Section 121 — Agreement

121 (1) A landlord and a tenant may agree to increase the rent charged to the tenant for a rental unit above the guideline if,

(a) the landlord has carried out or undertakes to carry out a specified capital expenditure in exchange for the rent increase; or

(b) the landlord has provided or undertakes to provide a new or additional service in exchange for the rent increase.

(2) An agreement under subsection (1) shall be in the form approved by the Board and shall set out the new rent, the tenant’s right under subsection (4) to cancel the agreement and the date the agreement is to take effect.

(3) A landlord shall not increase rent charged under this section by more than the guideline plus 3 per cent of the previous lawful rent charged.

(4) A tenant who enters into an agreement under this section may cancel the agreement by giving written notice to the landlord within five days after signing it.

(5) An agreement under this section may come into force no earlier than six days after it has been signed.

(6) Section 116 does not apply with respect to a rent increase under this section.

(7) Despite any deemed acceptance of a rent increase under section 118, if a landlord and tenant enter into an agreement under this section, a notice of rent increase given by the landlord to the tenant before the agreement was entered into becomes void when the agreement takes effect, if the notice of rent increase is to take effect on or after the day the agreed to increase is to take effect.