Annual Rent Increase Cap Tied to Inflation

Summary#

• This bill would cap most rent increases in Saskatchewan to a set limit each year. The limit (called the “guideline”) would match the change in the Consumer Price Index for Saskatchewan, which is a common measure of inflation (how prices rise over time).

• The cap applies while a tenant stays in the same home. The province must publish the allowed percentage each year.

• Key changes:

  • Sets a yearly rent increase guideline tied to Saskatchewan inflation, averaged over the 12 months ending March 31 and rounded to one decimal place.
  • Requires the government to publish the next year’s guideline by August 31 in the Saskatchewan Gazette.
  • Allows a landlord and tenant to agree to a higher increase only if the landlord provides a major improvement (capital work) or a new or added service.
  • Exempts certain units, including hotels and new buildings, for the first five years after first occupancy.
  • When a unit becomes vacant in buildings with 4 or more units, the new rent cannot be higher than the average rent of similar units in the same building.
  • Takes effect when it receives Royal Assent.

What it means for you#

• Tenants

  • Your rent increase while you stay in your unit would be capped at the published guideline each year.
  • You could agree to a higher increase only if your landlord gives a clear improvement (like major repairs or upgrades) or adds a new service, and you agree to it.
  • If you live in a building with 4 or more units and a unit turns over, the landlord could set the next rent for that unit up to the average rent of similar units in the same building, but not above that average.
  • The cap would not apply if you live in a hotel, motel, tourist home, hostel, a caretaker/employee unit, a room in a boarding house, or in a “new” building during its first five years after first occupancy (including new subsidized or rehab-designated buildings).
  • The guideline is based on inflation, so it may change each year.

• Landlords

  • You could raise rent during a continuing tenancy only up to the annual guideline.
  • You could charge more than the guideline only if the tenant agrees and you provide a specified capital improvement or a new or additional service.
  • In buildings with 4 or more units, when a unit becomes vacant you could set the new rent up to the average of similar units in that complex.
  • The bill does not add a special vacancy rule for buildings with fewer than 4 units.
  • New buildings are exempt from the cap for five years after first occupancy (including those without formal occupancy permits and those designated for rehab or social housing).

• Builders and developers

  • New rental buildings would be exempt from rent caps for five years from first occupancy, which may help early cash flow and financing.

• Local and provincial officials

  • The province would set and publish the annual guideline tied to CPI and may see added inquiries and disputes to manage.

Expenses#

No publicly available information.

Proponents’ View#

• Helps renters by preventing sudden, large rent hikes and making housing costs more predictable.
• Ties increases to inflation, which supporters say is a fair, transparent measure that reflects overall cost trends.
• Still allows needed building upgrades by letting landlords and tenants agree to higher increases in exchange for clear improvements or added services.
• Five-year exemption for new buildings aims to support new rental construction and keep investment coming.
• Limits on rent after vacancy in larger buildings help curb sharp jumps on turnover and reduce displacement pressure.

Opponents’ View#

• A CPI cap may not match actual landlord costs (for example, insurance, taxes, utilities, and financing), which could lead to reduced maintenance or exits from the rental market.
• The five-year exemption for new construction may be too short to attract enough investment, slowing the creation of new rental homes.
• Capping post-vacancy rents to the building’s internal average could discourage renovations or create complex disputes about what counts as “similar” units.
• Tenants might feel pressured to agree to above-guideline increases tied to upgrades or new services.
• More rules could increase administrative work and disputes for landlords and the province.