In short, there is not limit how much rent landlords can increase in Alberta at the time of renewal. Landlords can determine what is appropriate rent for their property as per the market. Hence rent increase by landlords in Alberta is based on market demand and supply forces to determine the fair rent for their rental properties.
Alberta Rental Market
The demand for house rentals in Calgary or apartments for rent in Edmonton has been steadily firming up as sizable inventory of new rental houses and apartments have quickly disappeared since earlier this year due to strong demand for single family and multi family rental homes.
So if you are a renter renting an apartment in Alberta currently, you must be aware of the rental laws in the province. These tenant and landlord tenancy laws describe the rights and responsibilities of both tenants and landlords. Some of that includes when and how much rent in percentage landlords can increase legally in Alberta.
Before we dive deep in to the core question of when and how much rent landlords can increase in percentage in Alberta, you should first know that rent increases by landlords depend on whether the province has implemented rent controls or not.
In Alberta there are no controls on the amount of rent that landlords can increase. But the rent can only be increased if it meets certain conditions. These conditions depend on type of rental agreement such as period tenancy or fixed term tenancy. These have been described in details below.
For example Ontario has rent controls while Alberta does not. Or has left it to the demand and supply forces in the housing and local rental markets. (Check how much it costs to live in Canada by cities!) A province that has rent controls such as Ontario, Landlord has to follow the set annual rent increase rate.
Tenant and landlord rental laws in Alberta
Landlords can increase the rent by an amount they determine is appropriate as per the market. So rent increase by percentage by landlords in Alberta is really based on market demand and supply forces to determine the fair rent for their rental properties.
Thing to note here is that the landlord must provide tenants notice of rent increases for the rental property. As per the tenancy rules rent increase must often wait a minimum period between rent increases. To simplify with example, if a landlord wishes to increase rent above the allowable government deadline or what is a fair rent as per the market, they must apply for approval before increasing the property rent.
Alternatively, the tenant can file complaints against the unfair rent increase as per the residential tenancy act of Alberta applicable for both tenants and landlords.
Rent increase notices in Alberta
For most independent landlords, their residential rental property isn't just a big financial investment for them but for many, it may also be critical source of income. Rent increase laws help landlords in Alberta offset the rising costs of building maintenance, and ensure tenants’ rental homes are safe, clean and in good living condition.
Please note for existing tenancies where an existing tenant after receiving a proper notice of rent increase from a landlord does not give a notice of termination to landlord, the tenant is deemed to have accepted the rent increase.
It is vitally important that these rent increases by landlords in Alberta are in compliance with the tenant and landlord tenancy acts of Alberta. As rent increase rules for Rental property are governed by the Residential Tenancies Act. Lets find out the key aspects of some dos and don’t regarding rent increases in Alberta for savvy landlords;
For Periodic Tenancies (With no tenancy end date)
Fixed Term Tenancies (With fixed tenancy end date)
For a rental property with fixed term tenancy, as per rules there is no requirement under the Alberta Residential Tenancies Act for the rental property landlord to give written notice of a rent increase.
However, it is a very good idea in our view that rental property landlord to let the tenant know of the increase ahead of time. While a notice is not required, there are rules that a rental property landlord must follow to increase the rent during a fixed term tenancy. These are;
Frequently Asked Questions (FAQ) About Renting in Alberta
So how much rent can a landlord increase in Alberta?
In Alberta there are no controls on the amount of rent that landlords can increase. But the rent can only be increased if there has not been a rent increase within the previous 12 months or since the start of the tenancy, whichever is later.
However, if a landlord charges illegal rent from tenant, he may be able to get a rebate by applying to their provincial or territorial Landlord and Tenant office or Board. This includes instances where the landlord charges significantly more than the maximum amount or raises the rent more often than what is allowable by landlord and tenant laws.
1) Can my landlord increase my rent anytime in Alberta?
Contrary to common myth the landlord and tenant tenancy rules stipulates when and how the landlords can increase rent for their apartment or house rentals in Alberta. And as above the landlords have to follow these landlord and tenant laws to legally operate their rental units.
2) Is there a rent control in Alberta?
While there is no rent control in Alberta however still there are landlord and tenant laws or rules that govern when and how landlords can increase rent of their residential rental property. It means the landlord of rental house or rental apartments in Alberta can increase rent of their rental properties as per the feasible 'market rates'.
However there are landlord and tenant tenancy laws that stipulate landlords to serve the tenants at least 90 days of notice with clearly describing the rent increase. Landlords also have to ensure that they follow the applicable tenancy act laws meant for landlord and tenant as per the fixed term rental or periodic rental terms.
3) Can my landlord increase the rent every year in Alberta?
If you are on a yearly lease the landlords in Alberta can increase rent on their apartment or house rentals every 12 month to ensure it is in line with applicable market rent. As noted above understand that rent increases as per governing rules help a landlord offset the rising costs of building maintenance, and ensure tenants’ rental homes are safe, clean and in good living condition.
However they must serve the tenants at least 90 days of notice with clearly describing the rent increase. More importantly, please also note that residential rental property rent cannot be increased on a running lease that has not completed or where the last rent increase was less than 12 months. (In case the lease period has been less than 12 months).
4) Can tenant refuse to pay a rent increase?
Unfortunately, unless a rent increase is illegal, landlord can have the tenants evict for not paying the agreed rent in the signed rental lease. The do have to follow due eviction process laid out in the Alberta Tenancy Act. However If the rent increase is illegal, you can successfully defend against the eviction.
5) How rental laws are impacted due to Covid19 Pandemic ?
The Government of Alberta has put in place new protections for residential and mobile home site on March 27, 2020 tenants facing financial hardship due to COVID-19.
Rent protections for renters include:
• Tenants cannot be evicted for non-payment of rent and/or utilities before May 1, 2020.
• Rents on residential properties or mobile home sites will not increase while Alberta’s State of Public Health Emergency remains in effect.
• Late fees cannot be applied to late rent payments until June 30 and cannot be collected retroactively for this time.
• Landlords and tenants need to work together to develop payment plans while COVID-19 is being managed.
• Landlords can still file applications and receive orders for possession if the reason for the eviction is unrelated to rent and/or utility payments, or if a tenant refused to negotiate or comply with a payment plan.
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