The provincial government has introduced legislation to cover up what they describe as a major loophole in fixed-term leases.
The new legislation will disallow landlords from being able to bypass annual rent control, meaning renters will now be protected against massive rent hikes at the end of a lease.
“This will give renters the security they deserve and help bring integrity to the rental industry, which is good for landlords,” says Municipal Affairs and Housing Minister Selina Robinson.
If passed, the amendments will restrict a landlord’s ability to use a vacate clause in fixed-term tenancy agreements to certain circumstances only; and limit rent increases between fixed-term tenancy agreements with the same tenant to the maximum annual allowable amount (currently 2% plus inflation).
“These amendments will restrict a landlord’s ability to use the vacate clause, except in very specific circumstances,” Robinson explains.
“It will also ensure tenants with fixed-term agreements face no more than the maximum allowable rent increase.”
The new rules will apply to both new and existing tenancy agreements.
“We are protecting the rights of renters who, for too long, have been left open to unfair and unjustified rent increases,” says Robinson.
The legislative amendments will also streamline the dispute resolution process for security deposit returns.
If a security deposit is not returned by a landlord, the tenant will be able to apply for a monetary order through an expedited process allowing for tenants to get their money back in three weeks instead of six months.