British Columbia Lease Agreement Guide 2026: RTA, RTB-1, Deposits, Rent Increases

In British Columbia, the Residential Tenancy Act governs almost every aspect of how a residential lease works — what you can charge as a deposit, how much you can raise rent, when you can enter the unit, and what you must do at the start and end of a tenancy. The RTB-1 Residential Tenancy Agreement isn't strictly mandatory, but it's the form the Residential Tenancy Branch publishes and it's what landlords are expected to use.

This guide walks through what every BC lease must cover, the rules around deposits (max 0.5 month rent — and yes, people get this wrong constantly), the 2026 rent-increase guideline, what you can and can't put in the addendum, and the mistakes that show up most often at RTB dispute resolution hearings. Sourced from the Residential Tenancy Act, S.B.C. 2002, c. 78 and current Residential Tenancy Branch policy guidelines.

What is the RTB-1 and is it mandatory?

Form RTB-1 (Residential Tenancy Agreement) is the British Columbia government's standard residential lease, published by the Residential Tenancy Branch. It is not strictly mandatory — landlords may use their own agreement as long as it complies with the RTA — but the RTB-1 is the form most landlords and the RTB itself reference. Using your own form is risky because the statutory terms of the Act apply automatically; anything in your agreement that contradicts the Act is unenforceable, and you don't get to "opt out" by writing it on different paper.

Download the current version directly from the BC government: rtb1.pdf. The form covers parties, rental unit, term, rent, deposits, services & facilities, and an addendum section for additional terms.

Who the BC RTA applies to (and who's exempt)

The Residential Tenancy Act applies to almost every residential tenancy in BC, including:

• Detached homes, condos, basement suites, secondary suites, and laneway houses
• Apartment buildings and townhouses
• Mobile homes where the landlord rents the manufactured home (separate Manufactured Home Park Tenancy Act for sites)
• Most rooming-house arrangements (even with shared kitchen or bathroom)

Exemptions include:

• Tenancies where the landlord lives in the unit and the tenant shares the kitchen or bathroom with them
• Hotels and "transient" accommodations under 30 days
• Care facilities and supportive housing
• Most non-profit co-ops (governed by their own legislation)
• Commercial tenancies

Section-by-section walkthrough of the RTB-1

Tenants and the address for service

List every adult tenant. Each one is jointly and severally liable for rent and damage. Provide the landlord's address for service in BC — this is the address where the tenant (or RTB) sends notices and applications. A P.O. box doesn't satisfy the requirement; it must be a physical address where service can occur.

Rental unit

Full civic address, suite number, parking stall, storage locker. If the unit is a strata lot, the strata bylaws and rules form part of the tenancy — give the tenant a copy. The RTB has heard plenty of disputes where the tenant violated strata bylaws they were never shown.

Term — fixed or month-to-month

At the end of a fixed-term tenancy, the tenancy automatically continues as a month-to-month tenancy on the same terms unless the tenant gives proper notice or both parties agree in writing to a new fixed term. The 2017 amendments removed the landlord's ability to require the tenant to vacate at the end of the fixed term (with narrow exceptions for landlord-occupied premises and purchaser-occupancy contracts).

Rent and payment

Set the monthly rent, the day it's due, and the acceptable payment methods. The landlord can request payment by post-dated cheque or PAD only if the tenant agrees; if the tenant prefers to pay by e-Transfer or cash, that's their right. The landlord must give a written receipt for cash payments. Rent for parking and storage included in the same payment counts as "rent" — important for the deposit cap calculation below.

Security deposit and pet damage deposit

BC caps both deposits at one-half (0.5) of one month's rent each. They are separate. If the monthly rent is $2,000, the maximum security deposit is $1,000 and the maximum pet damage deposit is $1,000 — $2,000 total. The deposit must be paid into the landlord's trust (in practice, a regular account is fine; what matters is that the landlord doesn't spend it during the tenancy). The deposit must be returned within 15 days of the end of the tenancy, with interest at the rate set by the RTB, unless the tenant agrees in writing to a deduction or the landlord applies for dispute resolution within that 15-day window.

Services and facilities

For each service (heat, water, electricity, internet, parking, laundry, etc.), check whether it is included in rent or not. Unlike Ontario's "who pays?" framing, BC's RTB-1 frames it as "is this included in the rent or not?" If you mark internet as included and later try to charge separately for it, that's a rent increase and must follow the rules below.

Pets, smoking, and other rules

Unlike Ontario, no-pet clauses are enforceable in BC. You can require a pet damage deposit (up to 0.5 month rent) and impose reasonable restrictions on type, size, or number. Same with smoking — no-smoking terms (including cannabis) are enforceable and breach can support a Notice to End Tenancy for cause.

Addendum / additional terms

This is where landlords typically get into trouble. Terms that contradict the RTA are void, but the rest of the agreement stands. Common void-but-still-stuck-in-leases items: requiring the tenant to do all repairs, charging late fees beyond what the regulation allows, requiring 60 days' move-out notice (the Act says 30 from the tenant), or banning overnight guests.

Rent increases in BC

BC's allowable rent increase for 2026 is 3.5%. The cap is set annually by the Minister and is usually pegged to BC CPI. Rules:

• Three months' written notice on the RTB-7 form is required before any increase.
• Rent can be increased only once every 12 months from the start of the tenancy or the last increase.
• An "above-guideline" increase requires the landlord to apply to the RTB (e.g., for capital expenditures or operating cost increases). Approval is not automatic.
• A clause in the lease pre-authorizing a percentage above the guideline is unenforceable without RTB approval.
• Tenancies that began before December 31, 2017 may have grandfathered terms in some circumstances; check with a paralegal.

Clauses BC landlords add that don't actually work

See our dedicated page on unenforceable BC lease clauses for the full list with citations. Here's the short version:

Common BC RTB dispute mistakes

Missing or rushed condition inspection

The RTA requires a condition inspection at move-in and again at move-out, with the tenant present (or offered two reasonable opportunities). If the landlord doesn't offer the inspection, the landlord loses the right to claim against the security deposit for damage. Doing it sloppily — no signatures, no photos — is almost as bad. The RTB has a specific form (RTB-27) for the report.

Holding the deposit past 15 days

If you don't return the deposit within 15 days of the tenancy ending (and the tenant providing a forwarding address in writing) and you haven't applied for dispute resolution to retain it, the tenant is entitled to double the deposit amount at the RTB. This is one of the most common landlord losses.

Entering without notice

The landlord can enter only with the tenant's permission, in emergency, or with 24 hours' written notice between 8 a.m. and 9 p.m. stating the purpose. "I needed to check something" doesn't qualify; the notice has to be in writing and reasonable.

Using the wrong notice to end tenancy

There are different RTB forms for different grounds: 10 Day Notice (unpaid rent / utilities), 1 Month Notice (cause), 2 Month Notice (landlord's use), 4 Month Notice (demolition / major renovation), 12 Month Notice (conversion of stock cooperative). Using the wrong form, or computing the effective date wrong, gets the notice quashed.

"Renovictions" without compensation

For 2-Month and 4-Month notices, the tenant is entitled to one month's compensation (waived rent for the last month). For landlord's-use notices, the landlord or close family member must actually occupy the unit for at least 6 months — failing to do so entitles the tenant to 12 months' rent in damages.

What happens if you don't use the RTB-1?

Nothing automatically. The tenancy is still valid and the statutory terms of the RTA still apply. The risk is that your private agreement may contain terms that contradict the Act (and are thus void), and you may not cover everything the RTB-1 covers (e.g., the parties' addresses for service). In a dispute, the RTB will look at the actual agreement plus the statutory floor; you don't get to argue your tenant agreed to less than what the Act guarantees.

Electronic signatures and digital delivery

Electronic signatures are valid in BC under the Electronic Transactions Act. The RTB accepts e-signed leases as evidence at dispute resolution. Best practices:

• Capture IP, timestamp, and email confirmation for each signer.
• Produce a single signed PDF; don't rely on a SaaS login as the only copy.
• Send the signed copy to the tenant promptly — the Act requires you to provide a copy within 21 days of signing.

Frequently asked questions

How much can I charge for a security deposit in BC?

Maximum 0.5 of one month's rent. Pet damage deposit is separate, also 0.5 month. Anything above either cap is unenforceable and the tenant can recover the excess.

Can I charge a non-refundable cleaning fee?

No. The RTA only permits the security deposit and pet damage deposit. Move-out cleaning is either part of the tenant's obligation (return the unit reasonably clean) or, if not done, a claim against the deposit at the RTB.

Can I refuse to rent to people with pets?

Generally yes, but be careful about service animals — refusing a tenant with a certified guide or service dog on the basis of "no pets" violates the BC Human Rights Code. Pet damage deposit is permitted up to 0.5 month rent.

How much notice do I need to give for a rent increase?

Three months' written notice on the RTB-7 form, and only once every 12 months. The 2026 allowable amount is 3.5%.

Can I end the tenancy at the end of the fixed term?

No, not automatically. The tenancy continues month-to-month after the fixed term ends. The landlord can only end the tenancy for reasons allowed by the Act using the prescribed notice (cause, unpaid rent, landlord's own use, etc.). The exception is for tenancies in the landlord's principal residence with shared facilities.

How long do I have to return the security deposit?

Fifteen (15) days from the later of: the end of the tenancy, or receipt of the tenant's written forwarding address. Either return the deposit (with interest) or apply for dispute resolution. Holding it past 15 days without an application means the tenant can claim double the deposit back at the RTB.

Can I require post-dated cheques?

Only if the tenant agrees. The tenant can withdraw consent and switch to another payment method (e.g., e-Transfer) at any time.

What is the RTB-27 condition inspection report?

The standard form for the move-in and move-out condition inspections required by the Act. The landlord must offer two reasonable opportunities, both parties should sign, and the report becomes evidence at any future damage dispute. Failure to offer at move-in costs the landlord the right to claim against the security deposit for damage.

What if my tenant has a roommate I didn't approve?

Tenants can have occupants who aren't on the lease; they remain solely responsible for the unit. Subletting and assignment require the landlord's consent, which can't be unreasonably withheld for fixed-term tenancies of 6+ months. You cannot charge a fee for considering a sublet/assignment beyond reasonable out-of-pocket costs.

Can I evict for a renovation?

Only with a 4-Month Notice to End Tenancy for Renovation or Repairs, and only if the work requires the unit to be vacant and you have all required permits. The tenant is entitled to compensation of one month's rent (or equivalent waived rent) and has the right to first refusal at the new rent. Misuse of renoviction has been a focus of recent enforcement.