How and when a landlord can increase rent and how much notice is required
The Residential Tenancies Act has been amended to provide a more balanced approach to phased-in rent increases.
If a Residential Tenancies Officer establishes that the new rent amount is reasonable in comparison to similar units in the same area, they have the authority to confirm, or confirm and distribute the increase over a period of two to three years. Whether or not the increase is phased in will depend on many factors and this information will be gathered during the investigation process.
A margin of no more than 1.5 percent is added when the Consumer Price Index (CPI) is lower than 5 percent, to provide a chance for landlords to slowly catch up to market rent. When CPI is higher than 5 percent, the tenants benefit by having a threshold limit that is lower than CPI for added protection in the event of a spike in inflation.
For rent increases effective on or before June 30, the CPI for the calendar year before the previous year will be used. For increases effective on or after July 1, the CPI for the previous calendar year will be applied.
CPI from 1% to 1.9%
CPI
Limit of increase
1.0%
2.5%
1.1%
2.6%
1.2%
2.7%
1.3%
2.8%
1.4%
2.9%
1.5%
3.0%
1.6%
3.1%
1.7%
3.2%
1.8%
3.3%
1.9%
3.4%
CPI from 2% to 2.9%
CPI
Limit of increase
2.0%
3.5%
2.1%
3.6%
2.2%
3.7%
2.3%
3.8%
2.4%
3.9%
2.5%
4.0%
2.6%
4.1%
2.7%
4.2%
2.8%
4.3%
2.9%
4.4%
CPI from 3% to 3.9%
CPI
Limit of increase
3.0%
4.5%
3.1%
4.5%
3.2%
4.6%
3.3%
4.6%
3.4%
4.6%
3.5%
4.6%
3.6%
4.7%
3.7%
4.7%
3.8%
4.7%
3.9%
4.7%
CPI from 4% to 4.9%
CPI
Limit of increase
4.0%
4.8%
4.1%
4.8%
4.2%
4.8%
4.3%
4.8%
4.4%
4.9%
4.5%
4.9%
4.6%
4.9%
4.7%
4.9%
4.8%
5.0%
4.9%
5.0%
CPI from 5% to 5.9%
CPI
Limit of increase
5.0%
5.0%
5.1%
5.0%
5.2%
5.1%
5.3%
5.1%
5.4%
5.2%
5.5%
5.2%
5.6%
5.2%
5.7%
5.3%
5.8%
5.3%
5.9%
5.4%
CPI from 6% to 6.9%
CPI
Limit of increase
6.0%
5.4%
6.1%
5.4%
6.2%
5.5%
6.3%
5.5%
6.4%
5.6%
6.5%
5.6%
6.6%
5.6%
6.7%
5.7%
6.8%
5.7%
6.9%
5.8%
CPI from 7% to 7.9%
CPI
Limit of increase
7.0%
5.8%
7.1%
5.8%
7.2%
5.9%
7.3%
5.9%
7.4%
6.0%
7.5%
6.0%
7.6%
6.0%
7.7%
6.1%
7.8%
6.1%
7.9%
6.2%
CPI from 8% to 8.9%
CPI
Limit of increase
8.0%
6.2%
8.1%
6.2%
8.2%
6.3%
8.3%
6.3%
8.4%
6.4%
8.5%
6.4%
8.6%
6.4%
8.7%
6.5%
8.8%
6.5%
8.9%
6.6%
CPI from 9% to 10.0%
CPI
Limit of increase
9.0%
6.6%
9.1%
6.6%
9.2%
6.7%
9.3%
6.7%
9.4%
6.8%
9.5%
6.8%
9.6%
6.8%
9.7%
6.9%
9.8%
6.9%
9.9%
7.0%
10.0%
7.0%
A landlord can increase rent once per 12-month period and must provide the tenant with the proper amount of notice in writing. The rent increase must be a separate document from any other notice or receipt given to the tenant by the landlord and include:
The landlord must increase the rent by the same percentage for each site in the mobile home community, or in the same area of the mobile home community.
A landlord must give a proper amount of notice to increase rent. The landlord must provide written notice 6 months before the rent increase will start.
For example, for a rent increase to start on July 1, your landlord must provide written notice no later than January 1.
For more information about the unique requirements related to mobile home sites:
New rent amounts must be within market value for the condition and size of the unit as compared to similar units in the same building or neighbourhood.
The TLRO has the authority to rule a phased-in rent increase over a period of up to three years, if contributing factors warrant it.
When a tenant receives notice of a rent increase, they have the choice of requesting a review through the Tenant and Landlord Relations Office or ending their lease. If they choose to request a review, they must apply within 60 days of service of notice.
Tenants may have a written notice reviewed to ensure it was served properly and that the new rent amount is acceptable given market conditions in the area. To request a review, they must apply within 60 days of receiving a notice of a rent increase by completing an application for assistance with the Tenand and Landlord Relations Office. A copy of the written notice of rent increase received from the landlord must be included in the application. There is no fee to apply.
The Tenant and Landlord Relations Office is available to help answer questions or help you with your application of a rent review by calling 1-888-762-8600, emailing [email protected] or visiting a Service New Brunswick service centre.
Should a tenant choose to end the lease, a written notice must be provided to the landlord. The written notice must include the address of the rental unit, the date and be signed by the tenant. It will take effect the day before the rent increase starts. How much notice is required depends on the lease term:
If you have questions or need help understanding a notice of a rent increase, talk to your landlord or contact the Tenant and Landlord Relations Office at 1-888-762-8600 or by email [email protected].