Rent Increase New Brunswick: Rules Every Landlord Needs to Know

The Four Rules That Govern Every Rent Increase

New Brunswick's Residential Tenancies Act sets four non-negotiable requirements for raising rent. Miss any one and a Residential Tenancies Officer can set the entire increase aside.

Rule 1: The 3% cap. You cannot increase rent by more than 3.0% per year without prior written approval from an officer. This cap has been in force since February 1, 2025, and runs through December 31, 2027. Going above it without approval doesn't void the notice — the increase is automatically "deemed" to be 3% — but it signals sloppy process.

Rule 2: The default 12-month frequency limit. Unless the landlord and tenant agree otherwise in writing, no increase is permitted during the first consecutive 12-month period of the tenancy agreement, and no more than one increase is permitted in any other consecutive 12-month period. A property sale does not reset the tenancy's rent history.

Rule 3: Six months' notice. You must give the tenant six full calendar months of written notice before the increase takes effect. "Full calendar months" means notice served on January 15 starts counting from February 1 — the earliest effective date would be August 1.

Rule 4: Separate document. The notice must be a standalone document. It cannot be part of a lease renewal, attached to a receipt, or combined with any other correspondence. This is the rule that catches the most landlords. Under Section 11.1(2)(b), if you can't prove the notice was a separate document, the officer must set it aside.

Step by Step: How to Raise Rent Legally

Check eligibility. For a tenancy governed by Section 11.1, check that the default 12-month frequency limit is satisfied unless the landlord and tenant agreed otherwise in writing. Mobile home site increases follow Section 25.4.

Calculate the increase. Multiply current rent by up to 3.0%. For $1,200/month, the maximum increase is $36, making the new rent $1,236. If you need more than 3%, you'll need to apply to the Tenant and Landlord Relations Office first.

Draft the notice. On a separate sheet of paper or standalone document, include: the tenant's full name, the property address and unit number, the current monthly rent, the new monthly rent, the effective date, and your signature with the date.

Count the calendar months. From the date you plan to serve the notice, count forward six full calendar months. The increase can take effect on the first day after those six months.

Serve the notice. The Act provides for personal delivery, ordinary mail to the tenant at the premises (deemed served on the third day after mailing), or electronic transmission to the electronic address given in the lease (deemed served on the date sent). If personal delivery cannot be made because the tenant is absent or evading service, Section 25(7) allows additional methods.

Keep your records. Retain a copy of the notice, proof of delivery, the lease, and a rent payment ledger for at least the duration of the tenancy. If the tenant files a review within 60 days, you'll need this documentation.

What Happens When Things Go Wrong

If the notice is defective — wrong format, short notice period, over-cap without approval, or combined with another document — a tenant can apply for review with the TLRO within 60 days for a standard tenancy or 15 days for a mobile home site. The officer can set aside the notice where the statutory conditions are met; an increase above 3% without approval is deemed to be 3% under Section 11.12(2). An officer may also order reimbursement of an overpayment.

Setting aside a notice means you restart from scratch: a new notice, a new six-month wait. On a $1,200/month unit, that's $432 in forgone increases ($36/month for 12 months, delayed by 6).

The full process, including above-cap applications, proof-of-service protocols, and tenant review procedures, is covered in our Rent Increases in New Brunswick guide.

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