The B.C. government has limited residential rent increases to 3% for 2025.

The decision has wide-ranging implications for multi-family property investors and managers. The increase will be tied to inflation.

The move reduces the cap by 50 basis points from 3.5% this year. The province has also implemented a renter’s tax credit of $400 per year for low- and medium-income renters across B.C.

B.C. has also become the first Canadian jurisdiction to support the creation of province-wide rent-bank services that provide interest-free loans for tenants in urgent circumstances, said the government in a news release.

“At a time when we know renters are struggling, our rent cap protects renters against unfair rent hikes, while allowing landlords to meet rising costs so that rental homes can stay in B.C.’s housing market,” said Housing Minister Ravi Kahlon.

Landlords will only be able to increase rent if 12 months have passed since a tenancy began or rent was legally increased during an existing tenancy.

“Tying the annual allowable rent increase to inflation is consistent with the recommendations from the Rental Housing Task Force to support renters and ensure that rental homes can stay available for renters,” said Spencer Chandra Herbert, the premier’s liaison for renters and MLA for Vancouver West End.

The maximum allowable rent increase cannot take effect until January 1, 2025.

Photo: B.C. Housing Minister Ravi Kahlon