Tenant Tips

You have a property and you want to increase the rent.. How much can you raise the rent without breaking the law or losing your tenants? This is a question that I get asked a lot by landlords. I have raised rents times and I learned the rules the hard way. Today you and I will go through everything you need to know about rent increases in Canada. By the end, you will know how much you can raise the rent in your province and how to do it properly. The Short Answer to How Can You Raise Rent Let me give you a quick answer. How much you can raise the rent depends on where your property’s located. In some provinces like Ontario and British Columbia, there is a percentage you can increase each year. In Alberta there is no maximum. There are still rules about timing and notice. The amount you can raise the rent is also influenced by market conditions and your specific property. I have seen landlords increase the rent by 20 percent and get away with it in Alberta. I have also seen them lose tenants because they pushed too hard. Understanding how much you can raise the rent is about balancing the law with business sense. Rent Increase Rules in Ontario In Ontario rent increases are regulated. The province sets a guideline. For 2025 the guideline was 2.5 percent. This applies to rental units. You cannot exceed this percentage without applying for a guideline increase. You must give 90 days written notice. You can only increase the rent once every 12 months. If you have a building that was first occupied after November 2018 rent control does not apply. For most landlords, the answer to how much you can raise the rent is the guideline percentage. I have seen landlords in Ontario frustrated by the limits.. The rules protect tenants from unfair increases. Rent Increase Rules in British Columbia British Columbia also has rent control. The province sets an allowable increase. For 2025 it was 3 percent. You cannot exceed this percentage. You must give three months written notice. You can only increase the rent once every 12 months. There are exceptions for buildings but they are limited. How much you can raise the rent in British Columbia is clearly defined by the government. I have helped British Columbia landlords understand these rules. The key is to plan and give proper notice. Tenants appreciate transparency. Rent Increase Rules in Alberta Alberta is different. There is no rent increase. You can raise the rent by any amount.. You can only do it once every 365 days. You must give three months written notice. The increase must be reasonable. What does reasonable mean? It means you cannot raise the rent in faith. You cannot raise the rent to retaliate against a tenant. If the increase is too high tenants may move out. I have seen landlords in Alberta increase the rent by 30 percent and regret it. The answer to how you can raise the rent in Alberta is market driven. Be careful. The Importance of Proper Notice No how much you can raise the rent you must give proper notice. In provinces you need 90 days written notice. The notice must state the rent amount and the effective date. It must be in writing. It must be delivered properly. If you do not give notice the increase is invalid. I have seen landlords lose months of increased revenue because they gave 60 days of 90. Follow the rules. Give notice. Market Factors That Affect How Much You Can Raise Rent Even if the law allows a large increase, market conditions matter. If your rent is already above market you will not find a tenant. If your building is in condition, you cannot charge top dollar. If the neighborhood is declining your rent potential is limited. I recommend researching rents in your area. Look at properties. See what they are charging. The answer to how you can raise the rent is often found in the market. Do your homework. How to Raise Rent Without Losing Tenants Raising the rent is a process. Tenants do not like paying more. You can minimize friction by being transparent. Explain the reasons for the increase. Show them the market data. Offer a payment plan if needed. Consider an increase over a longer period. I have kept tenants by increasing the rent modestly each year. The answer to how you can raise the rent is not always the maximum. Sometimes a smaller increase is better for long term cash flow. What Happens If You Raise Rent Too Much? If you raise the rent much, you may lose your tenant. You will have to find a tenant. That costs money. You will lose at least one month of rent. You will pay for advertising and screening. The new tenant may not be as good. I have seen landlords lose thousands because they pushed for a 20 percent increase. The answer to how you can raise the rent is a balancing act. You want to maximize income without losing a tenant. Conclusion You now know how much you can raise the rent in your province. The rules vary. Ontario and British Columbia have limits. Alberta has no limits. Requires notice and reasonableness. Always give notice. Research market rents. Be transparent with tenants. I have followed these rules for years. Have maintained good relationships with my tenants. Your rental property is a business. Treat it that way. Raise the rent fairly and professionally. Frequently Asked Questions (FAQs) How much can you raise the rent in Ontario? The annual guideline sets the maximum. For 2025 it was 2.5 percent. You must give 90 days notice. How much can you raise the rent in Alberta? There is no maximum. You can raise the rent by any amount. You can only do it once every 365 days. How much can you raise the rent in British 10

Sometimes life gets in the way. You need to leave your rental place for a while. You might be traveling, working in another city or going back to school. You think about finding someone to take over your place for a bit. Can you really do that? I have helped many tenants figure this out. Today we will go over the rules about subletting in Calgary. By the end you will know what you can. Cannot do and how to stay out of trouble. What Does Subletting Actually Mean? Let me explain it in terms. Subletting is when you rent your place to someone. You are still the tenant and you are still responsible to your landlord. The new person pays you. You pay the landlord. If anything goes wrong like damage or unpaid rent you are the one who has to deal with it. Subletting is pretty common near schools or among young professionals. The big question is: is subletting legal in Calgary? The answer depends on what your lease says and what your landlord thinks. What Does the Law Say About Subletting? Here is the truth. The law in Alberta does not say you cannot sublet. It does say that you need to get your landlords okay first. If you do not get their permission you could get evicted. I have seen it happen to tenants who thought they could do whatever they wanted. The rule is simple: get your landlord to agree in writing. So is subletting legal in Calgary? Yes,. Only if your landlord says it is okay. Can Your Landlord Say No? Yes they can. They need a good reason. The law says landlords have to be fair. If they say no without a reason they might be doing something wrong. Good reasons for saying no include worrying about many people living in the place, damage to the property or problems with the new tenant. I have seen landlords say no just because they did not feel like dealing with someone. That is not fair. If your landlord says no ask them to put it in writing. You might be able to challenge them. Check Your Lease Before you do anything read your lease. It is like a rulebook for your rental. Some leases say you cannot sublet all. Others say you can. You need to get permission. If your lease says no you cannot sublet. If it says you need permission you have to ask. I always tell tenants to read every word of their lease. It is a document and ignoring it can get you into big trouble. How to Ask Your Landlord Asking for permission is not hard. Write a letter to your landlord. Tell them why you want to sublet. Give them information about the person who will be living in your place. Share their name, phone number and references. Offer to check their credit. Remind your landlord that you are still responsible for everything. I have seen landlords say yes when tenants are honest and upfront. It makes a difference. What If You Sublet Without Permission? This is an idea. Your landlord can kick you out. They can also take you to court for damages. The process of getting evicted in Alberta can happen fast. You could be out of your place in a few weeks. I have seen tenants lose everything because they thought they could get away with it. Do not take the risk. Always get permission. How to Pick a Good Subtenant This is the important part. Treat it like you are the landlord. Check their credit. Make sure they have a job and can pay the rent. Call their references. Ask for a security deposit. Meet them in person. Trust your instincts. I have found subtenants by being careful. A good subtenant will take care of your place. Pay the rent on time. A bad one can cause you a lot of problems. Conclusion You now know the rules about subletting in Calgary. Yes it is legal. Only if your landlord says it is okay. Read your lease ask for permission in writing pick a subtenant and stay responsible. I have done it successfully. You can too. Subletting can be a solution when you do it the right way. Just follow the rules and be honest with your landlord and your subtenant and, with subletting you will be fine. Frequently Asked Questions (FAQs) Can I sublet without my landlords permission in Calgary? No you need to get their permission in writing. Subletting without it is against your lease. Can my landlord say no to subletting? Yes, but they need a reason. They cannot say no for no reason all. What is the difference between subletting and assignment? Subletting is for a time. You are still responsible for the place. Assignment is when you give the lease to someone permanently. Should I have a written agreement with my subtenant? Yes you should. It protects both you and your subtenant. Make sure to include the rent, when it is due and the rules. Who is responsible if my subtenant damages the place? You are. Your landlord will come to you for the money. Then you can try to get the money from your subtenant. Green Casa Co-Founder & Director Linkedin Envelope Instagram Hafil Perincheeri is an engineer-turned-realtor, investor, and builder based in Calgary, Canada. As Co-Founder and Director of Greencasa, he specializes in home flips, property development, and investment strategies. Since 2019, he has guided clients in home buying, multifamily investing, and financing options like CMHC and MLI Select, ensuring transparent, informed decisions. Get A Free Quote Green Casa Contact Form Full NamePhone NumberEmailCityServices– Select –Property ManagementConstruction ConsultancyCapital InvestmentMLI Select Program GuidanceDescribe your Requirement:Submit

You found an apartment. The rent is good the neighborhood is nice. You are ready to move in.. Your move in date is the 20th. Do you really have to pay for the month? The answer is no. You can ask for prorated rent. I asked for prorated rent times and I know how to do it. Today prorated rent is what we will talk about. By the end you will feel confident. You will save money on prorated rent. The Best Time to Bring Up Prorated Rent When you ask for prorated rent matters. The best time to ask for prorated rent is before you sign the lease for prorated rent. Ask about prorated rent during the application process for prorated rent. Ask the landlord or property manager directly about prorated rent. Do not wait until move in day when everything is rushed and you have to talk about prorated rent. I saw people who did not ask and ended up paying for days they did not stay in the apartment and pay for prorated rent. Asking shows you are thoughtful and informed about prorated rent. It also gives the landlord or property manager time to adjust the lease for prorated rent. When you ask early you are more likely to get a yes for prorated rent. Why Some Landlords Say No and What to Do Some landlords or property manager say no to prorated rent. They might have a policy or just want to make more money from prorated rent.. You can respond calmly and respectfully about prorated rent. Explain that you are only asking for what’s fair for prorated rent. Offer to pay the prorated amount on move in day for prorated rent. Offer to sign the lease for prorated rent. I saw landlords agree because the tenant asked politely about prorated rent. If they still say no to prorated rent consider if it is a deal breaker for prorated rent. For me it usually is a deal breaker for prorated rent. How to Calculate Prorated Rent and Present It When you ask for prorated rent be prepared for prorated rent. Have the calculation ready so you can show the property manager what you expect to pay for prorated rent. Use the rent method for prorated rent. Divide the rent by the number of days in that month for prorated rent. Multiply by the days you will be there for prorated rent. Present this clearly and confidently about prorated rent. I always bring a written calculation to the conversation about prorated rent. It shows you are organized and serious about prorated rent. It makes your request feel professional not like a favor for prorated rent. Why Asking for Prorated Rent Is Worth It Asking for prorated rent is worth the effort for prorated rent. It saves you money on prorated rent. It ensures you only pay for what you use for prorated rent. It establishes a relationship with your landlord or property manager  from the start for prorated rent. It also helps you budget accurately for prorated rent. I saved hundreds of dollars by asking for prorated rent. Over time that adds up for prorated rent. It also sets a precedent for prorated rent. If your landlord or property manager agrees to prorated rent they are likely to be fair in areas too for prorated rent. What to Do If Your Landlord Refuses If your property manager refuses prorated rent you have options for prorated rent. Ask if they will offer a rent credit of prorated rent. Ask if they will reduce the security deposit for prorated rent. Ask if they will include a moving in concession for prorated rent. Some landlords are willing to negotiate in ways for prorated rent. If they still refuse prorated rent decide if the unit is worth the cost for prorated rent. I walked away from rentals over this issue of prorated rent. It is a matter of principle for prorated rent. You should not pay for what you do not use for prorated rent. Prorated. The First Month of Tenancy The first month is when prorated rent matters most for prorated rent. You move in month and pay only for the remaining days for prorated rent. Some leases require a full month rent for the first month for prorated rent. This is a flag for prorated rent. I saw leases that hide this in the print for prorated rent. Always read the lease carefully for prorated rent. If you see a full month rent requirement for prorated rent ask about it for prorated rent. You may be able to negotiate a deal for prorated rent. Prorated Rent and the Last Month of Tenancy Prorated rent can also apply to your month for prorated rent. If you move out before the end of the month for prorated rent you should only pay for the days you stayed for prorated rent. Some landlords or property manager  try to charge a month anyway for prorated rent. That is not fair for prorated rent. I saw tenants get refunds for overpayment for prorated rent. Always give notice for prorated rent. Document your move out date for prorated rent. Ask for a prorated rent payment for prorated rent. If the landlord refuses prorated rent you may have recourse for prorated rent. Is Prorated Rent a Right? Prorated rent is not legally required in most places for prorated rent.. It is standard practice for prorated rent. It is considered fair and reasonable for prorated rent. Some provinces have rules for prorated rent. In British Columbia for example prorated rent is common for prorated rent. In Alberta it is less regulated but still widely used for prorated rent. I recommend checking your laws for prorated rent. Knowing your rights strengthens your position for prorated rent. If a property manager refuses without reason for prorated rent you may have a case for prorated rent.. Most property manager are reasonable for prorated rent. Conclusion You now know when 10

When you are signing a lease you have two options to consider. Gross rent seems like a choice. Net rent seems like it could save you money. Which one is actually the better deal? I have been looking at leases for a time and I have seen businesses save a lot of money by choosing the right structure. Today we will take a look at gross rent vs net rent. We will talk about the costs, the hidden fees and the value you get in the long run. By the time we are done you will know which lease structure is right for your business. The Simple Appeal of Gross Rent Rent is attractive because it is easy to understand. You pay one amount each month. You do not have to worry about surprise bills. You do not have to keep track of a lot of expenses. This is a benefit for small businesses that do not have a lot of accounting help. You can make a budget. Stick to it. I have seen business owners choose rent just because it is easier. There is a catch. You are paying for the convenience. The landlord adds a little extra to the rent to cover their own risks. This extra amount can be 10 to 20 percent more than the costs. When you understand rent vs net rent you see that simplicity comes with a price. The Cost Savings of Net Rent Rent can save you money if you are willing to put in the work. The base rent is lower. You only pay for what you use. You can save money on utilities by being efficient. You can negotiate maintenance contracts. You can even challenge the property tax assessments. These savings can add up over time. I have seen businesses save 15 to 25 percent on their occupancy costs with a net lease. This requires some effort. You need to keep track of your expenses and manage your vendors. Gross rent vs rent is a trade-off between control and convenience. The Hidden Fees in Gross Rent Leases Rent leases often have fees that you do not know about. The landlord may charge you for services you do not need. They may use vendors that’re too expensive. They may even overcharge you for utilities. You do not have any way to see these costs. The landlord does not have any reason to save you money. They just pass all the costs on to you. Some leases even include fees. Others include charges for things like snow removal or landscaping that could be done cheaper. I always tell people to ask for a breakdown of the operating costs before they sign a rent lease. Understanding rent vs net rent means understanding where your money is going. The Hidden Fees in Net Rent Leases Rent leases also have fees that you do not know about. You may have to pay for improvements that will benefit the building in the run. Things like replacing the roof resurfacing the parking lot and upgrading the elevators are common. These costs can be significant. You may also have to pay fees for property management. Some landlords charge a percentage of the costs as a management fee. This can add 3 to 5 percent to your expenses. I have seen tenants get surprised by these costs. You should always ask for a budget. Understand what is included and what is not. Gross rent vs rent is about knowing the total cost. Which Lease Structure Is Right for Your Business Type? The best lease structure depends on your business. Retail stores often like rent. They want to know how much they will pay each month. They also want to focus on their customers, not their expenses. Warehouses and industrial tenants often like rent. They do not use much utilities and they can handle their own maintenance. Office tenants are split. Some like rent. Others like the control of rent. I have seen both work. You should think about your business model. Think about how much risk you are willing to take. Gross rent vs rent is a personal decision that depends on your specific situation.   How to Negotiate a Better Lease No matter which structure you choose you can negotiate. For rent you should ask for a cap on the operating cost increases. This will protect you from jumps. Ask for a breakdown of the operating costs. Remove any services you do not need. For rent you should ask for a cap on the capital improvements. Limit your exposure to repairs. Ask for the right to audit the landlords expenses. This will keep them honest. I have negotiated these terms for clients. The landlord will often agree if you ask. Gross rent vs rent is not set in stone. You can customize the lease to fit your needs. Long Term Value: Which Lease Structure Wins? In the run net rent can be cheaper if you manage your costs well. It takes time and effort. Gross rent is easier. It may cost more. The difference can be significant over a ten year lease. I have seen tenants save tens of thousands of dollars with a lease. I have also seen tenants prefer rent for the peace of mind. You should think about your resources. Do you have a property manager? Do you have accounting support? Can you handle the work? Gross rent vs rent is not just about money. It is about your ability to manage. Conclusion Now you understand rent vs net rent. Gross rent is simple and predictable. It may cost more. Net rent has a lower base rent. The costs can vary and it is riskier. You should choose based on your business needs your resources and your risk tolerance. I have helped many business owners make this decision. The key is to understand all the costs and negotiate the terms. Your lease is an expense. Get it right, from the start. Your business will 10

You have a property and you want to make more money from it. Just raising the rent is not always the answer. There are ways to get more money from your rental property. I have been a landlord for a time and I have tried many different things. Today, we will look at some rental income strategies that really work to increase your income without losing your good tenants. By the end of this you will have a plan to make more money from your rental property. Strategy One Increase Rent In A Way The most obvious way to get more rental income is to raise the rent. You have to do it right. Never raise the rent by than 5 to 10 percent at a time. If you raise it by 20 percent at once your tenants will leave. You have to give them notice. In places that means telling them three months ahead of time. You have to explain why you are raising the rent and show them what they get for the money. You should also tell them about inflation. I have found that tenants are okay with increases every year. A 3 percent increase each year is easier for them to accept than a 15 percent increase every five years. Strategy Two Reduce The Time Your Property Is Empty When your property is empty you do not make any money. To reduce the time it’s empty you have to start looking for new tenants early. Send notices to your tenants 60 days before their lease ends. If they are not going to stay you should list your property away. Use photos and write a great description. Make sure the rent is right from the start. I have seen properties sit empty for months because the rent was too high. You have to keep your property in condition. Happy tenants stay longer. You can use a property condition report to help you take care of your property and avoid neglect. Strategy Three Add Value To Your Property You can get money for your property if you add some value to it. You do not have to fix up the kitchen. Just doing a small things can make a big difference. You can put in lights paint the walls or get a new bathroom sink. You can also replace the carpets with new floors. If you do not have a washing machine and dryer in the property you can add them. If you have space you can add a parking spot. I have seen people raise the rent by 100 to 200 dollars per month by making a few small changes. You should focus on the things that tenants like the most. Strategy Four Offer Deals To Your Tenants Sometimes you can get money by offering your tenants a deal that is based on excellent rental income strategies. It sounds strange. Just listen. You can offer them a month of rent if they sign a 12 month lease at a higher rent. They will pay money overall but they will feel like they got a good deal. This works well in areas where there are a lot of properties for rent. You can also offer them parking or free utilities if they pay a higher rent. I have done this before. It works. It attracts tenants who might have looked at properties otherwise. Strategy Five: Reduce Your Expenses Getting money is only half of it. You also have to reduce your expenses. You should look at your property taxes. Are you paying much? You can challenge the taxes if you think they are too high. You should also look at your insurance. You can shop around to find a deal. You can reduce your utility bills by using energy lights and thermostats. You should also take care of your property to avoid repairs. A property condition report can help you find problems before they become issues. I have saved a lot of money by catching problems Strategy Six Think About Short Term Rentals If your property is in a location you might want to think about renting it out for short periods of time. You can use websites like Airbnb to rent out your property. You can make money this way than by renting it out for a long time. There are some downsides. You will have to do work and the property will get worn out faster. You will also have to clean it often. Some cities have rules about short term rentals so you should check on that before you start. I have done this before with properties in tourist areas. I made money but it was also more work. Strategy Seven Offer Extra Services Tenants will pay for things that make their lives easier. You can offer them services for a fee. You can offer to take care of their pets clean their house or mow their lawn. You can also charge them for parking or storage. In some buildings you can rent out the room. I have seen people charge extra for parking spots. You should think about what your tenants need and what they would pay extra for. A property condition report can help you find ways to make money. Strategy Eight Review Your Lease Your lease can also affect how money you make. You should think about how much you charge for a security deposit. You should also charge a fee if the tenant pays their rent late. You can include a fee for cleaning the property when they move out. If you allow pets you can charge a deposit. You have to make sure your lease is fair and protects your income. I have seen people lose money because their lease was not good. You should review your lease every year. Conclusion You now have eight rental income strategies to maximize your income. You can raise the rent in a way. You can reduce the time your property’s empty. You 10

Few things feel more uncomfortable than telling a tenant they have to leave.. Sometimes as a landlord you have no choice. The first step is always the same: you must deliver an eviction notice to tenant. I have been through this process times than I care to count. I want to help you get it right. Today you and I will walk through every type of eviction notice. We will cover the requirements and the costly mistakes you need to avoid. By the end you will feel confident handling the toughest situations. What Is an Eviction Notice to Tenant. Why Is It So Important? Let me start with the basics. An eviction notice to tenant is a written document. It informs a renter that they must move out by a date. It is not a court order. It is the first legal step in ending a tenancy. In most of Canada, including Alberta and BC you cannot simply tell a tenant to leave. You cannot change the locks. Throw their belongings out. You must use the eviction letter to tenant that follows provincial laws. I have seen landlords lose thousands in fines. They skipped this step. Used the wrong form. The eviction notice is your shield. Use it properly. The law protects you. Use it wrong. You could end up paying damages to the tenant. The Most Common Reasons You Need to Serve an Eviction Notice You cannot evict a tenant just because you feel like it. The law gives reasons. The common reason is non-payment of rent. If a tenant does not pay on time you can serve an eviction notice to tenant. This can happen soon as the day after rent was due. Another reason is damage to the property. If a tenant punches holes in walls or floods the bathroom you can act. Illegal activity on the premises like drug dealing is also grounds. If the tenant repeatedly disturbs tenants or ignores the lease rules you may issue an eviction letter to tenant. Each reason has notice periods and forms. I always tell landlords to keep a checklist. Know why you are evicting before you write a word. The Different Types of Eviction Notices and When to Use Each One Let me break down the common eviction notices. For non-payment of rent you typically serve a 14-day eviction notice to tenant. This gives the tenant two weeks to pay or move out. If they pay within those 14 days the eviction stops. If they do not you can apply to a tribunal for a possession order. For cause evictions, like damage or illegal acts the notice period is often 30 days. Sometimes it is less depending on the severity. For no-fault evictions, such as when you need to move into the property yourself the notice period is usually two months. You may owe the tenant compensation. The eviction process varies by province. In Alberta you use the RTDRS forms. In BC you use Residential Tenancy Branch forms. Never guess. Always download the eviction letter to tenant from your provincial government website. How to Serve an Eviction Notice Properly So It Holds Up in Court Serving the notice is as important as the content. You cannot just slide it under the door. Send a text message. The law requires service. In provinces you can hand the eviction notice to tenant directly to the tenant in person. You can also leave it with an adult at the unit if the tenant is not home. Some provinces allow mail or posting on the door with a witness. I recommend using methods. Hand-deliver it take a photo of the notice on the door. Send it by certified mail. Keep records. I once had a tenant claim they never received the eviction letter to tenant. Because I had a signed delivery receipt and a witness photo the tribunal ruled in my favor. Documentation is everything. What Happens After You Serve an Eviction Notice: The Step-by-Step Process You served the notice. Now what? You wait. If the tenant moves out by the deadline the eviction process ends. If they stay you must apply to your tenancy authority for an order of possession. In Alberta you file with the Residential Tenancy Dispute Resolution Service. In BC you file with the Residential Tenancy Branch. You will need to provide a copy of the eviction notice to tenant, proof of service and evidence of the reason. The authority will schedule a hearing. You and the tenant both get to tell your side. If the adjudicator agrees with you they issue an order of possession. That order gives you the right to evict. You still cannot remove the tenant yourself. You must then hire a bailiff or sheriff to physically remove them. The whole eviction notice process from start to finish can take one to four months. Common Mistakes Landlords Make With Eviction Notices I have seen many errors. Mistake one: using the form. Each province has eviction letter to tenant templates. Using an internet form can void the entire eviction. Mistake two: filling out the form incorrectly. Wrong dates, names, wrong address. Mistake three: serving the notice improperly. Mistake four: accepting rent after serving an eviction notice to tenant. In provinces accepting any rent resets the clock. You lose your grounds for eviction. Mistake five: trying to evict for a reason like the tenant complained about repairs. That is illegal. Mistake six: doing a self-help eviction. Changing locks shutting off utilities or removing doors is an offense in most provinces. Avoid these mistakes. Your eviction will go smoothly. How to Handle an Eviction Notice When the Tenant Fights Back Sometimes tenants dispute the eviction notice to tenant. They may claim the notice was not properly served.. They may say the reason is unfair. They may claim they paid rent on time. At the hearing you will need evidence. Bring your lease your rent records, photos of damage witness statements and proof of service. Stay calm 10

Raising rent is one of the stressful tasks for any landlord. You need to keep up with rising costs. You also do not want to scare away your best tenants. I have managed hundreds of units and I have learned that a rent increase does not have to end a good relationship with your tenants. Today you and I will talk about how to handle rent increases effectively with your tenants. You will learn the rules, the best timing and the human side of the conversation with your tenants. Know the Legal Rules for Rent Increases in Your Province Before you do anything you need to understand the law in your province. In British Columbia you can only raise rent once every 12 months. The increase is capped by the provincial government each year. In Alberta there is no cap. You still can only raise rent once per year for existing tenants. In Ontario there is a guideline increase unless the unit is exempt. You must give written notice to your tenants. In provinces that is three months. I have seen landlords lose disputes because they gave 60 days of 90. A rent increase that breaks the rules is void. Your tenant can simply refuse to pay it. You cannot evict them. Check your provincial tenancy act before you write a number for the rent increase. Why a Fair Rent Increase Actually Helps Your Tenants You might think tenants always hate rent increases. That is not entirely true. A reasonable predictable increase helps your tenant plan their budget. It also ensures you can afford to maintain the property for your tenants. If you never raise rent you will eventually fall behind on repairs. Then your tenant lives in a deteriorating home. A small annual increase of 2 to 4 percent is easier to swallow than a 15 percent jump after five years of no changes. I always tell my tenants during lease signing that I raise rent modestly each year. They appreciate the transparency. A rent increase done builds trust, not anger, with your tenants. How to Calculate a Fair and Defensible Rent Increase Do not just pick a number out of air. Look at market comparables. What are similar units in your neighborhood renting for? If you are charging $1,500 and the market average is $1,800 you have room to move up. If you are already at market rate stick to the guideline or a small percentage. Also consider your increased costs. Property taxes went up. Insurance went up. Utilities cost more. Add up those increases and divide by the number of units. That gives you a baseline. A rent increase of $25 per month on a $1,500 rent is 1.6 percent. Most tenants will not leave over that. The Best Time to Announce a Rent Increase Timing matters enormously. Never announce a rent increase during the holidays. When a tenant is going through a personal crisis. The best time is 90 days before the lease renewal date, which’s also the legal notice period in many provinces. Send the notice after the tenant has had a month not after a maintenance complaint. I also recommend not raising rent in the year of a tenancy. That feels bait and switch. Wait until the year.. If a tenant has been perfect for three or four years consider skipping an increase once in a while as a thank you to your tenants. That loyalty bonus often keeps them for another three years. How to Write a Rent Increase Letter That Keeps the Peace Your rent increase letter should be warm, clear and professional. Start by thanking the tenant for being great. Then explain the reason briefly. “Due to increased property taxes and insurance costs I need to adjust the rent by $30 per month starting on date.” Include the notice period and the new rent amount. Offer to discuss if they have concerns. Do not apologize excessively. That makes you look weak.. Do not be cold either. I use a template that says, “I value you as a tenant and I have kept this increase low as possible.” Most tenants accept a rent increase when it is presented respectfully by their landlord. What to Do When a Tenant Says No or Wants to Negotiate Sometimes a tenant will push back. They may say they cannot afford it or they will move. Listen first. If they are a tenant consider negotiating with them. Offer a $15 increase of $30.. Offer to delay the increase by three months.. Offer to add a service like professional carpet cleaning once a year. The cost of finding a tenant is high. You lose one month rent on vacancy. Advertising, screening and cleaning. That can easily cost $2,000. If a rent increase of $360 per year risks losing that you might be better off keeping them happy. I have kept tenants by compromising with them. How to Avoid Rent Increase Disputes and Bad Feelings The way to avoid conflict is to set expectations early. When a new tenant signs the lease tell them “I raise rent once a year by an amount, typically 2 to 3 percent.” That is no surprise. Also never raise rent after a big problem like a broken dishwasher or a noisy neighbor. That looks like retaliation. Spread out your increases. If you skipped year do not double up this year.. Always give more notice than required. Three months is the minimum. Giving four or five months shows respect to your tenants. A rent increase should never be a surprise. Conclusion You now know how to handle rent increases without losing tenants. Know the law calculate an amount time it well write a warm letter and be open to negotiation, with your tenants. Your best tenants are worth keeping. A small predictable rent increase each year keeps your business healthy and your tenants happy. I have used these methods for years. They work. Now go raise that rent with confidence. Frequently Asked Questions 10