Hey all, I wanted to post an update on the residential tenancy changes that happen starting tomorrow (March 21, 2022). The ban on renovictions will be lifted in Nova Scotia. This is great news for those buying older rundown buildings (which unfortunately is a major portion of the rental inventory in Nova Scotia). I do want to caution you of two things. First be sensitive to the tenants that may have to re-locate. This can be a very scary situation in this rental market for tenants. Be flexible on the move out date and terms, and finally if you can afford it, be generous. I know that is not always possible on bigger projects, but really easy on the small stuff.
So, without further adieu, here are the changes and the rules (copied from the Nova Scotia Website):
Renovictions: Starting 21 March 2022 – Renoviction rules are in place to help protect tenants against evictions due to renovations. Protections include:
- landlords need to give tenants at least 3 months notice before they can evict tenants
- landlords need to give tenants 1 to 3 months rent as compensation for the eviction
- if a tenant agrees to end the tenancy, landlords and tenants need to complete Form DR5: Agreement to Terminate for Demolition, Repairs or Renovations
- if a tenant doesn’t agree to end the tenancy, landlords need to complete Form J: Application to Director to apply to end the tenancy
Landlords who don’t follow the renoviction rules may need to provide additional compensation for tenants. Additional compensation can include covering moving expenses and paying the difference between the tenants’ new rent amount and the old rent amount for up to 1 year.
Also a reminder, the rent cap is still in place (the following is copied from the nova Scotia website):
Starting 1 February 2022 – A rent cap is in place until 31 December 2023. For existing tenants, rent can only increase up to 2% each year. The rent cap applies to tenants who have a residential lease, including tenants who have a fixed-term tenancy (lease) and are signing a lease for an additional fixed-term in the same rental unit.
Any new or extra costs for services originally included in the lease (like parking) or removing services originally included in the lease (like electricity no longer being included in the rent) are also considered a rent increase and must be within the 2% rent cap.
Landlords can only increase the rent once in a 12-month period, on the anniversary date of the tenancy (lease). Landlords need to give tenants notice of a rent increase in writing. The renting guide for tenants and landlords outlines the rules landlords need to follow when giving notice to increase the rent.
The rent cap doesn’t apply to: tenants who have a commercial lease tenants signing a new residential lease, except tenants who have a fixed-term tenancy (lease) and are signing a lease for an additional fixed-term in the same rental unit tenants in public housing tenants of manufactured homes (mobile homes) in land-lease communities (mobile parks)
I hope this helps ad some clarity to the ever changing rules during these COVID times.
Until next time,
Design your Landlord Experience,
Michael P Currie
Landlord by Design
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