High inflation and rising home prices have led to a rise in popularity in the rental market in the last years. Renting, however, does not keep you safe from potential increases in your monthly expenses. While you aren’t beholden to interest rates affecting your mortgage, you are still subject to a landlord. They are entitled to up your rent – but by how much?
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What Type of Rental Increases Should I Budget For?
How much a landlord can increase your rent is dependent on a number of factors. Firstly, it depends on whether your apartment is rent controlled or not. Rent control is different depending on the province. In Ontario, for example, landlords can increase rent by a maximum of 2.5% each year. However, in British Columbia, the maximum is 2%.In Alberta, there is no limit as to how much a landlord can increase rent, however rent can only be increased once every 12 months.
Are There Exceptions?
There are some exceptions to this. If the apartment or building needs to be renovated, then landlords are able to apply for increases above that percentage limit. They are also able to evict tenants if a particular unit is in need of repairs or in some cases, if the landlord or an immediate family member are going to take over tenancy.
Other exemptions do exist. For example, in Manitoba, buildings first occupied after March 7, 2005 are exempt from rent control for 20 years, as are units over $1,570 a month. It’s worth familiarizing yourself with the exemptions so you aren’t caught out in future.
How Often Can My Landlord Increase My Rent?
Regardless of whether your apartment is rent controlled or not, your landlord is only able to increase your rent once every 12 months. They are required to give you notice prior to this increase, which can be given to you any time between one and three months prior, depending on your length of tenancy and the provincial regulations.
This of course only applies to apartments currently being leased. Landlords are able to increase rents in between tenancies as high as they see fit. This is where vacancy control comes into play. This again differs from province to province. Prince Edward Island, for example, essentially ties the rent to the unit rather than the renter.
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