New Brunswick Rent Increases Explained

Landlords in New Brunswick are bound by provincial rules and can only increase rents in certain situations. While landlords are allowed to increase rents, they must follow certain guidelines set by law. In New Brunswick, a landlord can increase rent once per 12-month period and must provide the tenant with written notice at least six months in advance. The amount of notice required depends on the terms of the lease. The new rent amount must be within the market value for the condition and size of the unit compared to similar units in the same building or neighbourhood. If a tenant suspects that their landlord has increased the rent by more than is allowed, they can contact the Rent Control Office or the Tenant and Landlord Relations Office to request a review.

Legal requirements for raising rent

In New Brunswick, landlords have the right to increase rent but must follow certain legal guidelines. Landlords can only raise the rent in certain situations, and they must follow specific rules when doing so.

Firstly, landlords can only increase the rent once per 12-month period. They must also provide the tenant with proper written notice, which should be given separately from any other notices or receipts. The amount of notice required depends on the terms of the lease, but it is typically six months. For example, for a rent increase to start on July 1, the landlord must provide written notice no later than January 1. The notice must include the name of the tenant, the address of the rental unit, the current rent amount, the new rent amount, the date the increase will take effect, and it must be dated and signed by the landlord or their representative.

The new rent amount must be within the market value for the condition and size of the unit, compared to similar units in the same building or neighbourhood. A Residential Tenancies Officer will determine whether the new rent amount is reasonable, and they have the authority to deny or confirm the increase or distribute the increase over a period of up to three years. Factors that may influence this decision include whether the unit has had a rent increase in several years, whether there have been major renovations, and the market value in the area.

If the rent increase is up to the Consumer Price Index (CPI), it will be applied in one annual increase. The CPI is set in December of the previous year. Any increases above the CPI will be distributed over two years if the amount is below double the CPI, and over three years if the amount is more than double the CPI. For example, if the CPI is 10% but the increase is 14%, the rent will increase by 7% in the first year and 7% in the second year. If the CPI is 10% but the increase is 24%, the rent will increase by 8% each year for three years.

Landlords may be able to raise the rent in certain situations, such as when the residential tenancy agreement is terminated, in a fixed-term tenancy after six months, if operational costs change, or if there is a variation in municipal taxes. However, tenants are protected against retaliatory rent increases under the Residential Tenancies Act. If a tenant suspects that the landlord increased the rent because they filed a complaint, they can contact the Tenant and Landlord Relations Office for assistance.

How to dispute a rent increase

In New Brunswick, landlords have the right to increase rent, but they must follow certain guidelines set by law. If a tenant disagrees with a landlord's decision to increase rent, they can dispute it through the following steps:

Understand the Law

First, it is important to understand the laws and guidelines surrounding rent increases in New Brunswick. Landlords are bound by provincial rules and can only increase rents in certain situations. For example, they can raise the rent when the residential tenancy agreement is terminated, after six months in a fixed-term tenancy, if there is a change in operational costs, or if there is a variation in municipal taxes.

Review the Notice

By law, landlords must provide written notice of a rent increase. This notice must include specific details, such as the name of the tenant, the address of the rental unit, the current and new rent amounts, and the date when the increase will take effect. Tenants should carefully review this notice to ensure it complies with the legal requirements.

Compare Market Rates

To determine if the rent increase is reasonable, tenants can compare the new rent amount with similar units in the same area. If the new rent significantly exceeds the market value, tenants may have grounds for a dispute. Residential Tenancies Officers are responsible for evaluating the reasonableness of rent increases based on market conditions.

Contact the Landlord

If a tenant believes the rent increase is unfair or unjustified, they should first try to resolve the issue by contacting their landlord. It is important to communicate concerns and attempt to negotiate a mutually agreeable solution.

Request a Review

If the issue cannot be resolved directly with the landlord, tenants have the option to request a formal review through the Tenant and Landlord Relations Office. This application must be submitted within 60 days of receiving the notice of a rent increase. The Tenant and Landlord Relations Office will review the case and determine if the rent increase is acceptable given market conditions and other relevant factors.

Understand Retaliatory Rent Increases

It is important to note that tenants are protected against retaliatory rent increases. If a tenant suspects that the landlord increased the rent because they filed a complaint or exercised their legal rights, they can seek assistance from the Tenant and Landlord Relations Office, which offers protection under the Residential Tenancies Act.

The role of the Residential Tenancies Tribunal

In New Brunswick, landlords are bound by provincial rules and guidelines set by law regarding rent increases. The Residential Tenancies Tribunal plays a crucial role in ensuring fair practices and resolving disputes between landlords and tenants in such cases. Here is an overview of the role of the Residential Tenancies Tribunal:

Rent Increase Guidelines:

The Tribunal interprets and enforces the guidelines set by the Residential Tenancies Act. For instance, landlords in New Brunswick can increase rent once every 12 months and must provide written notice to tenants at least six months in advance. The rent increase must be reasonable and in line with market values for similar units in the area.

Dispute Resolution:

The Tribunal acts as a mediator and arbitrator in disputes related to rent increases. Tenants who believe their landlord's rent increase is unjustified can request a review through the Tenant and Landlord Relations Office. The Tribunal will investigate factors such as market value, previous rent increases, renovations, and comparable rent amounts in the same building.

Authority to Deny or Confirm Rent Increases:

Based on their investigation, the Residential Tenancies Officer has the authority to deny or confirm the rent increase. If confirmed, the Officer can also decide to distribute the increase over a period of 2 to 3 years, depending on various factors.

Protection for Tenants:

The Tribunal offers protection to tenants against retaliatory rent increases. If a tenant suspects that their landlord increased the rent due to a complaint or dispute, they can contact the Tenant and Landlord Relations Office for assistance. The office can review the rent increase and ensure it is in line with market conditions.

Education and Guidance:

The Residential Tenancies Tribunal provides information and guidance to both landlords and tenants on their rights and responsibilities regarding rent increases. This includes educating landlords on eligible reasons for rent increases and tenants on their options when faced with a rent increase.

Ensuring Compliance:

The Tribunal ensures that landlords follow the proper procedures when increasing rent. This includes providing adequate written notice, specifying the correct information in the notice, and adhering to the allowed frequency and amount of rent increases.

In summary, the Residential Tenancies Tribunal plays a vital role in maintaining a fair and balanced rental market in New Brunswick. It protects the rights of both landlords and tenants, ensures compliance with relevant laws, and provides a mechanism for resolving disputes related to rent increases.

The impact of market value on rent increases

Market value has a significant impact on rent increases, and this relationship is mediated by various factors, including local regulations, economic conditions, and tenant dynamics. Here is an examination of these factors and their influence on rent prices in New Brunswick:

Local Regulations

In New Brunswick, landlords must adhere to specific guidelines when raising rents. Rent increases are governed by the Residential Tenancies Act, particularly Section 24, which stipulates that landlords can increase rent once every 12 months, provided there is an eligible reason, and tenants are given seven days' notice. The provincial government determines these eligible reasons, which may include operational cost changes or variations in municipal taxes. Additionally, landlords must provide written notice of rent increases, with the amount of notice depending on the lease terms. This regulatory framework ensures that rent increases are fair and justifiable.

Economic Conditions

Economic factors, such as inflation, play a crucial role in shaping market value and, consequently, rent prices. Inflation affects the costs of building materials, maintenance, and insurance, which landlords may pass on to tenants in the form of higher rents. For instance, during periods of high inflation, landlords may be compelled to increase rents to cover their rising expenses. Conversely, in times of economic slowdown or recession, landlords may be more cautious about raising rents to retain tenants and avoid vacancies. Economic conditions also influence the demand for rental properties. When the economy is thriving, and employment opportunities are abundant, individuals tend to have more disposable income, which can lead to higher demand for rental housing and potentially drive up rent prices.

Tenant Dynamics

The behaviour and preferences of tenants also influence market value and rent increases. In a tight rental market, where demand exceeds supply, landlords may have more leverage to increase rents. Conversely, if there is a high vacancy rate or an abundance of available rental properties, tenants may have more negotiating power, potentially keeping rent prices in check. Additionally, tenant turnover rates can impact rent prices. If tenants tend to stay in their rental units for longer periods, landlords may be able to offer lower rent increases annually. On the other hand, if tenant turnover is high, landlords may be more inclined to raise rents more frequently to maximise their returns.

Market Comparisons

Market comparisons are a critical factor in determining rent increases. Residential Tenancies Officers in New Brunswick assess whether a proposed rent increase is reasonable by comparing it to similar units in the same area. If the market value in the area is well above the proposed increase, the officer may approve it. This process ensures that rent increases are aligned with the local market and prevents excessive or unjustified hikes.

Impact of Rent Control

The presence or absence of rent control measures can significantly influence market value and rent increases. In jurisdictions with rent control, such as New Brunswick, there are caps on price increases, which can help maintain affordability for tenants. While rent control can provide short-term benefits to current tenants, it may lead to reduced affordability in the long run, fuel gentrification, and create negative spillovers on surrounding neighbourhoods. Removing rent control, on the other hand, can lead to significant increases in market value and rent prices, as landlords are then able to charge market rates.

Landlord's rights and restrictions

Landlords' Rights and Restrictions in New Brunswick

In New Brunswick, landlords have certain rights and restrictions they must adhere to when operating a residential rental property. The Residential Tenancies Act and Regulation outline the rights and obligations of landlords and tenants, as well as matters relating to residential rental agreements.

Rights

Landlords in New Brunswick have the right to increase rent, but they must follow specific guidelines set by law. They may raise the rent in certain cases, such as when the residential tenancy agreement is terminated, after six months in a fixed-term tenancy, if there is a change in operational costs, or if there is a variation in municipal taxes. Landlords are also allowed to increase the rent when they want and however they want. However, many landlords choose to increase the rent only once every three years.

When increasing rent, landlords must provide proper notice, typically three months in advance, and can only raise it once every 12 months. They can do this by sending a written notice or, for an increase within three months of a new tenancy agreement, giving seven days' notice.

Restrictions

Landlords in New Brunswick are bound by provincial rules and cannot raise rents at will. They are restricted from increasing rents more often than once every 12 months, and they must provide proper notice to tenants. Additionally, landlords cannot increase rent within the first 12 months of a tenancy.

When it comes to terminating a tenancy, landlords must follow specific guidelines. For a fixed-term lease, the contract ends automatically on the specified date, and the landlord is not required to give any notice. For a month-to-month tenancy, one full rental month is required to end the agreement, while a year-to-year tenancy requires three months' notice. To terminate a long-term tenancy (five years or more), both the landlord and tenant must give one month's notice.

Landlords also have the right to enter a tenant's premises in emergency situations. However, they must provide 24 hours' notice for inspections and seven days' notice for repairs. In the last month of a lease term, landlords can enter the premises between 8 am and 8 pm to show the property to prospective tenants, excluding Sundays and holidays.

Furthermore, landlords cannot discriminate when renting out their properties. They can, however, refuse to rent to tenants with pets if there is a no-pets clause in the rental agreement. Similarly, they can include a no-smoking clause in the lease, and if violated, it could result in eviction.

Frequently asked questions