Everyone who rents a property, especially an apartment, should anticipate rent increases each time their lease or rental agreement is up. But how much is a landlord able to increase rent by?
There are different laws for each province/territory that stipulate how much a landlord can increase rent. For more specific information, refer to the Provincial and Territorial Fact Sheets.
In a majority of jurisdictions, landlords must give their tenants 90 days notice of a rent increase. The amount of advance notice that has to be given depends entirely on the type of tenancy, whether it is week-to-week, monthly or yearly. There are some parts of Canada where rent increases only occur on the anniversary of the tenancy and four months notice must be given by the landlord.
A rent increase is not valid without proper notice stating details like how much it is going to increase by as well as when it goes into effect. If the landlord fails to give adequate notice, the tenant can refuse to pay the rent increase until proper notice has been given.
Tenants usually get a notice for an increase of rent relatively soon before the lease is set to expire. There are certain provinces that set guidelines for rent increases based on cost estimates for things like electricity, heat, taxes and improvements to the rental property.