New Brunswick Rent Increase Laws: The 2025 Rent Cap and Notices

New Brunswick significantly reformed its rent increase laws, implementing an annual rent cap mechanism that took effect on February 1, 2025. Governed by the Residential Tenancies Act (SNB 1975, c R-10.2), which originally came into effect on 1 December 1975, these regulations aim to balance landlord viability with tenant protection.

Annual Rent Increase Cap

Under Section 11 of the Act, landlords must provide tenants with at least six (6) months' written notice before any rent increase can take effect. For 2025, the standard allowable increase is capped at 3.0%.

Formatting Requirements:

• The notice cannot simply be an email or a text message. It must be a formal, separate, standalone document delivered to the tenant.
• It must clearly state the current rent, the new rent amount, the percentage increase, and the exact effective date of the new rent.
• Landlords must ensure they serve this notice properly to prove it was received a full 180 days in advance.

Exemptions to the Annual Cap

The annually set cap primarily protects existing active tenancies.

• New Tenancies: When a unit becomes vacant, the landlord is generally free to set the initial rent amount for the new tenant at current market rates, unaffected by the annual cap applied to the previous tenant.
• Applying for Higher Increases: If a landlord believes the announced annual increase is insufficient—specifically due to major capital expenditures or significant renovations—they can apply to the Tenant and Landlord Relations Office (TLRO) for an exception under Section 11.1.
  • The TLRO may approve increases above the standard cap (up to a maximum of 9%) if the landlord provides detailed financial evidence justifying why the capital expenditure necessitates the higher increase. Routine maintenance does not qualify.

Tenant Responses to Rent Increases

When a tenant receives a 6-month Notice of Rent Increase, they have three distinct options under New Brunswick law:

1. Accept the Increase: The tenant simply continues the tenancy and begins paying the new amount on the effective date.
2. End the Tenancy: The tenant can choose to move out. To do so, they must provide their standard written notice to end the tenancy (e.g., one full month for a month-to-month lease). The move-out date is usually timed to coincide with the date the rent increase would have taken effect.
3. Request a TLRO Review: If the tenant believes the rent increase violates the Residential Tenancies Act (e.g., it exceeds the annually announced cap without TLRO approval, or proper notice wasn't given), they can apply to the Residential Tenancies Tribunal (via the TLRO) for a review. The tenant must apply within 60 days of receiving the notice.

Best Practices for Landlords

1. Plan Six Months Ahead: Because you must give 180 days' notice, you must plan your annual budget and rent adjustments half a year in advance. Keep meticulous track of lease anniversary dates.
2. Issue Required Forms Correctly: Use clear, formal, written documentation. Save copies of the served notices and any communication proving receipt.
3. Document Capital Projects: If you intend to apply for a rent increase above the standard annual cap, keep exhaustive records of all renovation costs, contractor invoices, and permits to present a strong case to the TLRO.

How Landager Helps

Managing properties in New Brunswick presents unique administrative challenges, most notably the requirement to remit all residential security deposits to the Service New Brunswick Residential Tenancies Tribunal within 15 days of collection. Missing this deadline is a compliance violation. Landager's comprehensive platform aids NB landlords by completely automating the tracking of these crucial deposit timelines, ensuring seamless operations. Furthermore, the platform expertly manages complex notice schedules—such as the mandatory 6-month notice for rent increases under Section 11—maintaining immaculate digital records of all communications. Whether managing a multifaceted residential portfolio or overseeing commercial leases, Landager shields you from costly administrative missteps and ensures you always have rigorous, RT-compliant documentation readily available.

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