ALERT – Rent Control Still A Clear & Present Danger
On August 17, Nova Scotians elected a new government that campaigned on building more rental housing stock supply as the solution to the lack of affordable housing, not rent control. The Gardner Pinfold Consulting’s Rental Housing Affordability in Nova Scotia report commissioned by The Investment Property Owners Association of Nova Scotia (IPOANS) and the Nova Scotia Affordable Housing Commission final report came to the same conclusion.
Rent control will continue to dog the industry as long as a small percentage of Nova Scotia’s 6,000 landlords keep serving tenants with egregious rent increase renewals with caveats. If left unchecked, there is a high probability the new government will extend the 2% Rent Cap.
As a result of IPOANS taking a higher media profile during the election, aggrieved tenants have directly emailed IPOANS copies of their February 2022 renewal notices. Some of these renewals include rent increases of up to 130%, with a caveat that if the 2% Rent Cap remains in place, the proposed rent increase won’t go through.
We understand the 2% Rent Cap initiated in September 2020 has put tremendous stress on residential property investments but now is not the time for over-the-top rent increases. Apartment Owners/Managers must skillfully manage their way through this dilemma until some form of normality returns to the market. If not, the long-term ramifications of permanent rent control will severely impact residential investment property assets.
Here is our ask of residential investment property owners receiving this email:
- Stop sending out renewal notices with double-digit or triple-digit rent increases with a rescind caveat, until we have a clear timetable from the government on ending the rent cap.
- Get the message out to your network that what is occurring will not end well for the industry.
If there are any questions, contact me by email, kevin@ipoans.ca or call 902.789.0946.
Regards
Kevin Russell