How to Discuss Rent Increases with Your Tenant in Edmonton

Even though the pandemic is over, we are still dealing with a lot of different issues. The pandemic rent freeze is ending soon in many parts of the country. You might consider deciding to raise your tenant’s rent. If your renter wants to extend their lease, you can choose to raise their rent. However, remember that the pandemic is still going strong, so it is important to understand and care about your tenant’s situation. A property manager must communicate openly with renters to ensure everyone is on the same page. You and your tenants will benefit from research and communication

It doesn’t have to be tense and stressful to raise the rent. There is a proper way to do it that will encourage professionalism and respect, ultimately putting you and your renters at ease.

Learn about the law

Legal rules for renting vary from province to province. People who rent in Alberta are covered by the Residential Tenancies Act (RTA), as well as people who run rental properties. As a landlord or property manager, you should know the rules and the rights of your tenants.

According to the RTA, landlords are limited in how much notice to raise rent in Edmonton,Alberta and when they can do it. Before signing a lease, the owner and tenant can agree on several things, such as when the rent will go up in the future. Also, you should read this over carefully before giving the renter notice of the rent increase Alberta to make sure it follows the law.

Tip: There is no cap on Alberta rent increase right now.  However, the property manager, also known as the owner, can’t raise the rent until either one year has passed since the lease began or one year has passed since the last rent increase.

Know how much rent goes on the market

Talk to several property management companies in the area to find out what the average rent price is in the area. You could also look at other flats for rent in the area and make inquiries that way. You should be sure that your raise makes sense. It could cost you renters if it is too high. Tell your tenants that the rent raise you’re making is in line with others in the market. Open talking is very important. Although tenants rarely ask for rent increases, it does help if they know why the rent is going up.

How important is it to give proper notice and time?

When you want to raise the rent, it’s important to give your tenant enough notice. Prepare a written statement to let them know, and make sure it has all the information and any possible incentives. If the market allows it or you can offer a small discount for renewing the lease early, you might want to think about it. A periodic tenancy has no end date. If the rent goes up, the landlord must give the renter written notice that they must sign. Legally, the notice only needs to say when the rent will go up and be signed and dated by the landlord or the owner’s agent, also known as the property manager.

Be aware of fixed-term leases

A residential lease with a set term has an end date in Alberta.  The Residential Tenancies Act says that the property manager and/or landlord does not have to give the tenant a written warning before the rent goes up.  In the spirit of good conversation, though, the more that is said about this subject, the better! As a general rule, you should give your renters about 60 days’ notice.  They have enough time to get their finances in order and enough notice to make plans in case they can’t meet the new financial standards. For fixed-term leases, both the owner and the tenant must follow certain rules, even though notice is not needed.

We can assist you

The team at PropertyManagement.YEG understands the value of treating tenants with dignity and honesty. With our assistance, you won’t have to worry about this crucial but potentially difficult process of tenant’s rent.