Legislation to extend rent cap passes amid ongoing concerns about fixed-term leases

The Nova Scotia government's legislation to extend the cap on rental increases for two more years passed late Tuesday night at Province House, but opposition MLAs say a failure to close a loophole related to fixed-term leases means the cap cannot protect tenants to the necessary extent.

The cap will now be extended until the end of 2025. Service Nova Scotia Minister Colton LeBlanc has said the cap would increase to five per cent beginning in January, although that number is not spelled out in the legislation and is instead being left to regulations. That means cabinet will be able to change the cap without bringing it before the legislature for debate.

Liberal MLA Braedon Clark said it would be more appropriate for the government to give the power to set the cap to an independent third party, such as the Nova Scotia Utility and Review Board or another body with expertise on housing.

"I think that's a smarter option but, again, I think this reinforces what we've seen from this government, in particular, which is to consolidate power and think that cabinet knows best," he said during debate, which lasted until about 11 p.m.

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For Clark and New Democrat MLA Suzy Hansen, another problem with the bill is that it does not explicitly prohibit landlords from using fixed-term leases to avoid the rent cap.

A growing number of tenants in the Halifax area have reported being priced out of their apartments by landlords using fixed-term leases to raise rents by increases far outstripping the current cap of two per cent.

LeBlanc has said most landlords are not doing that, and he said on Tuesday night that officials in his department would continue to monitor the situation and see what could be done if abuse persists.

"This is not a closed book," he told members of the legislature.

'This is a problem'

But Hansen said tenants need certainty in a market with vacancy rates hovering around one per cent.The NDP has called for rent control, which would remain with a unit while allowing landlords to apply for larger rent increases in cases where their properties need renovations.

"This government is standing by while landlords use loopholes and other tactics to evict people, threaten their tenants or get around the rent cap," Hansentold the legislature.

"We hear this every single day in our offices, our [constituency assistants] hear it, we get it in emails. This is a problem."

Even with the increased cap, landlords have expressed concerns that it is not enough for them to cover rising costs related to inflation or do necessary repairs on their properties.

Awareness campaign coming for tenants, landlords

LeBlanc has said he hopes notice that the cap will increase in January will address the problem of some landlords misusing fixed-term leases.

In an interview after the bill passed, the minister said he and department officials would continue to monitor feedback from tenants and landlords about how fixed-term leases are being used. He remains concerned that some people are not aware of the rules related to leases they are signing.

"And that's certainly a driving force behind our decision to certainly advance a public awareness and education campaign to ensure that the changes we have made and continue to make are certainly well known publicly."