Leasing season is just around the corner and if you haven’t decided if you should be increasing your rent, you’ll need to ensure you’re providing your tenants an appropriate amount of notice as soon as possible.
On average, the annual rental prices increase between 3-5%. However, due to COVID-19 and ongoing pandemic related restrictions, there have been some restrictions put in place limiting increases above 1.4%
Rent Increase Guidelines
First and foremost you want to abide by rental increase guidelines as outlined by the BC Government. The earliest rental increases that can take effect this year are July 10, 2021. Additionally, any landlords who have issued a notice for the year do not have to issue a new rent increase notice.
Writing a Rent Increase Letter
We can’t stress enough the importance of clear and concise communication. As a landlord or property manager, it is your job to make sure that your tenants have a clear understanding of exactly when the increase is expected to take place, how much it will increase, and on which date they will be billed for their rent. Another tip when writing your letter is to construct it similarly to a contract which includes a form for your tenant to sign and return to your office. The options could say the following:
I agree to the new monthly rent, effective X date. (If selected, you can then send the lease renewal letter.)
I do not agree to the new monthly rent and will vacate by X date according to the lease agreement.
When delivering your rent increase notice we suggest delivering it in person, or by mail with a return receipt. If you do choose to deliver your notice by mail, you will want to allow for time to travel before starting the number of days of notice.
If you have still had questions on how to write a rental increase letter or would like to see an example click here: Annual Rent Increase Letter
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