Is Prepaid Rent Legal in New Brunswick? Tenant Protections Explained

Worried about a landlord in New Brunswick asking for prepaid rent? You're not alone: many tenants want to know if it's legal to pay several months’ rent in advance—or if there are risks involved. This guide offers up-to-date advice for tenants about prepaid rent, your rights, and the protections available in New Brunswick.

Understanding Prepaid Rent vs. Security Deposits in New Brunswick

In New Brunswick, a security deposit is a payment collected to cover potential damages or unpaid rent at the end of your tenancy. Prepaid rent means paying rent for future months before they are due, beyond the regular monthly payment cycle.

• Security deposits are regulated by law and have strict limits.
• Prepaid rent is not the same as a deposit—it's rent paid ahead of schedule, often before moving in or for several months at once.

For more about deposits, see Understanding Rental Deposits: What Tenants Need to Know.

What the Law Says: Can Landlords Ask for Prepaid Rent?

Under the Residential Tenancies Act of New Brunswick, landlords cannot require tenants to pay more than one month's rent as a deposit, nor can they demand advance payment for future rent as a condition to rent a unit^[1].

• Landlords may only collect a security deposit up to the amount of one month's rent.
• Rent is to be paid as specified in the rental agreement (usually monthly), not months in advance.

If a landlord asks for several months of prepaid rent, this is not allowed under New Brunswick law.

Protections for Tenants: What Happens If a Landlord Insists?

Tenants are protected against requests for excessive deposits or prepaid rent. The Residential Tenancies Tribunal oversees all landlord-tenant matters in the province.

• If a landlord demands or collects prepaid rent beyond what is legally permitted, you can file a complaint with the Tribunal.
• Landlords who break the law may be ordered to return the extra funds.
• If you are unsure how much to pay or what is required, contact the Tribunal before signing or paying anything.

Key Official Forms for Tenants

• Form 1 – Application to the Residential Tenancies Tribunal: Use this form if you need to file a complaint or seek an order from the Tribunal (such as getting a deposit improperly held by a landlord). It’s available here.
  Example: If your landlord refuses to return a prepaid amount not allowed by law, file using Form 1 and include all evidence (emails, receipts).
• Form 3 – Notice of Complaint: For reporting violations of rental laws like excess deposits or unexpected charges. Find Form 3 on the official NB Tribunal site.
  Example: If you believe a landlord is routinely demanding illegal prepaid rent from tenants, file Form 3 to alert the Tribunal.

Tenant Rights and Responsibilities: Stay Informed

It’s important for both tenants and landlords to know their legal responsibilities. The Tenant Rights and Landlord Rights in New Brunswick page outlines key local rules, including how rent can be paid and the process for dealing with disputes.

Once your rental agreement is signed, it’s helpful to review Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips so you know what to expect throughout your tenancy.

Action Steps if You’re Asked for Illegal Prepaid Rent

• Politely inform your landlord that collecting prepaid rent beyond one month’s security deposit is not allowed in New Brunswick.
• If refused or pressured, collect evidence: written requests, emails, payment receipts.
• File a complaint with the Residential Tenancies Tribunal of New Brunswick using Form 1 or Form 3.
• Contact tenant support organizations if you need guidance before or after submitting your complaint.

FAQ: Tenant Questions About Prepaid Rent

1. Can a landlord in New Brunswick ask me for more than first and last month's rent in advance?
   No. Landlords cannot collect more than a security deposit (up to one month's rent) by law. Demanding more is not permitted.
2. What should I do if I already paid illegal prepaid rent?
   Keep all records and receipts. Contact the Residential Tenancies Tribunal, and file a complaint using Form 1 to ask for your money back.
3. Is it legal to pay rent early if I choose?
   You may pay rent ahead of schedule by your own choice, but a landlord cannot require or demand advance payments for multiple months as a condition of renting.
4. Who do I contact if a landlord won’t return illegal prepaid rent?
   Contact the Residential Tenancies Tribunal of New Brunswick. They handle complaints and can order landlords to return improper payments.

Key Takeaways for Tenants

• Prepaid rent beyond the legal security deposit is not allowed—never pay more than legally required.
• Stay informed and document all payments; get receipts and keep written correspondence.
• The Residential Tenancies Tribunal is your resource for up-to-date forms, complaints, and tenant protections.

Need Help? Resources for Tenants

• Residential Tenancies Tribunal of New Brunswick (official contact for tenant complaints and forms)
• Public Legal Education and Information Service of New Brunswick (PLEIS-NB) – tenant guides and legal info
• Find rental homes safely: Browse apartments for rent in Canada

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1. [1] See the Residential Tenancies Act, New Brunswick

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