The amount that a landlord can increase rent in Canada varies by province and territory. In most provinces and territories, there is a rent increase guideline that limits the maximum amount that a landlord can increase rent each year. The rent increase guideline is typically set based on the Consumer Price Index (CPI), which is a measure of inflation.
Here is a summary of the rent increase guidelines for each province and territory in Canada for 2023 as an example:
| Province/Territory | Rent increase guideline (%) |
|---|---|
| Alberta | 3 |
| British Columbia | 2 |
| Manitoba | 2 |
| New Brunswick | 3.8 |
| Newfoundland and Labrador | 2.5 |
| Northwest Territories | 0 |
| Nova Scotia | 2 |
| Nunavut | 0 |
| Ontario | 2.5 |
| Prince Edward Island | 0 |
| Quebec | 3 |
| Saskatchewan | 2.5 |
| Yukon | 0 |
Important note: The rent increase guideline is the maximum amount that a landlord can increase rent. Landlords are not required to increase rent by the full amount of the guideline.
Exceptions to the rent increase guideline
There are a few exceptions to the rent increase guideline. For example, landlords may be able to increase rent more than the guideline if they have made significant improvements to the rental property. Landlords may also be able to increase rent above the guideline if they are renting out a new unit that has been built or substantially renovated since November 15, 2018.
How to dispute a rent increase
If you believe that your landlord is increasing your rent more than they are allowed, you can dispute the rent increase with the provincial or territorial rental board. The rental board will review your case and make a decision on whether the rent increase is valid.
Tips for negotiating a rent increase
If you are facing a rent increase, there are a few things you can do to try to negotiate a lower increase with your landlord. For example, you can point out any repairs or maintenance issues that need to be addressed in the rental unit. You can also offer to sign a longer lease term in exchange for a lower rent increase.
If you are unable to negotiate a lower rent increase with your landlord, you may need to consider finding a new rental unit.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.