New Brunswick Rent Increase Step-by-Step Process for Landlords

The Seven Steps to a Lawful Rent Increase

Most rent increase disputes in New Brunswick trace back to a missed step, not a misunderstood rule. The rules themselves are clear: 3% cap, a default frequency limit, six months' notice, separate document. The execution is where landlords stumble. Here is the process from start to finish.

Step 1: Verify Tenancy Coverage

Confirm your property falls under the Residential Tenancies Act (R.S.N.B. 1975, c. R-10.2). The Act covers apartments, houses, rooms in boarding houses, mobile home sites, and oral tenancies. It does not cover commercial leases or member-occupied housing co-operatives under Section 29.1(3).

If a Standard Form of Lease applies to your tenancy — even if you never signed a written one — you are covered.

Step 2: Check the 12-Month Lockout

Under Section 11.1(2.01) of the Act, unless the landlord and tenant agree otherwise in writing, rent cannot be increased during the first consecutive 12-month period of the tenancy agreement, and there can be no more than one increase in any other consecutive 12-month period.

Mobile home site rent increases follow the separate conditions in Section 25.4.

Count from the date the tenant moved in (for the first increase) or from the effective date of the last increase (for subsequent ones). A property sale, management change, or lease renewal with the same tenant does not reset this clock.

Step 3: Calculate the Increase

The statutory cap is 3.0% through December 31, 2027. Multiply the current monthly rent by 1.03 to find the maximum lawful rent.

Round to the nearest cent. If you need more than 3% for capital renovation costs, you must apply for above-cap approval (up to 9%) before serving notice.

Step 4: Draft the Notice as a Separate Document

Under Section 11.1(2)(b), the rent increase notice must be a standalone document — not embedded in a lease renewal, combined with a receipt, or attached to a maintenance update. If a tenant challenges a combined notice, the Residential Tenancies Officer must set it aside.

The notice must include:

• Full legal name of the tenant
• Property address and unit number
• Current monthly rent
• Proposed new monthly rent
• Exact effective date of the increase
• Date of the notice and landlord's signature

Step 5: Calculate the Effective Date

For notice periods expressed in months, the Act treats notice as sufficiently served on the first day of the first month in the notice period. A notice served mid-month therefore does not count that partial month.

Example: You serve the notice on January 15. The six-month clock starts February 1. Six full months: February, March, April, May, June, July. The earliest lawful effective date is August 1.

Use the rent increase calculator to work out your specific dates.

Step 6: Serve the Notice and Log Proof

Permitted delivery methods:

• Personal delivery — hand it directly to the tenant (effective immediately)
• Ordinary mail to the tenant at the premises — deemed served on the third day after mailing
• Electronic transmission to the tenant's electronic address given in the lease — deemed served on the date sent

Whichever method you use, record the date, time, method, and any tracking details in a service log. If a tenant files a challenge, proving you served properly is your responsibility.

Step 7: Monitor the 60-Day Review Window

After receiving a standard rent increase notice, the tenant has 60 days to file an Application for Assistance with the Tenant and Landlord Relations Office. A mobile home site tenant has 15 days to apply for review under Section 25.4(3). There is no filing fee for the tenant application.

During this window, keep your compliance file ready: the signed lease, rent payment history, a copy of the notice, proof of delivery, and any above-cap approval documents. If no challenge is filed within 60 days, the increase takes effect on the stated date.

If a challenge is filed, a Residential Tenancies Officer investigates and can set aside a notice where the statutory conditions are met. An unapproved notice above 3% is deemed to be a 3% notice under Section 11.12(2); the officer may also order reimbursement of any overpaid rent. Read more about the tenant challenge process.

The Complete Toolkit

The Rent Increases in New Brunswick guide packages this entire workflow into a printable compliance system with calculation worksheets, a timeline planner, a service delivery log, and a tenant review preparation roadmap.

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