How to set up a rental property in British Columbia

Step 1: Written lease

• No mandatory lease form in British Columbia, but a written lease is strongly recommended.
• British Columbia legislation terms apply to any written or verbal tenancy regardless.
• Optional standard form: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/starting-a-tenancy/tenancy-agreements
• Both parties sign and keep a copy.

Step 2: Landlord insurance

• Get a rental-dwelling policy (NOT a homeowner policy) before the tenancy starts.
• Homeowner policies typically exclude rental income and tenant-caused damage.
• Consider requiring tenant liability insurance as a lease term.

Step 3: Municipal licensing

• No provincial landlord licence required in British Columbia.
• Check with your city or municipality: some require a rental or business licence.

Step 4: Tenant screening

• Run a credit check and reference check with written consent from the tenant.
• Handle personal information per privacy law (PIPEDA or provincial equivalent).
• Human rights law applies: you may not discriminate on protected grounds.

Step 6: Security deposit

• Maximum: Security deposit: max 1/2 month's rent. Pet damage deposit (if applicable): a separate additional max 1/2 month's rent.
• Interest: 2026 interest rate = 0% (confirmed). Verify the current rate at gov.bc.ca before each tenancy.
• Return deadline: Within 15 days after tenancy ends (30 days if no condition inspection was completed).
• Security deposit max 1/2 month's rent; separate pet damage deposit also max 1/2 month. Must be returned within 15 days (or 30 days if no inspection done).

Step 7: Rent increases & notice rules

• Notice required: 3 months' written notice before effective date
• Annual increases capped at the BC Rent Increase Guideline. Takes effect 12 months after tenancy starts or after the last increase. Above-guideline increases: BC landlords can apply to the Residential Tenancy Branch (RTB) for an above-guideline increase if they have had significant capital expenditures or extraordinary operating cost increases. The RTB application form DR2 is available at gov.bc.ca/landlordtenant.
• Residential Tenancy Branch: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies

Step 8: Records & receipts

• Complete the RTB-27 Condition Inspection Report at move-in and move-out with the tenant present to preserve your right to claim from the deposit.
• Keep: signed lease, deposit receipt, condition report(s), rent payment records, all correspondence.
• Dispute body: Residential Tenancy Branch, https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies