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# Annual allowable rent increase amount: land-lease communities (mobile parks)

Landlords need to follow rules when increasing the rent in a land-lease community (mobile park). Rules include how much the landlord can increase the rent by and when the landlord can increase the rent.

Landlords of land-lease communities (mobile parks) have a number of rules they need to follow when increasing the rent. These guidelines provide information on the Annual Allowable Rent Increase Amount (AARIA), how to calculate the AARIA, using the AARIA to give a rent increase and applying the AARIA to a manufactured (mobile) home.

## Annual Allowable Rent Increase Amount (AARIA)

AARIA is the maximum amount landlords can increase their rent by each year in a land-lease community.

If the rent increase is less than the AARIA, the unused amount can be used in the next year's increase. Landlords need to use Form N: Application to Director - Rent Increase Greater Than Annual Allowable Rent Increase Amount to apply for a rent increase that includes the unused amount.

Year AARIA
2021 1.9%
2020 1.7%
2019 1.2%

## Calculating AARIA

The formula for calculating the AARIA is: (X + Y) ÷ 2.

X = annual average percentage change for the Nova Scotia Consumer Price Index for the calendar year immediately before the year the AARIA is published by the Residential Tenancies Program

Y = annual average percentage change for the Consumer Price Index for the calendar year immediately before the calendar year used for X

If the annual average percentage change for the Consumer Price Index for a given year is a negative value, the percentage change used to calculate the AARIA will be 0.0% for that year.

## Using AARIA to calculate rent increase

Example:

For Land-lease Community ABC, the rent per month was \$200 in 2019. If the landlord wants to increase the rent by the maximum AARIA for 2020, they need to multiply the current rent by the 2020 AARIA of 1.7%. This equals \$3.40 so the landlord can increase the rent by a maximum of \$3.40 to \$203.40.

Calculation:

(Current rent: \$200) x (AARIA: 1.7%) = \$3.40

\$200 + \$3.40 = \$203.40

## Rent increases higher than the AARIA

Landlords need to use Form N: Application to Director - Rent Increase Greater Than Annual Allowable Rent Increase Amount to apply for a rent increase greater than the AARIA.