B.C. announced next year's rental increase cap on Monday (Aug. 26), saying landlords will be allowed to raise rates by a maximum of three per cent in 2025. 

The figure is 0.5 per cent lower than this year's cap of 3.5 per cent. 

Housing Minister Ravi Kahlon said in a statement that the cap both "protects renters against unfair rent hikes" and allows "landlords to meet rising costs so that rental homes can stay in B.C.'s housing market."

The cap is not without workarounds, however. Landlords who wish to raise rent higher can apply to do so with British Columbia's Residential Tenancy Branch. 

A May 2024 decision from the branch who requested to raise their tenants' rents by 27 per cent 91ÂãÁÄÊÓƵ“ 23.5 per cent beyond the 3.5 per cent cap 91ÂãÁÄÊÓƵ“ to cover the costs of a ballooning mortgage.

Rob Patterson, a lawyer with B.C.'s Tenant Resource and Advisory Centre, told The Canadian Press he has rarely seen landlords use that avenue, but that he fears more will try to take advantage of it following the May ruling. He said the province should cut out that regulation entirely. 

In response, the Ministry of Housing said the ruling is the first it is aware of since it began collecting data in 2021.

Kahlon further told Black Press Media on Monday that he has directed staff to review the rent increase review policy.

"Certainly we don't believe that someone who makes bad investment decisions should get protections when people are struggling in communities to afford the rents that they already have," he said referencing the May Residential Tenancy Branch decision. "It is important for us to review these policies to ensure that they're fair and adequate to everyone."

He said he couldn't provide a timeline on when that review would be done. 

In B.C., rental increase caps have been tied to the average rate of inflation since 2018. Prior to that, governments were allowed to add two per cent on top of inflation. 

Landlords must give tenants at least three months notice prior to a rent increase. They can introduce 2025's jump beginning on Jan. 1. 

-With files from The Canadian Press and Wolf Depner