1. The Problem: “Casual” Collection Kills Cash Flow
In BC, rent collection is not just a business habit — it’s a compliance system. When landlords accept late rent repeatedly, accept cash without receipts, or “increase rent by text,” they create legal weaknesses that can destroy enforcement options at the RTB.
The most expensive mistake is inconsistency: if you repeatedly accept late rent without using the proper notice process, you may undermine your ability to enforce the due date later.
What “good” looks like in 2026
- Predictable: one due date, one method, one process
- Traceable: bank-to-bank record, receipts, and confirmations
- Documented: texts are fine for speed, but the official record is email + proper RTB forms (served correctly)
2. Mechanism: Set Expectations + Use Traceable Methods
2.1 “Zero Ambiguity” Payment Standard
Your tenancy agreement (Module 7) sets the rule. Your job now is to enforce it consistently. In BC, rent is due on the agreed date (often the 1st). There is no legal “grace period” requirement — rent is late once it is not paid when due.
2.2 Recommended Payment Methods (Ranked)
| Method | Why it’s strong | Key compliance notes |
|---|---|---|
| Pre-Authorized Debit (PAD) | Best automation + least admin | Use a separate PAD agreement / written authorization; keep records |
| Interac e-Transfer (Auto-Deposit) | Fast + traceable for small landlords | Use Auto-Deposit to prevent password games; define memo format (Unit + Month) |
| Cheque | Traceable | NSF risk; define NSF fee terms in agreement (limits apply) |
| Cash | High risk + high admin | If you accept cash, you must provide a receipt |
If cash happens: issue a receipt immediately and keep a copy (photo/PDF). If you can’t run receipts reliably, don’t accept cash.
3. Protocol: Handling Late Rent (Day-by-Day)
3.1 Day 2 (Morning): Immediate Friendly Reminder
If rent is not received by the due date, contact the tenant promptly and calmly. This is not the eviction step — it’s the “close the loop” step. Your goal is fast correction and documented communication.
3.2 Late Fee (Legal cap: $25)
You may charge a late fee only if it’s written in the tenancy agreement and it does not exceed $25. Anything above the cap is unenforceable, and a “daily late fee” clause is risky.
A late fee clause that breaks the rule can become “zero late fee” in practice — not “reduced late fee.”
3.3 Day 2–4: Serve RTB-30 if Not Paid
If rent remains unpaid, the correct tool is the 10 Day Notice to End Tenancy for Unpaid Rent or Utilities (RTB-30). The tenant has 5 days after receiving it to pay in full (which cancels the notice) or dispute it.
Operational standard: If unpaid by Day 2 or Day 3, serve RTB-30. You can still accept payment (and cancel the notice) — but you keep your process consistent.
3.4 “Repeated Late Rent” Pattern
If a tenant pays late repeatedly (commonly tracked as “three times in 12 months”), landlords often rely on the One Month Notice (RTB-33) where “repeatedly late paying rent” is the cause. Your protection is documentation: dates, amounts, and messages.
4. Rent Increases (2026 Update)
4.1 The 2026 allowable increase: 2.3%
For existing tenants, the 2026 maximum allowable rent increase is 2.3%. This applies even if your costs rise faster than the cap.
Math example:
Current rent: $2,000.00
Max increase (2.3%): $46.00
New rent: $2,046.00
Not allowed: “Rounding up” to $2,050.00.
Current rent: $2,000.00
Max increase (2.3%): $46.00
New rent: $2,046.00
Not allowed: “Rounding up” to $2,050.00.
4.2 The only safe protocol (RTB-7 + 3 full months)
- Form: Use RTB-7 (Notice of Rent Increase)
- Timing: Give at least 3 full months notice
- Frequency: Only once per 12 months (based on start date or last legal increase)
Calendar tip: To increase rent effective July 1, serve the RTB-7 on or before March 31.
5. Communication: The “Paper Trail” Policy
5.1 Your channel rules
- Routine: Email (timestamped record)
- Urgent: Text/phone → follow-up email (“As discussed…”)
- Official notices: Serve using recognized methods; email only if the tenant has provided an email address for service (RTB-51 or equivalent written consent)
The best landlords write like auditors: short, factual, and consistent. Keep emotions out; keep dates in.
5.2 The minimum record set (what you keep)
- Rent ledger (date due, date received, method, reference number)
- Copies of receipts (especially cash)
- Copies of notices (RTB-30, RTB-7) + proof of service
- Email thread for any payment plan or exception
6. Failure Point: The Mistakes That Cost Landlords Money
6.1 “Rounding up” the increase
Even a $1 error can render an increase invalid. Calculate to the cent and use the RTB-7 every time.
6.2 “Increase by text message”
Texting “rent is going up” is not the proper form and can be challenged. Use RTB-7 and correct notice timing.
6.3 Illegal late fees
Daily late fees, $50 fees, or admin “processing fees” for rent collection are risky. The late fee rule is narrow: written in the agreement and max $25.
If you want enforcement power later, you must behave consistently today: same due date, same process, same documentation.
7. Templates (Copy / Paste)
7.1 Day-2 Reminder (Text or Email)
Subject: Rent Payment Reminder – [Unit Address] – [Month] Hi [Tenant Name], Our records show rent for [Month] has not been received as of today ([Date]). Please send payment today via [PAD / e-Transfer / Cheque], and reply once complete. If you’ve already sent it, please share the confirmation/reference number so we can match it. Thank you, [Landlord/Agent Name] [Phone] | [Email]
7.2 RTB-30 Service Checklist (Internal)
RTB-30 (10 Day Notice) – Internal Checklist □ Confirm amount outstanding (rent and/or utilities) and due date □ Print RTB-30 (all pages) and complete accurately □ Sign the notice (required) □ Serve using a valid service method □ Record service date/time and method □ Calendar tenant 5-day deadline to pay/dispute □ If paid in full within 5 days: document “Notice cancelled” □ If not paid/disputed: prepare Order of Possession application steps
7.3 Cash Rent Receipt (Quick Form)
RENT RECEIPT (CASH) Date: ______________________ Tenant Name: ______________________ Rental Address: ______________________ Rent Month: ______________________ Amount Received (CAD): $____________________ Received by (Landlord/Agent): ______________________ Signature: ______________________
7.4 Email Service Consent Reminder (RTB-51)
Subject: Email Address for Service (RTB-51) Hi [Tenant Name], To make communication and official notices easier, BC allows email service only when an email address is provided “for service.” If you agree, please complete and return RTB-51 (Address for Service). Until then, we will serve official notices using standard delivery methods. Thank you, [Landlord/Agent Name]
8. Top 20 Common Questions: Rent Collection in BC
Q1: Can I ask for post-dated cheques?
You can request them, but don’t rely on cheques as your primary system. PAD or e-Transfer with Auto-Deposit is typically easier to track and enforce.
Q2: What is the 2026 rent increase limit?
2.3% for most residential tenancies.
Q3: Can I increase rent above 2.3%?
Only in limited scenarios (e.g., approved additional rent increase processes) — otherwise, no.
Q4: Can I serve RTB-30 if rent is one day late?
Yes — landlords may serve RTB-30 after rent is due and unpaid. The tenant still has 5 days after receiving it to pay or dispute.
Q5: Is cash allowed for rent?
Yes, but if you accept cash you must provide a receipt. Operationally, cash is the highest-risk method.
Q6: What is the maximum late fee?
$25, and only if the tenancy agreement includes a late fee term.
Q7: Can I charge “$10/day” late fees?
High risk and generally not compliant with the capped-fee framework. Keep it simple: one late fee up to $25 if allowed by your agreement.
Q8: What if a tenant pays partial rent?
Document it clearly and keep your process consistent. If you’re serving RTB-30, ensure you don’t accidentally communicate that partial payment “resets” the tenancy terms.
Q9: Can I take money from the security deposit mid-tenancy for unpaid rent?
No — deposits are dealt with at the end of the tenancy through the proper process. Use RTB notices for unpaid rent.
Q10: Do the 3 months’ notice include the month I serve the RTB-7?
No. It must be 3 full months. Example: serve by March 31 for a July 1 increase.
Q11: Can I “bank” missed rent increases from prior years?
No. You may only apply the current allowable increase when you serve a valid notice.
Q12: Can I offer a prompt-payment discount?
Yes, if structured carefully and consistently so the legal rent is clear and the discount is not used as an unlawful penalty.
Q13: What if a tenant withholds rent for repairs?
Generally, tenants must pay rent when due unless they have a legal right under the RTA to deduct. Handle repairs urgently, but don’t ignore arrears.
Q14: Can I increase rent at the end of a fixed term?
Not automatically. The 12-month rule and allowable % still apply. Use RTB-7 and correct timing.
Q15: Can I require Auto-Deposit for e-Transfers?
Operationally, it’s reasonable and reduces disputes about “password not provided.” Build it into your rent instructions.
Q16: What if the tenant is repeatedly late?
Document every late payment. Repeated lateness can support a one-month notice for cause (RTB-33) when the pattern is clear.
Q17: Can I charge an “admin fee” for collecting rent?
No. Don’t invent fees. Stick to fees permitted by regulation and written in the agreement.
Q18: What if the tenant loses their job?
You can choose to negotiate a temporary payment plan, but document it in writing and be clear it does not permanently change the due date unless both parties agree.
Q19: Can I raise rent when a new roommate moves in?
Not automatically. Any additional occupant charges must be drafted correctly and disclosed up front, and rent increase rules still apply.
Q20: Is the rent increase tied to the calendar year?
No. It’s tied to the 12-month anniversary of the last legal increase or the start of the tenancy — and the maximum % is set by the year you increase.
References & Official Sources
- BC Government — Rent increases (2026 limit: 2.3%)
https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/rent-rtb/rent-increases - BC Government — Paying rent (late fee cap: $25)
https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/rent-rtb/paying-rent - RTB-30 — 10 Day Notice to End Tenancy for Unpaid Rent or Utilities (PDF)
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/forms/rtb30.pdf - RTB-7 — Notice of Rent Increase (Residential Rental Units) (PDF)
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/forms/rtb7.pdf - RTB-51 — Address for Service (Email service consent) (PDF)
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/forms/rtb51.pdf - Residential Tenancy Act — Section 26 (Cash receipt requirement)
https://www.bclaws.gov.bc.ca/civix/document/id/consol26/consol26/00_02078_01 - Residential Tenancy Regulation — Fees (late fee and NSF cap references)
https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/10_477_2003 - TRAC — Rent increases (plain-language)
https://tenants.bc.ca/your-tenancy/rent-increases/ - TRAC — Fees (late payment fee overview)
https://tenants.bc.ca/your-tenancy/fees/
Compliance reminder: This module is designed for BC (Residential Tenancy Act). For manufactured home sites or special situations, use the correct RTB forms and rules for that tenancy type.