When this phase can be used
The landlord must already have RTB approval and have imposed a Phase 1 additional increase for the same approved capital expenditures. Phase 2 is available only where an eligible approved balance remains after the maximum amount legally permitted in Phase 1.
What to include with the notice
Check that the Phase 1 increase was implemented, the next increase satisfies the 12-month spacing rule and the Phase 2 notice is accompanied by RTB-53-P2D showing the remaining authorized balance. Include the RTB approval decision. Phase 2 cannot be used to start a second, new increase that has not been approved.
Timing, amounts and delivery
For an increase under this prescribed procedure, the landlord must give tenants at least three whole rental months' written notice, using an authorized service method and allowing for legally deemed receipt. The effective date must also respect at least 12 months since rent was established or last legally increased. The additional capital-expenditure portion is capped at 3% in a single phase and must be supported by the RTB decision and the calculation for that tenant. The accompanying RTB-53-P2D is the matching calculation sheet; serve the forms together.
Common mistakes
Assuming an RTB application is the same as approval, serving only the notice, miscalculating the authorized remainder, using a phase before the prior phase has been properly imposed, overlooking the three full months' notice, or treating the annual percentage allowance as the separate capital-expenditure percentage.
How this phase differs from the other RTB-53 forms
Phase 2 is not a second independent capital-expenditure application.
The Phase 2 notice may be relevant where an approved eligible amount remains available after the landlord has imposed the Phase 1 additional rent increase. The Province specifies that the first phase must already have been implemented.
RTB-53-P2 is the Phase 2 notice. RTB-53-P2D is the accompanying supporting detail form; the two are to be used together. A Phase 1 approval does not justify skipping the notice and information requirements for the later phase.
Review the remaining eligible amount and the prior phase notices against the actual RTB decision. The Province describes a maximum additional amount of 3% per phase and special timing rules; check the currently relevant requirements before issuing the notice.
For the authoritative phase-by-phase process, see the BC government guidance on eligible capital-expenditure rent increases.