Do you own a rental property in New Brunswick and plan to raise your rents in 2025? This guide will cover everything you need to know, from how much you can increase rental fees, how often you can do so, and how to notify your tenants. Learn how tenants can challenge a rent increase if they feel it’s unreasonable based on local rental market rates.
New Brunswick has no rent control legislation. That means you can increase your rent to whatever amount you deem appropriate in 2025.
However, the province has a system that allows tenants to request a phased-in rent increase if it exceeds a certain level. This level is 4.7% for the period beginning July 1, 2024 to June 30, 2025, For the previous 12 month period, the rent increase guideline was 3.6%.
Keep in mind that your tenant isn’t automatically entitled to this protection. To challenge the rental fee, they must apply with the Residential Tenancies Officer within 60 days of receiving notice of the rent increase. If approved, the Officer will order you to implement the rent increase over two to three years.
The chances of your rent increase being subject to the phase-in policy are higher if:
The New Brunswick Government website lists rules for how a phased-in rent increase will occur.
In addition to rent caps based on local market rates, there are other regulations that you must follow when raising rents in New Brunswick:
The rent increase rules above apply to both fixed-term leases and periodic leases for residential properties in New Brunswick.
These steps to implement a rent hike in New Brunswick apply to all types of leases, including those with a fixed term and those that are month-to-month or week-to-week.
While you face fewer rent increase restrictions in New Brunswick than in other provinces, you still want to consider any rate adjustments carefully. The rent fee should allow your rental property to stay profitable while being affordable for renters (tenant turnover can be costly in the long run).
Evaluate your operating expenses and be sure to account for any renovations you’ve completed, since you’ll need to recoup the money spent on improving your property over time.
Next, check out what rent fees other landlords are charging for properties similar to yours. This step is particularly crucial in New Brunswick, because rent increases in the province must be reasonable based on local market rates. If the increase is too excessive, you risk having it overturned or subject to the phase-in policy.
In New Brunswick, you must inform your tenant of a rent increase in writing before you can implement it. There’s no government-mandated form you have to use when preparing the notice, but it must contain the following information:
It’s also worth including an explanation for the rent increase, as it’ll help your tenants understand why you’re asking them to pay a higher fee.
In New Brunswick, you give your tenant at least six months’ notice before the new rental rate takes effect.
If your tenant doesn’t receive the notice before the six-month deadline expires, they can dispute the rent increase by filing a tenant application for assistance with the Residential Tenancies Tribunal.
A tenant can treat a rent increase notice as a lease termination, in which case, the tenancy will end on the day immediately before the new rent fee applies. In this scenario, they must give you one months’ written notice of their decision to move out (one week’s notice if they pay rent weekly).
If your tenant refuses to pay the new fee, deems it to be unreasonable, or notes that you failed to give them proper notice, you can request help from the Residential Tenancies Tribunal to reach a solution.
To begin the dispute resolution process, file an application and send it to the Tenant and Landlord Relations Office by email, fax, or in person at a Service New Brunswick office near you.
The Residential Tenancies Tribunal will send you a confirmation within one business day of receiving your application. The Tenancies Officer will investigate and attempt to mediate the dispute between you and your tenant. If no resolution is reached, the Officer will make a final judgment that’s legally binding for both parties.
Compared to other provinces, New Brunswick’s rent control regulations are far more relaxed. However, there are still rules you need to observe to avoid legal repercussions and conflict with tenants.
Tenants can request to have their rent increase phased in if it’s higher than 4.7%, which is the current threshold set by the province. Remember to give your tenant at least three months’ written notice before increasing their rent fee. And never raise the price more than once every 12 months.
For more information about New Brunswick’s rent increase guidelines, visit the New Brunswick Government website.