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Residential Tenancies Act · short-term rentals

Calgary Landlord Rules 2026: Deposits, Rent, STRs

Short answer

Alberta's Residential Tenancies Act governs Calgary rentals: a security deposit of at most one month's rent, rent increases no more than once every 365 days with 3 months (monthly tenancy) written notice, and no cap on the size of an increase. Short-term rentals need a City business licence and collect Alberta's 6% tourism levy.

Rules and data checked

How big can a security deposit be?

A landlord can't collect more than one month's rent as a security deposit, and can't raise it later. It must be held in trust and returned with interest at the rate the province sets, less documented deductions, after the tenancy ends. Source: Alberta King's Printer, Residential Tenancies Act, SA 2004 c R-17.1 (security deposit s.43), effective May 14, 2026. Checked .

How often can you raise the rent?

Rent can rise once every 365 days, counted from the start of the tenancy or the last increase, with three months' written notice for a monthly periodic tenancy (12 weeks for weekly). Alberta has no rent control: "there is no limit on the amount" a landlord may raise the rent. A fixed-term lease can't be increased during its term. Source: Alberta King's Printer, Residential Tenancies Ministerial Regulation, AR 211/2004 (rent increase frequency), effective June 29, 2026. Checked . Source: Government of Alberta, During a tenancy: rent increases (no cap on amount). Checked .

What do short-term rentals need?

Renting for short stays in Calgary needs a City business licence: $289 new for your primary residence and $627 for any other property in 2026, with a fire inspection. The City limits each licence to one booking at a time. Hosts collect Alberta's tourism levy, 6% for bookings from April 1, 2026 (it was 4%). Source: City of Calgary, Business licence fee schedule 2026 (short-term rental), effective January 1, 2026. Checked . Source: City of Calgary, Short-term rental business licence rules. Checked . Source: Government of Alberta, Tourism levy (6% from April 1, 2026), effective April 1, 2026. Checked .

Two suite programs don't mix with short stays: homes that took the City's suite incentive committed not to licence a short-term rental for two years, and the insured suite refinance doesn't allow units rented for under 90 days.

What if the rental is a suite in your home?

A secondary suite must be registered with the City (free until December 31, 2026) and meet the building code for a separate dwelling: egress windows, ceiling height, interconnected alarms and fire separation. Source: City of Calgary, Suite Registry Bylaw 11M2018 (registration required), effective January 1, 2018. Checked . The suite rules page has the 2026 permit fees and what changed with the rezoning repeal.

What does an empty month do to the numbers?

The notice rules mean a tenant who leaves after a rent increase can leave a gap of a month or more. On the median detached house rented at $2,470, here is the cash flow at different amounts of vacancy over a year:

Median detached house, 20% down: cash flow by months empty per year
Months empty a yearVacancyCash flow / monthBreak-even rent
00.0%-$1,557$4,200
0.6 (CMHC's 5.0% vacancy)5.0%-$1,681$4,447
18.3%-$1,763$4,629
216.7%-$1,969$5,155

A month empty costs a full month's rent, and turnover adds cleaning, advertising and sometimes repairs on top. That is why a modest increase that keeps a good tenant can beat a bigger one that empties the unit: a 5% increase on $2,470 is $124 a month, or $1,482 a year, about half a month's rent.

How much can rent rise over five years?

Alberta has no cap on the size of an increase, only on how often. On the median detached house rented at $2,470, here is where the rent and the cash flow land after four yearly increases at three rates (costs held, which flatters the higher rates):

Median detached house, 20% down: rent and cash flow in year five by yearly increase
Yearly increaseRent in year 5Cash flow in year 5Extra rent over 5 years
0%$2,470-$1,681$0
3%$2,780-$1,417$9,163
5%$3,002-$1,228$15,580

Raising rent yearly helps, but slowly: at 5% a year it takes the whole five years to add about a fifth to the rent. The market decides whether a tenant stays at the new number, which is why the next table matters.

What does a tenant turnover cost?

Cost of one turnover on a $2,470 rental: lost rent plus an example $500 for cleaning, advertising and small repairs
Weeks emptyLost rentTurnover costMonths of a 5% increase to recover it
2$1,140$1,64013
4$2,280$2,78023
8$4,560$5,06041

A month's vacancy and turnover costs on this house take about two years of a 5% increase to earn back. A good tenant on a modest increase is often worth more than a bigger increase that empties the unit. The Residential Tenancies Act also requires a move-in and move-out inspection report; doing both properly is what lets you deduct damage from the deposit.

When can the next increase take effect, and when is notice due?

For a monthly tenancy that runs from the first of the month, an increase can take effect 365 days after the last one, and written notice has to be given at least three full tenancy months before. Three examples:

Monthly tenancy from the 1st: earliest next increase and the last day to give notice
Last increase took effectEarliest next increaseGive written notice by
March 1, 2026March 1, 2027November 30, 2026
June 1, 2026June 1, 2027February 28, 2027
September 1, 2026September 1, 2027May 31, 2027

A notice given too late can't make the increase take effect sooner: the three full months still have to pass. Rent in a fixed-term lease generally stays as written until the term ends. Keep a copy of every notice with the date it was delivered.

What does a short-term rental licence add to the monthly numbers?

Calgary's 2026 short-term rental licence is $289 a year for a primary residence and $627 otherwise, about $24 and $52 a month. The 6% tourism levy is charged to guests on top of the nightly rate, but it has to be collected and remitted, and it makes the price guests compare higher than the nightly rate you set. Short stays also need furnishing, cleaning between guests and higher insurance, none of which a long-term lease asks of you. Model a short-term plan as a business with those costs in it, not as a lease with a higher rent.

How does it work on a real example?

A 5% rent increase on the median Calgary house

The median detached house rented at the $2,470 average asking rent, a year into a monthly tenancy.

A 5% rent increase on the median Calgary house: inputs, steps and result
Current rent$2,470
Earliest increase365 days after the last onewith 3 months (monthly tenancy) written notice
Increase5% (no legal cap in Alberta)
New rent$2,594
Cash flow before-$1,681 a month
Security deposit you may holdup to $2,470one month's rent, set at the start of the tenancy
Cash flow after the increase-$1,575 a month$105 better, if the tenant stays

Open this example in the calculator →

Mitey, seated, reads a small field book.
Mitey reads the Act's notice rules before drafting a rent-increase letter.In a cash-flow model, rent growth is your assumption. Alberta's rules let you raise rent yearly, but the market decides whether tenants stay.

What this means for you

  • Diarize the 365 days from the last increase and send notice three tenancy months ahead.
  • Hold the deposit in trust and return it, with any deductions itemized, within the Act's deadline.
  • Short-term renting a suite needs a licence, the levy and the suite to be legal; model it as a business, not a lease.

What do the terms in this guide mean?

Periodic tenancy
A lease that renews itself week to week or month to month, with no end date.
Security deposit
Money held against damage or unpaid rent; in Alberta it can't exceed one month's rent.
Tourism levy
Alberta's tax on short-term rental stays, 6% since April 1, 2026, collected from guests.

Frequently asked questions

Is there rent control in Calgary?

No. Alberta allows one increase every 365 days with proper notice, and there is no cap on the amount.

How much can a landlord charge for a damage deposit in Alberta?

No more than one month's rent.

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