Rent increases

How and when a landlord can increase rent and how much notice is required


Overview

A landlord must provide written notice to increase rent. How much notice is required depends on the terms of the lease. 


Rent Revisions Explained

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 deny, confirm, or confirm and distribute the increase over a period of 2 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.

The most common factors include:

  • If the market value in the area remains well above the proposed increased rent amount
  • If the unit in question has not had a rent increase for several years
  • If there have been major renovations to the unit
  • If one unit is well below the rent amounts paid for similar units in the same building

If, based on their investigation, the Officer decides to distribute the rent increase, the following rules apply:

  • Anything up to the Consumer Price Index (CPI) would be applied in one annual increase.  CPI is set in December of the previous year (December 2022 for rent increases to occur in 2023 for example).
  • Any increases above CPI would be distributed over 2 years if the amount is below CPI X 2. For example: if the CPI is 10%, but increase is 14%, distribute 7% 1st year, 7% 2nd year.
  • Any increases above CPI x 2 would be distributed evenly over 3 years. For example: if the CPI is 10% but the increase is 24%, it would be 1st year 8%, 2nd year 8%, 3rd year 8%.

 


How to provide notice of a rent increase

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 name of the tenant 
  • The address of the rental unit
  • The amount of the increase in rent 
  • The date when the increase is to take effect
  • Dated and signed by the landlord or agent

Additional requirements for mobile home site tenants

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.


How to provide notice of a rent increase

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 name of the tenant 
  • The address of the rental unit
  • The amount of the increase in rent 
  • The date when the increase is to take effect
  • Dated and signed by the landlord or agent

Additional requirements for mobile home site tenants

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.


Amount of notice required to increase rent

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.

Fixed-term lease

A landlord must give a proper amount of notice to increase rent. The landlord must provide written notice 3 months before the rent increase will start.

For example, for a rent increase to start on April 1, your landlord must provide written notice no later than January 1.

In the case of a fixed term tenancy, a landlord may increase the rent only if this choice has been selected in Section 4(5) of the Standard Form of Lease.

Mobile home site

For more information about the unique requirements related to mobile home sites:

Mobile home sites


How much the landlord can increase the rent

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 RTT has the authority to rule a phased-in rent increase over a period of up to three years, if contributing factors warrant it. 


How often can a landlord increase the rent

The landlord cannot increase rent within the first 12 months of a tenancy.

The rent can only be increased once every 12 months.


Protection against retaliatory rent increases

If a tenant suspects the landlord increased rent because the tenant filed a complaint against them, they may contact the Residential Tenancies Tribunal who offers protection against retaliatory rent increases under the Residential Tenancies Act


Options for tenants who receive notice of a rent increase

When a tenant receives notice of a rent increase, they have the choice of requesting a review through the Residential Tenancies Tribunal or ending their lease. If they choose to request a review, they must apply within 60 days of service of notice.

Request a review

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 Residential Tenancies Tribunal. 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. 

Any tenant who received a notice in relation to an increase in rent with an effective date on or after January 1, 2023 has 60 days as of December 16, 2022 to apply for a review even if the time for making the application had previously expired.

The Residential Tenancies Tribunal is available to help answer questions or help you with your application of a rent review by calling 1-888-762-8600, emailing  irent@snb.ca or visiting a Service New Brunswick service centre.

Ending a lease

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:

  • For a fixed-term, year-to-year, or month-to-month lease, the tenant must provide at least 1 month’s written notice before the rent increase starts.
  • For a week-to-week lease, the tenant must provide at least 1 week’s written notice before the rent increase starts.

Help understanding a rent increase

If you have questions or need help understanding a notice of a rent increase, talk to your landlord or contact the Residential Tenancies Tribunal at 1-888-762-8600 or by email irent@snb.ca.