Economic evictions

Getting a large rent increase can feel upsetting or unfair — especially if it seems like the landlord is trying to push you out without formally evicting you. You may feel frustrated, stressed, or overwhelmed. All of these feelings are valid. Before deciding how to respond to a notice of rent increase, take a moment to think about what feels right for you right now.

You may have your own reasons for deciding to stay and pay the higher rent. Or, if your lease is ending soon, this might be as an opportunity to think about whether this is still the right home for you – or whether it’s time to look for a new place to rent.

You can also think about whether you have the time, energy, and emotional space to deal with a possible legal process — such as an RTDRS hearing (if you refuse to pay the higher rent) or make a rent abatement application (if you do)? You might choose to dispute the rent increase. There’s no right or wrong answer. Only you can decide what works best for your situation.

1. Send a written notice right away to your landlord, explaining that you don’t think it’s a valid rent increase notice and that you think it’s an economic eviction.
   
   For example, you can write, “I don’t think this is a valid rent increase notice as I think it’s an economic eviction and invalid under common law.”
   
   
2. If the landlord does not reduce the rent increase and the increase has already come into effect, you can pay the higher rent. If you do pay the higher rent, you can promptly make an application to the RTDRS or court for a reduction (abatement) of rent.
   
   
3. When your matter goes to the RTDRS or court, the decision-maker will assess the validity of the rent increase.
   
   Tip: The Government of Alberta’s website provides more information, including a step-by-step guide, on how to make an RTDRS application.

1. Send a written notice right away to your landlord, explaining that you don’t think it’s a valid rent increase notice and that you think it’s an economic eviction, but don’t pay the increased amount of rent. However, keep paying your current rent.
   
   For example, you can write, “I don’t think this is a valid rent increase notice as I think it’s an economic eviction and invalid under common law.”
   
   
2. If the increase has already come into effect and you have only paid the pre-increase amount, the landlord may respond. They may respond by reissuing a different notice of rent increase, or they may decide to end your tenancy for not paying the full amount, with a notice of termination for non-payment of rent.
   
   
3. If the landlord ends your tenancy, you can object in writing to the notice of termination for non-payment of rent.
   
   For example, you can write, “I’ve paid my rent, I’m not in arrears, and this is an invalid rent increase notice. Therefore, I’m not paying the rest of it.”
   
   Tip: You don’t have to move out if your landlord serves you a notice of termination for non-payment of rent and you disagree with their reasons for ending your tenancy. You have the right to a hearing at the RTDRS or court, where you can explain your side in front of a decision-maker.
   
   
4. If your matter goes to the RTDRS or court, you can raise economic eviction as a defence. The decision-maker will assess the validity of the rent increase.
   
   CAUTION –  Waiting to defend yourself can be risky; if you lose, you may be evicted and/or ordered to pay rental arrears (what you owe in rent). 

To determine whether there is an economic eviction, the courts and RTDRS will look at various factors, including:

• Does the landlord have a motive to evict the tenant? The relationship between the landlord and tenant, or other circumstances, may show that the landlord has a motive to evict the tenant.
• Is the rent increase part of a broader increase for all tenants?
• Is the landlord singling out the tenant?
• Is the rent increase higher than for similar units in a similar location (for example, other similar units in the same building)?
• Does the landlord have a reason for the rent increase (for example, market rental rates or upgrades to the building or unit)?

A significant rent increase by itself is not enough to be an economic eviction. The courts and RTDRS look at the factors listed above and the specific situation in making their decision.  

It’s not always easy to spot the signs of an economic eviction, whether as an individual tenant or group of tenants. Sometimes, a landlord may try to indirectly evict all or many tenants in a building by raising rent significantly. This can be a way to get everyone out so that they can renovate the building and re-rent units at a higher rent (also known as a “renoviction”). If all or most tenants in a building get a significant rent increase that doesn’t reflect the condition of the building or what similar places and locations are renting for, it could be a sign of an economic eviction. If you or your neighbours are unsure whether you are facing an economic eviction, get legal help.

You can search for case law on “economic evictions” on CanLII, which provides free access to judicial decisions in Canada. For example, you can type “economic evictions” and “Alberta” in the document text box and get a list of published decisions. Not all RTDRS decisions are published. But they can give you an idea of how economic eviction cases have been decided.

To learn more about the history of economic evictions case law and how it’s evolved, refer to the following articles:

• Tim Patterson, “Economic Evictions in a Residential Tenancy” (October 30, 2018)
• Jonette Watson Hamilton, “Constraining a Landlord’s Ability to Terminate a Residential Tenancy by Raising the Rent” (May 15, 2014)