Becoming a Landlord in BC: Renting Out Your Home or Condo

Renting out your home or condo, whether you are moving, buying your next place or keeping your first one as an investment, makes you a landlord under BC's Residential Tenancy Act. Here are the rules that matter from day one, plus the insurance, strata and tax steps to take before your tenant moves in.

The short version

When the Residential Tenancy Act applies

The Act covers most rentals of a house, condo or self-contained suite as someone's home. It doesn't apply when the tenant shares a kitchen or bathroom with you as the owner, or to vacation or travel accommodation.

Some cities also license rentals. Vancouver, for example, requires a long-term rental business licence to rent out a house, suite or laneway home for 90 days or more at a time. Check with your city before you advertise, and ask your lender whether renting the home affects your mortgage.

The tenancy agreement

• In writing, every time. A landlord must prepare a written agreement for every tenancy and give the tenant a copy within 21 days. The Residential Tenancy Branch's form, RTB-1, includes the standard terms that every agreement must contain. Extra terms the tenant agrees to are generally binding if they don't conflict with the Act.
• Fixed term or month to month. At the end of a fixed term, the tenancy generally becomes month to month. A clause requiring the tenant to move out at the end of the term is allowed only in limited cases, such as when you or a close family member plan to move in.
• No application fees. You can't charge anything for accepting or processing an application, checking an applicant or accepting a tenant.

Deposits and condition inspections

• Limits. A security deposit can be no more than half of one month's rent, and a pet damage deposit no more than another half, however many pets there are. On an example rent of $2,400 a month, each could be up to $1,200. You can ask for the security deposit only when you enter into the agreement.
• Interest. Deposits earn interest at a rate set for each year. For 2026, the rate is 0%.
• Move-in inspection. Inspect the home with your tenant when they get possession, after offering at least two opportunities, the second on the approved form. Complete and sign a condition inspection report together and give the tenant a copy within 7 days.
• Move-out inspection. Inspect again at the end of the tenancy, and give the tenant a copy of the report within 15 days of the later of the inspection and receiving their forwarding address in writing.
• Why it matters. If you skip the inspections or the reports, you lose the right to claim against the deposits for damage. A tenant who doesn't take part in either of the two opportunities you offer loses the right to have them returned.
• Returning deposits. Within 15 days after the tenancy ends or you receive the forwarding address in writing, whichever is later, return the deposits with interest or apply for dispute resolution, or you can be ordered to pay double. You can keep part only with the tenant's written agreement or a Residential Tenancy Branch order.

A late rent or returned cheque fee of up to $25 is allowed only if the agreement provides for it, and you can pass on a move-in or move-out fee your strata charges.

Rent increases

• Once every 12 months. The 12 months count from when the rent was set at the start of the tenancy or last legally increased.
• Three full months' notice. Give notice at least three months before the increase takes effect, on the approved form, RTB-7.
• The limit. It follows inflation (the 12-month average change in BC's Consumer Price Index to July) and depends on when an increase takes effect. For increases in 2026 it is 2.3%, up to $55.20 a month on the example rent. A larger increase needs the tenant's written agreement or a Residential Tenancy Branch order.

Repairs and entry

• Your job. Keep the home in a state of decoration and repair that meets health, safety and housing standards and makes it suitable for a tenant, given its age, character and location.
• The tenant's job. Keep the home reasonably clean, and repair damage they cause through their actions or neglect, but not reasonable wear and tear.
• Emergencies. Post, or give the tenant in writing, the name and phone number of someone to call for emergency repairs, such as major leaks, blocked sewer pipes, heating, locks or electrical problems. If the tenant can't reach that person after two calls and gives you reasonable time, they may have the repairs made themselves.
• Entry. Give at least 24 hours' written notice with a reasonable purpose, for entry between 8 a.m. and 9 p.m., unless the tenant agrees or there is an emergency.

Ending a tenancy

A tenancy ends only in ways the Act allows, such as a proper notice, a written agreement with your tenant or an order. A month-to-month tenant can leave on one month's notice. To move yourself or a close family member in, this is the process in force since June 18, 2025:

• Who qualifies. You, your spouse, parent or child, or your spouse's parent or child, must intend in good faith to live there.
• The notice. It must be generated through the Residential Tenancy Branch's web portal, which has been required since July 18, 2024.
• Timing. At least three months' notice, taking effect no earlier than the end of any fixed term. The tenant has 21 days to dispute it, and a month-to-month tenant can leave sooner on 10 days' written notice.
• Compensation. One month's rent, paid on or before the effective date.
• The 12-month rule. The person must move in within a reasonable time and live there for at least 12 months, or you may have to pay the former tenant 12 months' rent, $28,800 on the example rent, unless extenuating circumstances prevented it.

Insurance and strata bylaws

• Call your insurer first. The Insurance Bureau of Canada says to contact your insurer before you rent out your home, because failing to do so can void your coverage. A homeowner policy doesn't cover a tenant's belongings or liability, and a home you don't live in needs its own policy. The Insurance Bureau also suggests requiring tenant insurance and asking for proof each year.
• Strata rentals. A strata can't restrict long-term rentals, but your tenant must follow the bylaws, and the strata can fine owners and tenants who don't. Before you rent, give your tenant the current bylaws and rules and a Form K, the Notice of Tenant's Responsibilities, and give the strata the signed copy within two weeks of renting.

Taxes on rental income

• Report the rent. Rental income for the calendar year goes on Form T776 with your return.
• Expenses. You can generally deduct mortgage interest, property taxes, insurance, repairs, utilities you pay and management fees, but not the principal on your mortgage. Capital costs, such as a new fridge, are claimed over time as capital cost allowance, which can't create or increase a rental loss.
• Your principal residence. Moving out and renting the whole home generally counts as selling it at fair market value. An election under subsection 45(2), made with a signed letter attached to your return, lets you keep designating it as your principal residence for up to four years while it is rented, if you don't claim capital cost allowance. Only one home can be your principal residence for any year, so a year you claim for this home can't also be claimed for a home you move into.
• Vacancy taxes. Every owner in a taxable area still declares each year for the speculation and vacancy tax, and in Vancouver for the Empty Homes Tax too; a home rented for at least six months of the year, in tenancies of at least a month (30 consecutive days for the City's tax), is generally exempt from both.

Questions owners often ask me

How much can I ask for as a deposit in BC?

Up to half of one month's rent as a security deposit, and up to another half as a pet damage deposit. You can't charge an application fee.

How much can I raise the rent in 2026?

Up to 2.3% for increases taking effect in 2026, once every 12 months, with three full months' notice on the approved form. A larger increase needs the tenant's written agreement or a Residential Tenancy Branch order.

Can I move back into my home after renting it out?

Yes, after any fixed term. Give a landlord's use notice generated through the Province's web portal, with at least three months' notice and one month's rent as compensation. You or a close family member must then live there for at least 12 months.

Can my strata stop me from renting out my condo?

Not for long-term rentals, though it can restrict short-term rentals, and your tenant must follow the bylaws. Give your tenant the bylaws and a Form K, and give the strata the signed Form K within two weeks.

Do I lose my principal residence exemption if I rent out my home?

Not necessarily. If you rent out the whole home, an election under subsection 45(2) generally lets you keep designating it as your principal residence for up to four years, if you don't claim capital cost allowance. Talk to an accountant before you rent.

Thinking about a rental property? Read about buying a home with a suite, what strata bylaws can say about rentals and selling a tenanted home.

This article is general information, not legal or tax advice. The details come from the Residential Tenancy Act, the Residential Tenancy Branch, the CRA and the Insurance Bureau of Canada and were current at the time of writing; tenancy rules change often, so check the current rules before you give a notice. For the Residential Tenancy Branch's guide, see tenancy agreements.