Raising the Rent — how and when can you do it?

note with “notice of rent increase” closepinned

Raising the rent for fixed-term leases

In Alberta, if your tenants signed a fixed-term lease and you are re-renting to the same tenants whose lease has ended, you can raise the rent by any amount. But only on the new fixed-term lease. You can’t raise the rent during a fixed-term lease. You also can’t raise the rent during a fixed-term lease if you sell the property to another landlord. If the new landlord buys your property during the tenant’s fixed-term lease, they must honour the fixed-term lease. If the new landlord wants to raise the rent, they must follow the time frames stipulated in the RTA for fixed-term leases.

Raising the rent for periodic-term leases

If your tenants signed a periodic lease, after 365 days have passed since the last rent increase or since the tenant moved in, then and only then can you raise the rent.

  • Identification of the property (address)
  • New rental rate
  • Effective date
  • Date of notice
  • Landlord/agent’s name, address, phone number
  • Landlord/agent’s signature

Do you want your tenants to stay?

Write a clause into your rental lease agreement stipulating that the rental rate will increase at a rate of X% per year to accommodate inflation. Including it in your lease bypasses the need to do yearly calculations or to summon up your courage and diplomacy for the rental increase notification.

Do you want your tenants to leave?

On the other hand, if you have tenants you don’t want to keep, raising rent by a crazy amount is a method many Alberta landlords use to motivate them to leave.

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