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.

The 3% Annual Rent Cap

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

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 or the precise 15-day notice to vacate for non-payment—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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