Nova Scotians will pay more, longer under failed rent control policy
HALIFAX – Nova Scotia renters will continue to pay more with the Nova Scotia government’s decision to extend rent control through the end of 2027.
“Places that have rent control are always more expensive than places that don’t,” said Kevin Russell, Executive Director of Investment Property Owners Association of Nova Scotia. “We warned politicians in 2021 that this would happen. They didn’t listen. As a result, many rental housing providers sold their properties, displacing existing tenants, increasing homelessness and pushing up rents on new construction.”
In 2021, the independent Affordable Housing Commission recommended against continuing the rent cap after the COVID-19 state of emergency.
Russell acknowledged the government’s other proposed legislative changes to the Residential Tenancies Act help bring the province more in line with the rest of Canada.
“The reality is there are bad tenants who break the law, threaten other tenants and/or staff, damage property and refuse to pay rent. These abusers leave rental housing providers and other tenants helpless in the face of a residential tenancies system that isn’t properly enforced,” said Russell. “We appreciate the government’s efforts in ensuring provincial law will support safe and healthy communities in rental properties that respect those who play by the rules and are good and caring neighbours.”
The provincial government also struck the right balance in maintaining fixed term leases. Russell noted that surveys from IPOANS have shown that fixed term leases are used to house newcomers, students and those with poor or no credit histories. He said that ending or restricting fixed term leases in Nova Scotia would result in thousands of Nova Scotians losing their homes as rental housing providers
“Rental housing providers have been clear. No fixed term leases, no housing. Anybody pushing for ending or restricting fixed term leases are going to create more homelessness,” said Russell.
BACKGROUND ON FIXED TERM LEASES
IPOANS survey was conducted April 18-26, 2023, with 208 rental housing providers responsible for 43,711 rental units responding to the survey.
The survey included the following highlights:
- 55.6% of fixed term leases are for first-time renters;
- 87.24% of fixed term leases are being used for reasons other than Nova Scotia’s rent cap;
- Top five reasons cited for rental housing providers offering fixed term leases are risk management, allowing time to develop the tenant relationship, first time renters, limiting property damage, lack of tenant credit history;
- Tenants on fixed term leases are more likely to pay their rent and respect the Residential Tenancies Act; and
- More timely dispute resolution under the Residential Tenancies Act would reduce the use of fixed term leases.
IPOANS survey conducted in January 2024 with 185 rental housing providers, representing more 37,000 rental units the province, responding to the survey.
The survey concluded that eliminating or restricting fixed term leases would also result in rental housing providers – representing over 5,700 rental units – making the following changes in their operations:
- 24.31% would leave rental units empty;
- 55.8% would sell their property or properties;
- 29.83% would repurpose their property to another use; and
- 63.54% would stop future investments in rental properties/switching to other type of investments.
Questions?
Kevin Russell | Executive Director
O: 902.425.3572 | C: 902.789.0946 | E: kevin@rhpns.ca
211 Horseshoe Lake Drive, Suite 112, Halifax, NS, B3S 0B9
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