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

New Brunswick significantly reformed its rent increase laws, implementing a strict annual rent cap that took effect on February 1, 2025. Understanding these new regulations is critical for landlords calculating their annual revenue projections.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Rent control regulations frequently change. Always verify the current allowable rent increase limit with the Tenant and Landlord Relations Office. Information last verified: March 2026.

The 3% Annual Rent Cap

As of February 1, 2025, New Brunswick has established a hard rent cap limiting standard annual rent increases to 3%.

This limit is evaluated on an annual basis and is currently locked in for the 2025-26 fiscal year. Prior to this cap, there was no hard percentage limit, meaning landlords must now carefully adjust their strategies.

Frequency of Increases

• Rent can only be increased once every 12 months.
• Landlords cannot implement any rent increase during the first 12 months of a new tenancy.

Notice Period: 6 Months

Landlords must provide tenants with at least six (6) months' written notice before any rent increase can take effect.

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 3% Cap

The 3% 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 3% cap on the previous tenant.
• Applying for Higher Increases: If a landlord believes a 3% 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.
  • The TLRO can approve increases above 3%, up to an absolute maximum of 9%.
  • Landlords must provide 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 3% without TLRO approval, or proper notice wasn't given), they can apply to 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 3% cap (up to 9%), keep exhaustive records of all renovation costs, contractor invoices, and permits to present a strong case to the TLRO.

How Landager Helps

With the 6-month notice requirement, tracking which tenants are eligible for an increase and when you need to serve the notice is vital. Landager's rent management dashboard automates lease anniversaries, calculates the precise 3% allowable increase, and safely stores your generated rent increase notices to ensure absolute compliance.

Back to New Brunswick Landlord-Tenant Laws Overview.