Surrey Landlords The 2017 Rent Increase Guideline is 3.7% Should You Raise the Rent on Your Tenants?
With the foreign tax on properties in Vancouver, lots of investors are looking in other areas of British Columbia to invest their money. This includes places like Victoria, Nanaimo, Kelowna and Surrey.
Investors view these locations as a way to save money by avoiding a tax many feel is unnecessary and anti-business (and poorly implemented).
We’ve had many new BC landlords who have invested in Surrey reading our blog and participating in the BC Landlord forum. Some of the most common questions recently are about the rent increase guideline for 2017.
The 2017 BC Rent Increase Guideline is 3.7%
Let’s begin by writing about the BC rent increase guideline for 2017.
If you are planning on raising the rent remember you can only do so once a year by the legal permitted amount.
You also need to provide proper notice and use the proper forms and most give tenants a copy of the completed forms. It’s important for owners of residential units to complete both pages of the form. Make sure you also fill in the proper boxes on the 2nd page.
Also, make sure you only put the real number calculated and don’t round up any numbers. You can download the Notice of Rent Increase for BC Residential Units with a simple click.
Isn’t 3.7% Too Low?
Many British Columbia residential landlords thinks so. They feel 3.7% is too low due to ever escalating costs associated with owning a rental property in BC.
But in 2016 the BC rent increase was only 2.9%. So while this years increase isn’t great, at least it’s more than what we could raise last year when costs were also increasing like crazy.
Are you going to raise the rent in 2017?
Now that we know what the rent increase is we can move on to the other big question. Several new landlords and rental property investors asked if it was a good idea to raise the rent on their tenants or not? One landlord wrote:
I have some pretty good tenants right now. Sure they aren’t perfect or anything like that. They floors are a bit scratched and I had to go clean some mold they caused by not turning on the bathroom fan. The thing is they pay the rent on time and I worry if I raise the rent they might move.
It’s a good BC Landlord question.
We asked several experienced and successful Surrey landlords and the answer was a resounding “yes.” With costs rising, and the risk of damages to your rental property long term British Columbia landlords know it’s important to keep your rents high enough to cover your expenses.
In this case when these tenants do move out the landlord is likely going to have to spend a lot of money to fix the floors and clean the showers and bathtubs in the unit (much of the mold will not be visible at first glance). The amount of work will also likely lead you to be forced to have a vacant unit for at least a month.
Challenges For Surrey Landlords in 2017 (And these challenges can cost you a lot of money)
While the above landlords situation isn’t that grave, there are lots of challenges for landlords that are more threatening. For example there is a new by-law in Port Coquitlam that actually wants to hold landlords legally responsible for any illegal operations in the rental property.
While at first glance this might seem like common sense the problem is landlords cannot “control” their tenants actions. We also can’t monitor them because there are privacy rules in our province. Thirdly, landlords can press a magic button and automatically evict a tenants overnight. There is a process in place and it can take a long time to evict a tenant for something as non-payment of rent.
These types of by-laws tenant to spread quickly. If you do have a tenant who is doing something illegal in your rental you better have enough money to prepare for a long and expensive legal battle.
Bad Tenants Who Know How To Manipulate the System
While there are lots of good tenants out there who are looking for a great landlord and a great rental property, there are also what are known as “professional tenants”. One of these professional tenants is creating a nightmare situation for a Kelowna landlord.
Global news has been reporting of this landlord who rents her basement out to help cover her mortgage. This professional tenant won’t pay rent and won’t leave. The tenant also has access to the heater, furnace and the house electrical panel and has cut off the utilities to cause trouble.
It’s going to cost this landlord a lot of money to evict this tenant and also there will likely be a lot of damages. It will include requiring repairs and money needed to spend on garbage clean-up. This is why we say it’s ESSENTIAL BC landlords run a BC landlord credit check on all tenants.
Surrey Landlords Are You Going To Raise the Rent in 2017?
As we wrote many experienced and successful long-term landlords will increase the rent every year. They need to or they can’t keep up with rising costs. It’s also important to put away rent money to prepare for any challenges that come your way.
Make sure you make the right moves and join a growing network of successful Surrey landlords!