New Brunswick has introduced significant changes to rent increase rules in recent years, responding to a housing affordability crisis across the province. Unlike Ontario or British Columbia, New Brunswick didn't historically have rent control, but recent amendments now provide a framework for challenging unreasonable increases. Understanding these rules before signing a lease — or before your renewal — can make a significant difference in your housing costs. This guide covers the current legal framework, the red flags in lease terms related to rent increases, and the practical steps you can take to protect yourself.
What is a Rent Increase?
A rent increase clause in a New Brunswick residential lease governs when and by how much a landlord can raise rent during or between lease terms. Under the Residential Tenancies Act (RSNB 2011, c 209), landlords must follow specific procedures for implementing rent increases, including mandatory notice periods and, in some cases, limits on the amount of increase. The rules differ depending on whether you have a fixed-term lease or a periodic (month-to-month) tenancy.
Red flags to watch for
New Brunswick law generally does not allow rent increases during a fixed-term lease unless specifically provided for in the agreement. A clause permitting mid-term increases may be challengeable.
Landlords must provide the proper statutory notice before implementing a rent increase. A lease that shortens this period violates the Residential Tenancies Act.
New Brunswick tenants can challenge unreasonable rent increases through the Residential Tenancies Tribunal. A lease that omits or discourages this right is misleading.
Open-ended clauses that tie increases to undefined market rates give the landlord unchecked discretion to raise rent by any amount.
Some leases automatically switch to a month-to-month tenancy at an inflated rate when the fixed term expires, catching tenants off guard.
Your legal rights
Under the New Brunswick Residential Tenancies Act (RSNB 2011, c 209), landlords must provide at least two months' notice before a rent increase for month-to-month tenancies, and the increase can only take effect on the anniversary of the lease or the beginning of a new term. Recent amendments (2022) introduced a process for tenants to challenge rent increases they consider unreasonable by applying to the Residential Tenancies Tribunal. The Tribunal can order a landlord to reduce an increase if it's deemed excessive relative to the landlord's actual cost increases. During a fixed-term lease, rent cannot be increased unless the lease specifically allows it.
Questions to ask before you sign
- 1Will the rent remain fixed for the entire lease term?
- 2How much notice will I receive before any rent increase?
- 3Is there a cap or formula governing rent increases at renewal?
- 4What happens to my rent when the lease converts to month-to-month?
- 5How do I dispute a rent increase I believe is unreasonable?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.