Rent (Amounts, Payment, Increases)

Quick Facts
  • Rent cannot be increased within the first twelve months of moving into a new unit.
  • Rent can only be increased once in a twelve-month period.
  • Rent cannot be increased for the duration of a fixed-term rental agreement.
  • Landlords must provide tenants with six months written notice of rent increases.
What You Need to Know

In Newfoundland and Labrador, a landlord is free to set the rent at any amount they wish. There are, however, some rules about when and how rent can be increased.

 

General

If a landlord wishes to increase the amount of rent, they must notify the tenant in writing.

Increases to the amount of rent become effective on the first day of a rental period. A rental period begins on the day your rent is normally due. A rent increase cannot take effect in the middle of a rental period.

Rent cannot be increased during the first twelve months after a tenancy begins and can only be increased once in a twelve-month period.

A landlord is only permitted to collect the first month of rent and a security deposit of not more than 75% of the monthly rent amount when a tenant moves into a rental unit. A landlord is NOT permitted to ask for the “last month’s” rent, or the “last week’s rent”, as the case may be. You can visit our Help Topic on Security Deposits for more information.

 

Rental Increase Notice Periods

If a tenant has signed a fixed-term rental agreement, such as a year-long agreement, the landlord cannot increase rent for the duration of that agreement. If the landlord wishes to increase the amount of rent when the agreement expires, they must provide the tenant with at least six months written notice before the rent increase takes effect.

If a tenant is renting month-to-month and the landlord wishes to increase the amount of rent, they must provide the tenant with at least six months written notice.

If a tenant is renting week-to-week and the landlord wishes to increase the amount of rent, they must provide the tenant with at least eight weeks written notice.

 

Late Rent

If a tenant is more than five days late paying rent the landlord may serve a termination notice for non-payment of rent and begin the eviction process. We have created a Help Topic that specifically covers Termination Notices.

If a tenant does not pay rent by the end of the day it is due the landlord may charge a late fee. The maximum amount that can be charged for late fees is $5 for the first day rent is late and $2 for each additional day, to a maximum of $75. A tenant is only required to pay late fees if requested by the landlord. If the landlord does ask the tenant to pay late fees the amount of the late fees becomes part of the “rent” that must be paid to avoid eviction.

 

 

Other Ways to Pay Rent

Rent can be paid in ways other than money if the landlord and tenant enter into a written agreement to do so. The written agreement would need to explain what the tenant is expected to do, and the value placed on each item.

For example, let’s say the monthly rent is $750 and the landlord and tenant enter into an agreement that the tenant would maintain the property around a shared building for $200 per month. As long as the tenant maintained the property as agreed they would only need to pay the landlord $550 for rent each month, because the property maintenance work performed by the tenant would be worth $200.

 

Seizing a Tenant’s Property for Unpaid Rent

A landlord is NOT permitted to take possession of a tenant’s belongings as a result of a breach of the rental agreement or because the tenant owes the landlord money for rent. A landlord should not prevent a tenant from removing any of their belongings from a rental unit at any time. However, if a landlord has removed a tenant’s belongings from a rental unit and placed them into storage under the rules for abandoned property, a tenant is required to pay the landlord for the reasonable costs of removal and storage of the items before taking back possession of their belongings. We have created a Help Topic called Abandonment of Rental Unit that explains the process for abandoned property.

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Files / Documents
Notice to Increase Rent Form (PDF)
Landlords can use this form to notify their tenants about a rental increase.
Download / View
Resources
Fact Sheet – Increasing Rent (Service NL) (PDF)
A fact sheet from Service NL that explains the rules surrounding rental increases.
Visit
Fact Sheet – Security Deposit (Service NL) (PDF)
A fact sheet from Service NL about security deposits.
Visit
Legislation

Rent paid in other than money

11. (1) Where rent is payable in part or in whole in other than money, a landlord shall give to the tenant a written document, signed by the landlord, specifying the payment in other than money and valuing in money each item contained in the payment.

(2)  The written document referred to in subsection (1) may form part of a written rental agreement.

(3)  Subsection (1) applies whether rent is payable in other than money on one or more occasions or on a regular basis.

(4)  Where a landlord fails to value in money each item contained in the payment under subsection (1), the director may, upon hearing an application under section 42, value each item contained in the payment.

(5)  Where there is no written document which provides for payment of rent in whole or in part in other than money, the director may, upon hearing an application under section 42, determine whether an agreement exists between the parties and may value in money each item contained in the payment.

 

Future rent

12. (1) A landlord shall not require a tenant to make, or accept from a tenant,

(a)  a prepayment of the last week's or the last month's rent; or

(b)  a single rental payment that is greater than any other regular rental payment required under the rental agreement.

(2)  Notwithstanding subsection (1), a rental agreement may provide for the delivery of a post-dated payment method for the payment of rent.

 

Rent for fixed term rental agreement

13. Where a residential premises is rented for a fixed term, a rental agreement for the residential premises shall provide for payment of rent by equal monthly instalments, whether or not the total amount of rent payable for the term is stated.

 

Fee for failure to pay rent

15. (1) Where a tenant does not pay rent for a rental period within the time stated in the rental agreement, the landlord may charge the tenant a late payment fee in an amount set by the minister.

(2)  Where a cheque for the payment of rent is returned to a landlord by a financial institution because of insufficient funds, the landlord may charge the tenant a fee in the same amount as the fee charged to the landlord by the financial institution.

 

Rental increase

16. (1) Notwithstanding another Act, agreement, declaration, waiver or statement to the contrary, a landlord shall not increase the amount of rent payable by a tenant,

(a)  where the residential premises is rented from week to week or month to month, more than once in a 12 month period;

(b)  where the residential premises is rented for a fixed term, during the term of the rental agreement; or

(c)  where a tenant continues to use or occupy the residential premises after a fixed term has expired, more than once in a 12 month period.

(2)  Notwithstanding subsection (1), a landlord shall not increase the amount of rent payable by a tenant during the 12 month period immediately following the commencement of the rental agreement.

(3)  Where a landlord increases the amount of rent payable by a tenant, the increase shall be effective on the first day of a rental period, and the landlord shall give the tenant written notice of the increase

(a)  not less than 8 weeks before the effective date of the increase where the residential premises is rented from week to week; and

(b)  not less than 6 months before the effective date of the increase where the residential premises is rented from month to month or for a fixed term.

(4)  In addition to the requirements under section 34, a notice under subsection (3) shall

(a)  b e signed by the landlord;

(b)  state the effective date of the increase;

(c)  state the amount of the increase;

(d)  state the amount of rent payable when the increase becomes effective; and

(e)  be served in accordance with section 35.

(5)  Where a landlord discontinues a service, privilege, accommodation or benefit or a service, privilege, accommodation or benefit is unavailable for a period of time, and the discontinuance or unavailability results in a reduction of the tenant's use and enjoyment of the residential premises, the value of the discontinued service, privilege, accommodation or benefit is considered to be an increase in the amount of rent payable.

(6)  The director may, upon hearing an application under section 42, value a service, privilege, accommodation or benefit discontinued or unavailable for a time under subsection (5).

(7)  Notwithstanding subsection (1), where the landlord and tenant agree in writing, a landlord may increase the amount of rent payable by a tenant for the residential premises without notice under subsection (3) where the increase is due to the provision of a service, facility, privilege or benefit, including a parking space, that was not previously provided under the rental agreement.

 

Record of tenant's payments

17. (1) A landlord shall maintain a complete and up-to-date record of

(a)  rent and other money received from a tenant; and

(b)  the receipt and disbursement of a security deposit and interest under section 14.

(2)  A record required under subsection (1) shall identify the tenant and residential premises to which the money relates.

(3)  Upon the request of a tenant, a landlord shall provide a tenant with a receipt for rent or other money paid to the landlord in relation to the residential premises.

 

Notice where failure to pay rent

19. (1) Notwithstanding subsection 18(2) and paragraph 18(3)(b),

(a)  where the residential premises is rented from week to week and the amount of rent payable by a tenant is overdue for 3 days or more, the landlord may give the tenant notice that the rental agreement is terminated and that the tenant is required to vacate the residential premises on a specified date not less than 3 days after the notice is served on the tenant; and

(b)  where the residential premises is

(i)  rented from month to month,

(ii)  rented for a fixed term, or

(iii)  a site for a mobile home, and

the amount of rent payable by a tenant is overdue for 5 days or more, the landlord may give the tenant notice that the rental agreement is terminated and that the tenant is required to vacate the residential premises on a specified date not less than 10 days after the notice is served on the tenant.

(2)  Notwithstanding subsection (1), where the tenant pays the full amount of the overdue rent, including a fee under section 15, before the date specified in the notice under paragraph (1)(a) or (b), the rental agreement is not terminated and the tenant is not required to vacate the residential premises.

(3)  Subsection (2) does not apply where notice is given to a tenant under paragraph (1)(a) or (b) more than twice in a 12 month period.

(4)  In addition to the requirements under section 34, a notice under this section shall

(a)  be signed by the landlord;

(b)  state the date on which the rental agreement terminates and the tenant is required to vacate the residential premises; and

(c)  be served in accordance with section 35.

 

Seizure of property

33. A landlord shall not take a tenant's personal property to compensate for a contravention of an obligation by the tenant, including a failure to pay rent.