Rent Increases

When can a Landlord increase rent?

Periodic Tenancies (such as week-to-week, month-to-month or year-to-year): The landlord has the right to increase the rent for any of these types of tenancies provided the proper amount of written notice is given to the tenant.

Long-term tenancies: Once a tenant is considered a long-term tenant under the Act, a landlord must do the following to increase the rent:

  • issue a Notice of Rent Increase that is a document separate from any other notice or receipt
  • increase the rent for each unit in the same building by the same percentage or increase the rent in relation to what is reasonably charged for comparable units in the same geographic area.

Tenants have 15 days after receiving the Notice of Rent Increase from a landlord to complete an Application for Assistance to the Residential Tenancies Tribunal to request a revision of this notice.

 

How much notice is required for a rent increase?

Type of Lease

Minimum Notice Period

Fixed-Term Lease

-The Landlord may increase the rent only if the amount and the time of the increase are specified in Section 4 A (5) of the lease or

-If permitted in Section 4 A (5) of the lease but not specified, at least three (3) months

Week-to-week lease

At least 2 months

Month-to-month lease

At least 2 months

Year to Year and Long-Term Tenancy

At least 3 months

Mobile Home Site

At least 6 months

 

How must the notice be presented?

The rent increase must be a separate document from any other notice or receipt given to the tenant by the landlord and include: the name of the tenant, the address of the premises, the amount of the increase in rent and the date when the increase is to take effect, signed by the Landlord or Agent.

 

What if a tenant does not agree with paying the increased rent amount on a periodic tenancy?

The tenant may choose to end the tenancy on the day immediately preceding the day on which the increase takes effect.  The tenant must inform the Landlord in writing of their intent to end the tenancy and include the address of the premises, dated and signed by the tenant.

 

What is a long-term tenancy?

A long-term tenancy applies to all tenancies of premises, other than mobile home sites, that have been occupied by the same tenant for five consecutive years or more.

 

How much can the Landlord increase the rent by?

The Residential Tenancies Act allows landlords to increase rent with 3 months written notice on a fixed term lease or a year to year periodic tenancy and 2 months written notice on a month to month periodic tenancy.  The Act does not restrict the rental increase amount.

 

What if a tenant in a long-term tenancy (5 years +) considers the increased rent amount to be too much in comparison to other comparable units in the same geographic area?

A tenant in a long-term tenancy served a notice of rent increase may apply to the Residential Tenancies Tribunal within 15 days of receiving their notice to have it reviewed by a Residential Tenancies Officer.

 

Why doesn’t New Brunswick have rent control in place?

Residential rental rates will continue to be set by market conditions.  A landlord who raises rates in an unreasonable manner risks losing tenants. There would be no value to implement rent control.   In addition, rent controls have been shown to lead to reluctance by landlords to invest in and maintain properties. This can reduce the number and quality of units available.   

The Residential Tenancies Act offers protections against retaliatory rent increases and there are provisions for the Tribunal to review a Notice of Rent increase for long term tenancies to ensure it complies with reasonable market values.

According to CMHC data collected from 2019, New Brunswick remains the 2nd lowest rent rate in Canada.

A review of all provinces with legislation addressing the control of rent increases demonstrates that this measure does not lead to lower rent increases.

 

What if a tenant needs help understanding a rent increase?

Tenants may at any time discuss tenancy issues with their landlord.  If they are unable to get the answers they are seeking they may request the assistance of the Residential Tenancies Tribunal to intervene on the matter by completing an Application for Assistance for a revision of a rent increase and include a copy of the notice of rent increase received.

Still have questions about rent increases or other matters relating to a residential tenancy in New Brunswick please call 1-866-762-8600 or email irent@snb.ca.