
• allow an increase which equals the economic adjustment factor;
• set the rent increase at $1.00 per month per rental unit; or
• not allow any rent increase.

Forms & Form Letters

Application for Rent Increase. To see Form 3 click here

X-Referencing

For more information on rent increase above the guideline, see this section.

Policy Developed

September, 1992

Last Revision

August, 2015

Other Resources

None

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