Can an Alberta Landlord Charge Late Fees or Raise Rent in a Fixed Term?

If you are on a fixed-term lease and your landlord sends a rent increase notice or a late fee demand, it is fair to ask whether that is allowed. The answer depends on what the lease says and what the Residential Tenancies Act requires.

This article covers the rent increase rules that apply during a fixed term and explains how to approach a late fee demand. It is general information, and a lawyer can review your actual lease.

This article covers the law of Alberta.

Rent increases during a fixed term

No rent increase is allowed during a fixed term of one year or more. Alberta.ca also states that rent cannot be increased during a fixed term. So a notice that tries to raise your rent while the fixed term is running is a red flag.

A fixed-term tenancy ends on the date in the agreement without any notice, and ending it early requires both parties to agree. That also means a landlord cannot simply end it early to bring in a higher rent.

The general rules for any rent increase

For periodic tenancies, the landlord must give written notice of at least 12 tenancy weeks for a weekly tenancy, 3 tenancy months for a monthly tenancy, or 90 days for another periodic tenancy. The notice must state the effective date and be dated and signed by the landlord.

Rent also cannot be increased until at least 365 days have passed since the start of the tenancy or the last increase, whichever is later. Alberta has no rent control, so there is no limit on the amount of an increase, only the notice and timing rules.

What happens if you pay or ignore a notice

A periodic tenant who does not give notice of termination effective by the increase date is deemed to accept the increase. How this applies to a fixed-term tenancy depends on your situation, so it is worth confirming with a lawyer.

If a rent increase notice does not comply with the rules, it is void, and a tenant who overpaid can recover the excess in an action in debt. Keep your receipts so you can show what you paid and when.

Late fees

Whether a landlord can charge a late fee depends on what the lease says and how the charge is described, and a lawyer can confirm whether a particular fee can be enforced. Read the clause closely and ask the landlord to explain in writing how the amount was calculated.

Late rent can have serious consequences even if the fee itself is disputed. A landlord may give a 14-day notice for substantial breach, which includes unpaid rent. That notice must state that the tenancy will not be terminated if you pay the rent due and any overdue amounts on or before the termination date. Paying the rent due before the termination date makes the notice ineffective.

What to do next

• Check your lease for the fixed term dates and any fee clause.
• If you received a rent increase notice, check whether it is written, signed, dated and states the effective date.
• Ask the landlord in writing to withdraw an increase that falls within a fixed term.
• Keep rent receipts and all messages about fees.
• If you get a 14-day notice for unpaid rent, paying the rent due before the termination date makes it ineffective.
• If the dispute continues, get legal advice before applying to the RTDRS or court, since the first filing can decide the forum.

Frequently asked questions