RTB Rent Increase 2026

The Ministry of Housing and the Residential Tenancy Branch (RTB) announced that the maximum allowable rent increase for 2026 is set at 2.3%. This figure marks a shift from previous years, dropping from 3.0% in 2025 and 3.5% in 2024. For those navigating the B.C. rental landscape, here is a deep dive into what this 2.3% cap means for you and how to ensure you remain compliant with the latest regulations.

The Math Behind the 2.3%

For the second consecutive year, the B.C. government has tied the rent increase cap directly to the 12-month average change in the Consumer Price Index (CPI). By pegging the increase to inflation, the province aims to strike a balance: protecting renters from massive hikes while allowing landlords to recoup a portion of rising maintenance and operating costs.

Critical Rules for Landlords

If you are a landlord planning to implement an increase in 2026, you cannot simply send a text message or an email. To be legally binding, you must follow these three pillars of the Residential Tenancy Act:

1. The Three-Month Rule: You must provide the tenant with a minimum of three full months’ notice before the increase takes effect.
2. The One-Year Rule: Rent can only be increased once every 12 months. If you raised the rent in February 2026, you cannot raise it again until February 2027.
3. The Official Form: You must use the official RTB form (RTB-7: Notice of Rent Increase). Using an outdated form or a handwritten note can result in the increase being declared invalid by an arbitrator.

What Tenants Need to Know

As a tenant, you have the right to stable housing costs. It is important to remember that the 2.3% cap applies to the unit, not the person. If your landlord tries to "round up" or include extra fees for utilities that were previously included in your rent, they may be in violation of the Act.

If you receive a notice that exceeds 2.3%, or if you haven't been given the full three months of notice, you are not legally required to pay the increased amount. However, it is always best to start with a calm conversation or a written letter citing the RTB guidelines before escalating to a formal dispute.

Exceptions to the Cap

While 2.3% is the standard, there are rare exceptions:

Mutual Agreement: Landlords and tenants can voluntarily agree to a higher amount in writing.
Additional Rent Increases: Landlords can apply to the RTB for an "Additional Rent Increase" for significant capital expenditures (major repairs) or financial loss. These are not automatic and require a formal hearing.

The 2.3% cap for 2026 reflects a cooling of inflation but continues to present challenges in a high-cost province like B.C. Whether you are budgeting for your own home or managing a portfolio of investment properties, understanding these rules is the best way to maintain a healthy, professional landlord-tenant relationship.

KNOWLEDGE