Increasing Rent in a Fixed-Term Tenancy

Subject to laws limiting rent increase, when a landlord and tenant make a fixed-term agreement, it is up to them whether the rent will increase during the tenancy. If it is to be increased, that fact should be clearly stated in the agreement, with details as to how the increase will take effect. Where a fixed-term tenancy is for a long period, you might want to be able to increase the rent after a period of time. If there is nothing in a fixed-term agreement that says the rent will increase then it will remain at the same rate during the agreement.

Effective April 24, 2007, rent increases are limited to one per year. In other words, rent can be increased if there has not been a rent increase within the previous year (365 days) or since the start of the tenancy, whichever is later. Even if a rent increase occurred before April 24, 2007, one year must elapse before rent is increased again. If the 365th day occurs during the term of a fixed term tenancy, the landlord cannot increase the rent until the tenancy agreement ends.  

Any notice to increase rent that doesn’t comply with the legislation is void and could result in a landlord facing fines.