How much can a landlord increase rent?

How much can a landlord increase rent?

In Canada, landlords can usually raise the rent once per 12-month period, but the amount they can increase it by changes annually, and it varies by province and territory. In 2023, for example, the maximum increase is 2% in British Columbia, 2.5% in Ontario and unlimited in Alberta, provided the tenant has lived there for at least a year and is provided 90 days’ written notice. In Saskatchewan, landlords can raise the rent every six months, in some cases, and the increase amount is stated in the original lease.

Find the details for your province or territory on its government website, by searching for your province’s or territory’s landlord-tenant board (it may have another name, like rental office or residential tenancies office), or by visiting the Canadian Centre for Housing Rights.

What if a landlord tries to increase the rent beyond legal limits?

If a landlord tries to raise the rent above the allowable amount, or sooner than permitted, you can file a complaint with your provincial or territorial landlord and tenant office or board. The process can be quite lengthy, taking months or even years to conclude, but with a ruling in your favour, you may be able to get a rebate on any over-payment.

What if you can’t pay the rent?

Many Canadians are struggling with financial hardship and may find themselves in a position where they can’t pay their rent, particularly if faced with a rent increase. If you fail to pay your rent in full and on time, your landlord can proceed with an eviction either immediately or after a three-day grace period, depending on your province or territory.

If you find yourself in this situation, communicate promptly with your landlord. Depending on the circumstances and your history at the premises, you might be able to negotiate an extension or apply for a rent reduction.

Can you negotiate a rent increase?

If your landlord serves you notice of a rent increase that’s within the legal limits of your province or territory, you can ask to negotiate with them, but they have no legal obligation to agree.

When can you withhold rent?

In general, there are very few scenarios in which a tenant can legally withhold rent. These vary by your home province or territory, but typically involve over-payment of your deposit or rent, or the pre-arranged reimbursement of costs.

A critical thing to note: The need for repairs or maintenance is not a legal reason to withhold rent. If you’re facing issues with your residence, you should go to your landlord-tenant board for help. If you fail to pay your rent, your landlord can apply to evict you.

If your residence is in disrepair for an extended amount of time, you may be able to apply for an abatement of rent, which is a reduction for the time the property was in disrepair. Be aware that this can be a complicated process and you might want to enlist the help of a lawyer or legal clinic.

Is a rent strike legal in Canada?

A rent strike is when a group of tenants stop paying rent in protest, usually due to proposed rent increases or poor maintenance of the premises. Rent strikes are not illegal in Canada, but that doesn’t mean there are no consequences. Just like when individuals withhold rent, rent strikers can be evicted for not making payments—and strike action may damage their credit scores, which can negatively affect them in the future.

Although landlords have the right to carry out a mass eviction in the face of collective action, they may be reluctant to do so. It could damage their reputation, and filling multiple units with new tenants involves extra effort and expense. 

There are many challenges associated with navigating the current Canadian housing market, but you’re not alone. Consult your local landlord-tenant board for a full accounting of your rights and responsibilities as a tenant.

Read more about renting:

• Renting versus home ownership: Can you be financially secure without buying?
• Can you save tax by moving into your rental property?
• How to know if a secondary suite or basement apartment is legal—and a worthwhile investment
• What is tenant insurance?
• How to afford moving out as a student or young adult

About Keph Senett

Keph Senett writes about personal finance through a community-building lens. She seeks to make clear and actionable knowledge available to everyone.