Yukon's residential rent index and ending a tenancy

The 2023 Confidence and Supply Agreement (CASA) renews the Government of Yukon’s commitment to index residential rent increases, with changes that buffer against the impact of unusually high or low inflation as measured by the Consumer Price Index (CPI).

Under the CASA, the Government of Yukon also committed to requiring landlords to have a reason for ending a tenancy. Landlords may now only rely on the sections of the Residential Landlord and Tenant Act (the “Act”) that were often referred to as “no cause evictions” if they or their immediate family member will occupy the rental unit. Otherwise, all of the other reasons for ending a tenancy remain in place. For example, these include breaching the tenancy agreement or the Act, condominium conversion or change in use, non-payment of rent, or any of the “for cause” reasons (i.e., disturbing another tenant, causing or not repairing damage, paying rent late, and many others). You can find a table listing the reasons for ending a tenancy and the notice requirements on this page below.

Summary

After May 15, 2024, Yukon landlords may increase rent by up to 4.9%.

The rent index introduced a framework for adjusting rents with the aim of achieving stable and affordable housing for all Yukoners. Our goal is to allow landlords and tenants to better plan for the future with reasonable and predictable increases over time. However, rent increases are not mandatory. The rent index only applies for landlords seeking to increase rent.

How we calculate the rent index

The annual Consumer Price Index (CPI) for Whitehorse is used to calculate allowable rent adjustments. The Yukon Bureau of Statistics calculates the CPI every year.

The CPI reflects changes in consumer prices. It measures price changes by comparing average costs of fixed goods and services over time.

Landlords can increase rent up to the CPI for Whitehorse for the previous calendar year. There are two exceptions for years when inflation is unusually low or high.

Rents can be increased by up to 2% if the CPI for the previous year was less than 2%. On the other hand, rents cannot be increased by more than 5% if the CPI for the previous year was greater than 5%. Within the 2% - 5% parameters, rent increases can reflect the previous year’s CPI.

In 2023, the CPI was 4.9%. This means that as of May 15, 2024, landlords in the Yukon may increase rents up to 4.9%.

The rent index and housing agencies

If a housing agency ties a rent increase to the income of a tenant or their family, the rent index does not apply. Housing agencies under the Act include Yukon Housing Corporation, Grey Mountain Housing Society and Kwanlin Dün First Nation. 

Summary

The 2023 CASA Agreement, implemented through the Residential Landlord and Tenant Act Exemption Regulation (Exemption Regulation)  requires that the sections of the Act that allow a landlord to end a tenancy “without cause” are exempted from all tenancy agreements. The regulation therefore requires landlords to have a reason for ending a tenancy. The “no cause” provisions can only be used if the landlord or their immediate family will occupy the rental unit.

Landlords may still end a tenancy for cause as laid out in the Act, which includes among others, non-payment of rent, noise and disturbance, or property damage. Landlords may also end a tenancy for a material breach of the tenancy agreement such as smoking in the rental unit if it is specified as non-smoking. See the table below for more information about how to end a tenancy.

A tenancy may end at any time if the landlord and tenant agree in writing to end the tenancy.

Notices already served

The Exemption Regulation does not apply to notices to end tenancy that were served before January 31, 2023. If a landlord served a tenant with a notice to end tenancy before the Exemption Regulation took effect, the normal processes under sections 47 and 49 apply.

“Immediate family” member

A landlord may now only end a tenancy under sections 47 or 49 if they or their immediate family member will occupy the rental unit. “Immediate family” is not defined in the Act or regulations. While the immediate relatives in the family unit can be presumed to be included, we recognize that many families do not reflect the traditional nuclear family structure. If a dispute arises, the parties may need to describe the nature of the relationship in their submission to the Residential Tenancies Officer. The Officer must weigh the evidence on a case-by-case basis.

Landlord or their immediate family will “occupy” the rental unit

The term “occupy” is also not defined in the Act or regulations.  

If there is disagreement between the landlord and tenant about whether this criteria is met, either party may apply for dispute resolution.  The landlord and tenant will both have the opportunity to provide submissions and evidence to support their position before the Residential Tenancies Officer makes a ruling.

Please take note that a tenant will have 10 days to apply for dispute resolution once they are served with a notice to end tenancy. After 10 days, the notice to end tenancy is presumed to be accepted.

Landlord to sell the property or change its use

Converting the use of the property to a condominium, or in the case of mobile home parks, converting all or part of the park to any use other than a mobile home park, are valid reasons for ending a tenancy under the Act.

The sale of property is not an independent reason for ending a tenancy under the Act. If the landlord needs to occupy the unit prior to selling, the sale involves a change in use, or the tenant agrees, the landlord may be able to end the tenancy prior to completing the sale. Otherwise, a landlord may avail themselves of any of the “for cause” reasons for ending a tenancy or canvass whether the new buyer wishes to continue the tenancy.

Requirements for a landlord to end a tenancy under the Act

*Month = a clear month beginning on the day before rent is due

** To end a tenancy “for cause” under section 52 of the Act, a landlord must provide the tenant with written notice of the problem and a reasonable opportunity to correct it before serving the Notice to End Tenancy is served

How much can a landlord increase rent under the new rent index?​

As of May 15, 2023, rent cannot be increased by more than the percentage change in the Consumer Price Index (CPI) for the preceding calendar year. There are two exceptions setting the minimum and maximum allowable increase of rent:

• If the CPI for the previous year was less than 2%, landlords may increase rent by up to 2%
• If the CPI for the previous year was greater than 5%, landlords cannot increase rent by more than 5%.

Within the 2-5% range, rent increases should reflect the CPI of the previous year.

A landlord can increase rent after the first 12 months of the tenancy and only once a year after that.

A landlord must give a tenant 3 months’ notice on the approved form of a rent increase.

For example, if a landlord served their tenant with a notice to increase rent on February 28, 2023, and rent is due on the first of the month, the rent increase takes effect on June 1, 2023.  

Are a rental unit’s utilities included?

If a tenancy agreement excludes utilities from the rent, the utilities are not subject to the rent index. If a tenancy agreement includes utilities as part of the rent, the total amount must follow the rent index.

Can a landlord raise rent between tenancies?

New agreements between same landlord and same tenant

If a tenancy ends and the same landlord and tenant begin a new tenancy in the same or similar rental unit, the landlord is still bound by the rent index. This is true even if the landlord and tenant sign a new tenancy agreement.

There are some exceptions. Please contact the Residential Tenancies Office for more information if this situation applies to you.

New tenancies

When a new tenancy begins with a new tenant, the landlord and tenant will agree on a rental rate.  The rental rate at the beginning of a tenancy is not tied to the rent index.

What should a tenant do if a landlord increases the rent by more than the rental index?

The Residential Tenancies Office encourages parties to resolve their difference informally. If they are not able to, they may file an application for dispute resolution.

Does the rent index apply if there is no written tenancy agreement?

Yes, even if there is no written tenancy agreement, all of the rights and obligations in the Act and regulations apply. This includes the rent index.

Do landlords and tenants need a written tenancy agreement?

A landlord must prepare a written tenancy agreement for every tenancy they enter into. This is required in the Act.

Does the rent index apply to all rentals?

Yes. The rent index applies to all tenancies under the Act.

Does the rent index apply to the rental of a room in a house with shared bathroom and kitchen?

No. The Act does not apply to tenants who share bathroom or kitchen facilities with the owner.

Does the rent index apply to vacation rentals?

No. The rent index does not apply to vacation or holiday rentals such as hotels or Airbnb unless the rental is for more than 6 months.

Does the rent index apply to fixed-term tenancies?

It depends.

In a fixed term tenancy agreement, the landlord and tenant must agree to an end date. The agreement should indicate whether at the end date, the tenant will move out, or the tenancy continues (either as a periodic or fixed term tenancy). If the agreement does not specify what will occur on the end date, the tenancy is deemed to renew as a month-to-month tenancy on the same terms.

If the tenant is required to move out at the end date and a new tenancy agreement is entered into with a new tenant, the agreed upon rental rate for the new tenancy agreement will not be tied to the rent index.

If the tenancy continues, either as a fixed term or periodic tenancy, the original and successive tenancies are deemed to be a single tenancy. In this case, the rent index will apply as a continuous tenancy.

Does the rent index affect which fees can be charged?

Permitted and prohibited fees are listed in the Act and Regulations and have not been affected by the new regulations.

What will happen if a tenant is removed in 14 days,  but a subsequent decision by the RTO says they could have stayed?

The most appropriate course of action will be determined by the adjudicator on a case-by-case basis. The Act does not require one particular outcome. A monetary order can be made if the facts warrant it.

What will happen if a tenant overstays while challenging a notice?

This would be adjudicated on a case-by-case basis. It is possible the adjudicator may order the tenant to compensate the landlord for costs incurred related to another tenant being unable to move in, but this would depend on the merits of each case.

If you have more questions about the residential rent index or reasons for ending a tenancy, contact us:

Residential Tenancies Office

Email: rto@yukon.ca

Phone: 867-667-5944, toll free in the Yukon 1-800-661-0408, extension 5944.

Physical address: 307 Black Street, 1st floor, Whitehorse