Yukon Above-Guideline Rent Increase

The 2.6% rent index cap covers most Yukon rent increases — but a landlord who has incurred qualifying extraordinary renovation expenses or purchased a property with below-market rental units can apply to the Residential Tenancies Office for permission to exceed it. The route exists. It is formal, documented, and slower than most landlords expect.

When the Above-Index Route Applies

Under the current Residential Tenancies Act (for notices served before December 1, 2026), a landlord may apply to the RTO for an above-index increase when:

• Extraordinary expenses — unusual or unexpected renovation expenses for work required to meet minimum health, safety, and housing standards, improve security or energy efficiency, or reduce wildfire vulnerability.
• Property purchase — buying a residential property with one or more rental units rented below the rent charged for similar units in the same market.

The standard 2.6% increase is not enough to recover these costs within a reasonable timeframe, and the legislation acknowledges that with a separate application channel.

The Limits

The director may approve an additional increase of up to 3% above the annual rent index. In 2026, that means a maximum total increase of 5.6% (2.6% index + 3% above-index).

The approved above-index portion can remain in effect for a maximum of three years. After three years, the rent reverts to the standard index-only track.

The Application Process

You cannot impose an above-index increase until the director issues an order approving it. If a tenant has paid money that was not permitted under the Act, the director may order repayment or a deduction from rent.

The process:

1. Choose the correct form. The RTO provides two specific applications:
   • Application to increase rent above index after purchase of a property
   • Application to increase rent above index after renovations
2. Submit the application to the RTO with supporting evidence — receipts, contractor invoices, purchase documents, and a breakdown of how the expenditure relates to the rental unit.
3. The RTO sets the response timeline. The landlord serves a copy on each affected tenant when instructed; tenants have an opportunity to respond by the stated deadline.
4. The director considers the application and tenant responses and may issue an order approving an above-index amount (up to 3% above index for up to three years) or denying the application.
5. Only after receiving the written order can the landlord serve a notice of rent increase that includes the approved above-index amount.

Evidence That Matters

Adjudicators are looking for documented, verifiable costs directly related to the rental unit:

• Itemised contractor invoices and receipts
• Purchase agreement and settlement statement (for property acquisitions)
• Before-and-after condition documentation
• A clear link between the expenditure and the unit being increased

Verbal estimates, informal quotes, and round-number claims without supporting paperwork weaken the application substantially.

After December 1, 2026

If the tabled amendments pass and the rent cap is removed, the above-index application process becomes irrelevant for notices served on or after December 1. Landlords in the uncapped regime set the increase amount at their discretion — no RTO approval needed. The trade-off is the six-month notice period.

For any notice served before December 1, 2026, the above-index route remains the only lawful way to exceed 2.6%.

The Yukon Rent Increase Compliance Toolkit includes an above-index evidence organizer and a walkthrough of both RTO application forms.

See more Yukon guides →