Rent Increases, Damage Deposits & Rental Arrears: What Tenants Need to Know

As a tenant in a property with an Annual Rental Value (ARV) of $22,800 or more, your home is not covered by Rent Control. However, you still have rights, and your landlord must follow the law when increasing rent, handling deposits, or addressing rental arrears. The information below explains your protections and what steps to take if issues arise.

Rent Increases

Your landlord cannot raise your rent whenever they want.

Once you sign a tenancy agreement, your landlord must follow specific rules before increasing your rent. An increase may be proposed:

• At the end of your fixed-term agreement, or

• During your tenancy, but only if your agreement clearly allows it.
  

If you disagree with a proposed increase, Consumer Affairs encourages you to talk with your landlord and try to reach a compromise. If you feel uncomfortable negotiating or need support, contact Consumer Affairs before the new rent takes effect, because paying the new amount may be seen as accepting it.

Check Your Tenancy Agreement First

Your agreement will determine whether increases are allowed and how they must be handled:

• Fixed-term tenancies: Your rent generally cannot be increased during the fixed term unless:

  • You agree in writing, or

  • Your contract includes a rent review clause explaining when and how rent may change.

• After a fixed-term ends: If you renew your agreement or continue month-to-month, your landlord must notify you in advance of the new rent.
  

If your landlord verbally mentions a future increase, ask for the notice in writing before signing anything.

Notice Periods for Rent Increases

How much notice your landlord must give depends on how often you pay rent:

Tenancy Length / Payment Frequency Minimum Notice Required:

• Less than 1 month/1 month’s notice

• More than 1 month but less than 12/One full rental period

• 12 months or more/6 months’ notice
  

If you live with your landlord (e.g., boarding house), they may raise rent with fewer restrictions. If you do not have a fixed-term agreement, you cannot formally challenge a rent increase but you may still attempt to negotiate.

If You Don’t Pay the Increased Rent

If you refuse the new rate and cannot reach an agreement, your landlord can begin the eviction process, which includes written notice and a court order known as a possession order.

Damage (Security) Deposits

A landlord may request a deposit at the start of a tenancy to cover:

• Unpaid rent

• Damage beyond normal wear and tear

• Removal of abandoned belongings
  

Getting Your Deposit Back

At the end of your tenancy:

• Review your agreement for your landlord’s timeframe to return the deposit.

• If no timeframe is listed, a reasonable expectation is within 30 days after you move out and the landlord regains vacant possession.

• Complete all your move-out responsibilities (cleaning, painting if required, etc.).

• Request your deposit back in writing so you have proof of your request.
  

Your landlord may deduct from your deposit only if there is a legitimate reason, such as:

• Damage you caused

• Missing or broken inventory items
  

They must explain deductions and should do so in writing. They cannot deduct for:

• Normal wear and tear

• Damage caused by the landlord’s failure to repair problems
  

If you disagree with the deduction amount, you may seek legal advice, keeping in mind court costs may apply.

Before You Move Out

Consumer Affairs strongly recommends taking photos or videos of the entire unit, including:

• Appliances

• Fixtures (taps, doors, windows)

• Walls and floors

• Any item recently repaired or replaced
  

This evidence can help if there is a dispute over your deposit.

Rental Arrears (Late or Unpaid Rent)

Falling behind on rent is serious.

If you miss payments or pay late, you are considered in rent arrears. Continued non-payment may lead to eviction, so Consumer Affairs urges tenants to act quickly.

Confirm Who Is Responsible

You may not be responsible for the full arrears:

• Joint tenancy: Everyone who signed the lease is jointly responsible.

• Separate agreements: You are only responsible for your portion.

• New tenancy: You are not responsible for rent owed by the previous tenant.

• Assignments / takeovers: You may inherit previous arrears exercise caution.
  

Keep your tenancy agreement handy to clarify your start date and terms.

Confirm How Much You Actually Owe

Compare your landlord’s records to your own:

• Bank statements

• Money transfer receipts

• Written receipts for cash payments
  

Avoid paying rent in cash, but if you must, always request a dated receipt.

Try to Set Up a Repayment Plan

To avoid eviction, contact your landlord and propose a repayment plan that is realistic. This means:

• Paying your regular monthly rent plus small payments toward the arrears

• Writing down the agreement and having both parties sign
  

If your landlord refuses, pay what you can showing effort may help you in court.

If you receive a housing allowance, confirm with the Department of Financial Assistance that the correct amount is being paid.

Key Takeaways

• Your landlord must follow the law when increasing rent.

• You must receive proper notice before any rent increase takes effect.

• Damage deposits must be returned fairly, with deductions only for valid reasons.

• If you fall into arrears, act immediately and try to negotiate a payment plan.
  

Consumer Affairs encourages tenants to seek guidance early, especially if a disagreement arises or you feel pressured into accepting terms you do not understand.