The provincial government introduced legislation on Thursday that aims to close a major loophole in fixed-term leases.
Housing Minister Selina Robinson says the new amendments to the Residential Tenancy act and Manufactured Home Park Tenancy Act will mean landlords can no longer use the loophole to bypass annual rent control, meaning renters will now be protected against massive rent hikes at the end of a lease.
If Passed, The Amendments Will:
- Restrict a landlord’s ability to use a vacate clause in fixed-term tenancy agreements to certain circumstances (i.e. moving in a family member or renovations)
- Limit rent increases between fixed-term tenancy agreements with the same tenant to the maximum annual allowable amount (currently 2% plus inflation).
The new rules will apply to both new and existing tenancy agreements.
Amendments Also Help Dispute Resolution
The legislative amendments will also streamline the dispute resolution process for the return of security deposits. If a landlord doesn’t return a security deposit, a tenant will be able to apply for a monetary order through an expedited process. This will ensure that tenants get their deposits back more quickly – three weeks instead of waiting up to six months.