N.B. poised to adopt rent cap, but advocates warn loopholes remain

As a tenants' rights group warns about loopholes in New Brunswick's proposed rent cap, the province's housing minister has promised to address any remaining issues later on. 

Housing Minister David Hickey tabled rent cap legislation just two weeks into the Liberal majority government mandate. 

While Nichola Taylor, chair of New Brunswick's ACORN chapter, says it's a necessary step, she says that protection won't work as intended without other changes to the Residential Tenancies Act. 

"We're actually seeing that in Nova Scotia right now because they have a rent cap in place, but they don't have strong rent control laws," she said. 

N.B. ACORN submitted a response to the rent cap legislation asking New Brunswick to strengthen or add controls in several areas, including "renovictions" — where a landlord evicts a tenant for renovation of the unit — tenant harassment and fixed-term leases. 

"It is a step, but you have to build on that step," she said of the rent cap.

"I suspect, if we don't have strong rent control laws, we're going to see more and more leases turn to fixed-term leases ... I think we'll also see a lot more landlords trying to move family members in.... We might see more landlord intimidation, more so than what we've seen before."

A fixed-term lease automatically ends on an agreed-upon date. That allows the landlord to change the price to rent the unit, regardless of the cap. 

That arrangement might make sense for a student or other temporary resident, Taylor said.

What is the fixed-term lease ‘loophole’ tenants are worried about?

3 months ago

Duration 3:07

Tenant advocates are decrying the use of fixed-term leases, saying it creates a loophole in the province’s current rent cap. Landlords, on the other side of the issue, say these arrangements have their place. The CBC’s Nicola Seguin explains.

But applied to a longer-term tenancy, she said, it can mean the resident sees in effect an increase greater than the rent cap if they want to stay in their unit. 

Taylor says N.B. ACORN has also seen cases where landlords exercise their ability to evict a tenant to move a family member in, only for the tenant to see their unit listed online for rent at a higher cost. 

In British Columbia, Taylor said, "cash-for-keys" is another issue that popped up after a rent cap was implemented. 

"They go up to the tenant and say, 'I'm going to give you this sum of money, and you give me your apartment,' so basically it's like a bribe," she said. 

"We just don't want that widespread happening, especially as low-to-moderate income tenants are usually some of the most vulnerable in our society." 

In an interview, Hickey wouldn't say whether any of the suggestions in the N.B. ACORN submission would be implemented.

However, he said he hopes to hold consultations over the next year and introduce more changes to the act. 

"There are long-term things that we need to do to better housing in New Brunswick, we're not dusting our hands of it after a rent cap," Hickey said. "Our job is only just starting."

The rent cap would take effect on Feb. 1, Hickey said, if passed as expected by the Liberal majority in the legislature.