Additional Rent Increase

A landlord may apply for an additional rent increase if they have incurred eligible capital expenditures or expenses to the residential property in which the rental unit is located.

Apply for an Additional Rent Increase for Capital Expenditures (ARI-C) Apply online

To raise the rent above the standard (annual) amount, the landlord must have either the tenant’s written agreement or apply to the RTB for either an Additional Rent Increase for Expenses (ARI-E) or an Additional Rent Increase for Capital Expenditures (ARI-C). See below for details on the different applications.

Landlords can apply for an Additional Rent Increase for Capital Expenditures (ARI-C) here and use the Calculator to Estimate Additional Rent Increase.

 

 

Before applying to the Residential Tenancy Branch for an additional rent increase, a landlord may ask tenants to voluntarily agree to a rent increase greater than the annual allowable amount.  If the tenants agree to an additional rent increase, that agreement must be in writing.

The tenant’s written agreement must clearly show the agreed-upon rent increase (for example, the percentage increase and the amount in dollars) and the tenant’s signed agreement to that increase. 

If the tenants agree to an additional rent increase, the landlord must issue to each tenant a Notice of Rent Increase along with a copy of the tenant’s signed agreement to the additional amount. Tenants must be given three full months' notice of the increase.  A tenant’s rent cannot be increased more than once every twelve months.

Payment of a rent increase in an amount more than the allowed annual increase does not constitute a written agreement to a rent increase in that amount.

The Residential Tenancy Regulations  allow landlords to apply for additional rent increases when:
  • The landlord has incurred a financial loss from an extraordinary increase in the operating expenses of the residential property; 
  • The landlord has incurred a financial loss for the financing costs of purchasing the residential property, if the financing costs couldn’t have been foreseen under reasonable circumstances; 
  • The landlord, as a tenant, has received an additional rent increase for the same rental unit. 
 
The Manufactured Home Park Tenancy regulations allow the landlord to apply for an additional rent increase in the circumstances set out above. They also allow a landlord to apply for an additional rent increase if: 
  • The landlord has completed significant repairs or renovations to the manufactured home park that are: 
    • Reasonable and necessary, and
    • Will not recur within a period of time that is reasonable for the repair or renovation. 
Landlords must apply to the RTB for an order using an Application for Additional Rental Increase Form - RTB-52 (PDF, 1.9MB). This form cannot be filed online and must be submitted to the RTB directly, or through Service BC. 

Completing the Application

The landlord must complete the Application for Additional Rent Increase  Form – RTB 52 (PDF, 1.9MB) and submit it to the Residential Tenancy Branch.

Here are a few tips:

  • Determine the reason for the rent increase and complete that section
  • Fill in the required boxes– list the current rents, requested rents and the date of the last rent increase
  • Be sure to complete the entire form – don’t forget to sign it and attach the necessary proof to support the claim.

The landlord must also submit:

  • An application fee: $300 plus $10 for each affected unit or manufactured home site, to a maximum of $600
  • The rent history for the property or manufactured home park for the past three years
  • Proof of changes to the operating expenses and capital expenditures for a residential property or manufactured home park in the past three years
  • Any Residential Tenancy Branch decision about the property or any tenant living on the property during the past 12 months
  • Manufactured home park tenancy landlords applying for additional rent increases for repairs or renovations must also include proof that the renovations or repairs were NOT the result of inadequate maintenance
  • Information on any changes to services or facilities in the past 12 months

At the Hearing

Tenants may raise their concerns regarding the landlord’s proposed increase and provide evidence to substantiate their concerns. The arbitrator will hear both sides and consider all the evidence submitted before making an order. 

After the Hearing

If an order is issued, the landlord must notify affected tenants using one of these forms:

The approved increase should be indicated on the form. The landlord must give the tenants three whole rental months’ notice before the rent increase comes into effect.
The Residential Tenancy Regulation will allow landlords to apply for additional rent increases when they have completed necessary repairs to the rental unit or building. These provisions encourage landlords to invest in their rental properties by allowing them to recover some of those costs through modest rent increase approved by the Residential Tenancy Branch.

Criteria for eligible capital expenditures

A landlord may apply for an additional rent increase if the landlord has incurred eligible capital expenditures to the residential property where the rental unit is located.

Capital expenditures are eligible if they are incurred for the installation, repair or replacement of a major system or major component for one of the following reasons:
  • To maintain the residential property in a state of repair to comply with health, safety, and housing standards;
  • That has failed, is malfunctioning, is inoperative, or at the end of its useful life; or
  • That achieves a reduction in energy use or greenhouse gas emissions, or an improvement in the security of the residential property.

To be an eligible capital expenditure, the landlord must also establish the following:

  • The capital expenditures must have been incurred within the 18-month period prior to applying to the Residential Tenancy Branch; and
  • The capital expenditures are not expected to recur for at least 5 years.
Some examples of eligible capital expenditures include: replacing an asphalt roof that is at the end of its service life, updating the single-pane windows for a rental building because they are now obsolete, or a new boiler for the building. 

Expenditures that are not eligible

There are a few criteria where the capital expenditures are not eligible as part of the additional rent increase, such as:

  • Costs that are the result of inadequate repair or maintenance by the landlord are not eligible for this process;
  • Where the landlord has been paid or is eligible to be paid from another source (e.g. rebates or an insurance claim reimbursement); and
  • Routine, ongoing, or annual maintenance, such as cleaning carpets, repairing a leaky faucet or pipe under a sink, or painting the walls of the rental property.

Rules for the additional rent increase for capital expenditures

A formula set out in the Residential Tenancy Regulations determines the additional rent increase amount that can be imposed on each tenant. The formula factors in the amount of eligible capital expenditures and the number of dwelling units (rental units and non-rental living accommodation, such as a landlord occupied unit), amortized over a 10-year period or 120 months. This formula is used to calculate an eligible rent increase amount that the landlord can apply on the tenant’s rent.

When applying the additional rent increase to a tenant’s rent, it is capped at a maximum of 3% per year, plus the annual rent increase. Any eligible rent increase amount that exceeds the 3% cap can be rolled over to the second and third year, if necessary. The additional rent increase must be given with the annual rent increase and must comply with notice and timing requirements under the Act. This means that the landlord must provide at least 3 months’ notice and at least twelve months have passed since the last rent increase or when rent was first established before the new rent amount with the additional rent increase takes effect.

What to expect when taking part in this process

Beginning in July, residential tenancy landlords may apply to the Residential Tenancy Branch for additional rent increases for eligible capital expenditures available only through the Branch’s online application portal. The process involves a participatory hearing, which means that both the landlord and the tenants involved may take part in the hearing and make submissions regarding the landlord’s application.

When a landlord applies, the Branch will provide the landlord with a Notice of Dispute Resolution Hearing package which the landlord must serve on each tenant involved in the rent increase. The package will contain details of the application, such as information regarding the capital expenditures being claimed and the associated evidence submitted by the landlord in support of their claim. Additionally, the package will also include information for the teleconference hearing that tenants can participate in and a dispute code used to submit evidence if the tenant believes that the costs the landlord is claiming are not eligible.

After the hearing takes place, a decision will be issued to each landlord and tenant. If the landlord is successful, the decision will set out the eligible rent increase amount that is granted by the arbitrator based on the formula. To impose the additional rent increase, the landlord must provide each tenant with a Notice of Rent Increase that includes a detailed breakdown showing how the additional rent increase is applied and a Notice of Rent Increase with the new rent.

Want to estimate an additional rent increase amount? The Additional Rent Increase Explorer is a tool for estimating an additional rent increase based on the the cost to install, replace or repair a major system or component in a residential building (capital expenditure), divided up by the number of rental units affected by the installation, replacement or repair, over a period of 120 months (10 years).

Estimating an Additional Rent Increase Amount
​Estimate additional rent increase amounts based on the cost to install, replace or repair a major system or component in a residential building (capital expenditure)

​The additional rent increase amount shown in this calculator is an estimation and must not to be used to give an additional rent increase. The Residential Tenancy Branch is not bound to any results from estimations provided in the Additional Rent Increase Explorer. To apply for an additional rent increase, you must submit an on-line application to the Residential Tenancy Branch.

Calculate Additional Rent Increase Details
Calculate the maximum additional rent increase that can be imposed on a rental unit after receiving your decision. Use this tool to automatically generate your RTB-53-P1D form

 

The content on this website is periodically reviewed and updated by the Province of British Columbia as per the date noted on each page: February 16, 2022.

Contact the Residential Tenancy Branch