A landlord has the right to increase rent, but must follow certain guidelines set by law.
Landlords may be able to raise the rent in cases such as:
- when the residential tenancy agreement is terminated;
- in a fixed-term tenancy after six months;
- if an operational cost change justifies an increase;
- or if there is a variation in municipal taxes.
The landlord must give three months’ written notice before increasing rent and can only raise it once every 12 months.
Raising Rent in New Brunswick as a Landlord
In New Brunswick, landlords are not allowed to raise rents at will because they are bound by provincial rules around rental increases. Fortunately, landlords are allowed to increase rents in certain situations, but they must follow certain rules when increasing rent.
The landlord’s decision to raise the rent is based on section 24 of the Residential Tenancy Act. Section 24 states that a landlord has the right to increase rent if there is an eligible reason and the tenant gives notice of seven days. If there is no eligible reason, landlords are not allowed to raise rents at their discretion.
Landlords should check with the provincial government office responsible for consumer affairs, consumer and business protection, or deputy minister services to determine whether there is an eligible reason for increasing rent under section 24.
Section 24 of the act also states that landlords cannot raise rents more often than every 12 months and that tenants are not allowed to decrease rent. If a landlord’s rent increase is not in accordance with law, it may be subject to a dispute resolution process through the Residential Tenancy Branch.
When landlords do decide to increase rent, they must follow certain steps. This can be done by sending a written notice (for example, by regular mail or email) or for an increase that occurs within three months of getting a new tenancy agreement, landlords must give seven days’ notice. In this case, tenants have the right to cancel their tenancy agreement if their landlord refuses to give them proper written notice.
When Can Rent Be Increased in New Brunswick?
Under New Brunswick law, landlords are allowed to increase the rent when they want and however they want.
Many landlords will only increase the rent once every three years.
When a landlord wants to raise the rent, they typically give a tenant 30 days notice before increasing the price of their unit. The following are legal methods that a landlord may use to raise the rent in New Brunswick:
- Increase it by 1% per month if tenants have not raised it in 5 years or more;
- Increase it by 10% if tenants have raised it within 4 years;
- Slightly decrease the monthly rate but add money back based on overall property value increases each year.
Failing to give proper notice is one of the most common reasons for landlords failing to raise the rent when they want. In fact, many tenants are too scared to raise their rent hoping not to anger their landlord and lose their home.
If a tenant does not wish to agree with a landlord’s new rental price, they can apply for an above-guideline increase when raising the rent in New Brunswick.