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Agreed Rent Increases in BC: When a Tenant Can Agree to More Than the Limit
FAQBritish Columbia

Agreed Rent Increases in BC: When a Tenant Can Agree to More Than the Limit

An agreed rent increase in BC needs a signed, dated written agreement stating the increase, plus a Notice of Rent Increase served three full months ahead.

Yes, a BC tenant can agree to a rent increase above the annual limit (2.2% for 2027), but only in a signed, dated written agreement that states the increase in percent and dollars. The landlord must still serve a Notice of Rent Increase three full months ahead, and the 12-month gap between increases still applies.

What makes an agreed rent increase valid in BC?

Checklist for a valid BC agreed rent increase: in writing, percent and dollar amount, conditions, signed and dated

Section 43(1)(c) of the Residential Tenancy Act allows an increase "agreed to by the tenant in writing". RTB Policy Guideline 37B says the agreement must:

  • be in writing;
  • state the increase clearly, for example as a percentage and a dollar amount;
  • set out any conditions attached to it, such as a new parking stall or appliance;
  • be signed by the tenant; and
  • show the date the tenant signed.

A verbal "yes", or simply paying a higher amount, does not meet that test.

How to put an agreed increase into effect

A new parking stall offered with an agreed rent increase
  1. Write the agreement with the current rent, the new rent, the percentage, the effective date and any conditions, and have the tenant sign and date it.
  2. Fill in the Notice of Rent Increase (RTB-7) with the agreed amount.
  3. Attach a copy of the signed agreement to the notice, as Guideline 37B recommends.
  4. Serve it at least three full months before the effective date, and no sooner than 12 months after the last increase took effect (RTA s.42).
  5. Keep both documents in the tenancy file in case the increase is disputed.
Pro Tip: Tie the agreement to something concrete the tenant gains, and write that condition into it. A bare request for more than the limit invites a dispute; a stated condition shows why the tenant agreed.

Frequently asked questions

Can a landlord and tenant agree to a second increase mid-year?

No. Policy Guideline 37 says the parties cannot mutually agree to a rent increase six months after an annual increase took effect, and the RTB can't change the timing rules. An agreed increase uses the same 12-month window as the annual one.

Does the landlord still need to serve RTB-7 if the tenant has signed?

Yes. Guideline 37B requires a Notice of Rent Increase three full months before the increase takes effect, with the signed agreement attached. If the notice is late, the increase takes effect on the earliest date that complies (s.42(4)).

Can a lease clause build in yearly increases above the limit?

Guideline 37B warns that a tenancy agreement term imposing an ongoing increase substantially above the annual amount, without compelling circumstances, may be unconscionable or unlawful.

Can a tenant dispute an increase they agreed to?

Yes, if the timing or notice rules weren't followed or the agreement's conditions weren't met. A tenant who paid a non-compliant increase can deduct it from rent or otherwise recover it (s.43(5)). See disputing a BC rent increase.

Is an agreed increase the same as an additional rent increase?

No. An additional increase is ordered by the RTB on a landlord's application for capital work or rising expenses; an agreed increase needs only the tenant's written consent. Both differ from the 2027 annual limit a landlord can apply without asking.

Serve the notice that goes with the agreement

Fill in BC's Notice of Rent Increase (RTB-7) online.

Open the RTB-7 form →

Free • No signup required

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Written by

Founder & CEO, Tenon10

Syed is the founder and CEO of Tenon10, an AI-native property management platform built for Canadian landlords and property managers. Before Tenon10 he was a Senior Software Engineer at Morningstar and a developer at Canadian Tire Financial Services, and he has been building rental-management software since 2020. He writes about Ontario tenancy rules, rent increases and running a small rental portfolio well.

More from Syed Maqutadir Rehman

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