Should You Increase Your Tenant’s Rent? What BC Property Owners Should Consider in 2026
For property owners, increasing rent can seem like a simple decision: if expenses are going up, shouldn’t rent go up too?
Not necessarily.
A rent increase can help offset rising costs and support the long-term performance of an investment. But what happens if your tenant decides the increase is no longer worth it?
With B.C.’s 2027 allowable rent increase set at 2.2%, down slightly from 2.3% in 2026, rent increases are once again something property owners will need to think about as they plan for the year ahead.
But the question isn’t simply “How much can I increase the rent?”
It may be more useful to ask:
“What makes the most sense for my property, my tenant,
and the current rental market?”
So, What’s Happening in the Rental Market?
The Metro Vancouver rental market looks very different from a few years ago. Rents remain high, but renters have more options. With more listings available and vacancy rates rising in several areas, tenants can be more selective about where they live and property owners may have to work a little harder to remain competitive.
According to the Liv.rent August Rent Report, rental rates vary considerably across Metro Vancouver depending on the municipality, unit size, and type of rental.
Average Rents in Metro Vancouver By Listing
Unfurnished units
1 Bedroom | 2 Bedroom | 3 Bedroom | |
Vancouver | $2289 | $3083 | $3670 |
Burnaby | $2107 | $2647 | $3242 |
Richmond | $2106 | $2760 | $3533 |
Surrey | $1748 | $2143 | $2921 |
Rental rates can vary significantly across Metro Vancouver, which is why looking at the local market matters. A rent increase that makes sense for one property may not make sense for another just a few neighbourhoods away.
“Recent platform data from Zumper and Liv.rent shows average rents dropped closer to $2,387 per month for unfurnished one-bedroom downtown units, while general current listings hovered around $2,700 back in 2023.”
The takeaway? The rental market isn’t standing still.
Vacancy Rates Tell Another Part of the Story
Rent prices are only one piece of the puzzle. Vacancy rates can give property owners another indication of how much choice tenants currently have. When more units are sitting available, renters have more opportunities to compare price, location, amenities and overall value.
According to CMHC, Vancouver’s purpose-built rental vacancy rate reached 3.7% in 2025, its highest level in more than 30 years. Vacancy rates also varied across surrounding municipalities.
2025 Purpose-Built Rental Vacancy Rates
Vancouver: 3.7%
North Burnaby: 5.6%
Southeast Burnaby: 3.6%
Richmond: 3.1%
Surrey: 4.3%
For property owners, this creates an interesting balancing act.
You want your rental income to keep pace with your costs, but you also don’t want to push a good tenant out the door.
So, is increasing the rent worth it?
The Case for Increasing Rent
There are some clear reasons why a rent increase can make sense.
1. Your Costs Aren’t Standing Still
Owning a rental property comes with plenty of expenses, and they don't necessarily stay the same year after year.
Mortgage costs, property taxes, insurance, strata fees, maintenance and unexpected repairs can all affect your monthly cash flow. A permitted rent increase can help offset some of these rising costs and keep the property's finances on track.
2. Your Rent May Have Fallen Behind the Market
Maybe your tenant has been there for several years. That’s great, but it could also mean the property's rent has gradually fallen behind comparable units in the area.
A reasonable increase can help close some of that gap without necessarily pushing the property to the top of the market. This is where knowing what similar properties are renting for becomes important.
The goal isn't necessarily to charge the maximum. It’s to understand where your property sits.
3. Small Increases Add Up Over Time
A few percentage points may not seem significant month to month, but rental income is one of the biggest contributors to an investment property's long-term performance.
Keeping rental income aligned with allowable increases and changing expenses can help support cash flow over time.
But There’s Another Side to the Equation
Increasing rent can make financial sense on paper.
But what happens when your tenant says, “For that price, I can find somewhere else”?
That’s where the potential downside of a rent increase comes in.
1. You Could Lose a Great Tenant
Not all tenants are equal. A tenant who pays on time, looks after the property, communicates well and rarely causes issues has real value to a property owner.
If a larger rent increase causes that tenant to leave, the additional monthly income may not be worth the cost and hassle of finding someone new.
Sometimes, stability has value too.
2. A Few Weeks of Vacancy Can Change the Math
Let’s say you increase the rent by $100 per month.
That sounds like a win. Over a full year, it means an additional $1,200 in rental income.
But now imagine the tenant moves out and the property sits vacant for several weeks.
Suddenly, that extra $1,200 starts looking very different.
There could also be additional costs for:
Cleaning and repairs
Advertising
Showings
Tenant screening
Property management
Utilities during vacancy
Potential leasing incentives
The financial impact of turnover can add up quickly.
3. Tenants Have More Choices
This is where the current rental market becomes especially important.
If a tenant is already paying close to market value and can find a similar unit for the same price or less, a rent increase may give them a reason to start looking.
For property owners, the question becomes less about “Can I increase the rent?” and more about “How competitive is my property at the new price?”
The Rent Increase Balancing Act
There isn't necessarily one right answer for every property.
For some property owners, increasing rent may be an important part of maintaining cash flow. For others, keeping a reliable tenant at a slightly lower rent may provide more value over the long term.
Pros of Increasing Rent | Cons of Increasing Rent |
Offset rising ownership costs | Potentially lose a good tenant |
Keep rent closer to current market value | Vacancy can offset additional income |
Support long-term investment returns | Higher costs from tenant turnover |
Maintain property cash flow | Potential tenant dissatisfaction |
Keep rental income aligned with rising expenses | Tenants may have more rental options |
The right decision will depend on the property, the tenant, the current rent and what's happening in the surrounding rental market.
It’s Not Always About Getting the Highest Rent
For property owners, it can be tempting to look at a comparable listing charging $200 more and think, “I should be charging that too.”
But a listing price doesn't tell the whole story.
A property sitting vacant for a month, requiring repairs and needing to be advertised again can cost considerably more than the difference between your current rent and a slightly higher one.
On the other hand, leaving a property significantly below market for years may mean missing out on rental income that could help cover increasing ownership costs.
It’s about finding the balance.
Before making a decision, consider:
What are comparable properties renting for today?
How long has your tenant been in the property?
Is the tenant reliable and taking good care of the unit?
What are your current ownership and operating costs?
How much rental competition is there in your area?
What would vacancy and tenant turnover realistically cost?
The Bottom Line
A rent increase can be a smart move, but the highest possible rent isn't always the most profitable one.
In a changing rental market, retaining a great tenant can be just as valuable as increasing monthly income.
For property owners, the goal should be to find a rent that reflects the property's value, remains competitive in the current market and supports the long-term performance of the investment.
Because sometimes, the right rent isn't the highest rent. It’s the rent that makes sense.
This article is for general informational purposes only and does not constitute legal advice. Property owners should refer to the Residential Tenancy Branch for current rules regarding rent increases in B.C.
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