The incoming Residential Tenancy Act, set to become law sometime in the Spring of 2023, is the first overhaul of tenancy laws on the Island in over 30 years.
Some important items of note are listed below:
- Rent for most tenants probably won’t increase in 2023
- Tenants need to be notified that the rent increases that were previously announced for 2023 have been nullified.
- The maximum allowable rent increase will be three per cent starting in 2024
- Tenants who are asked to leave due to required renovations have the right of first refusal to the space once renovations are completed.
- The new tenancy act will set a maximum $10,000 penalty for persons found to have ignored tenancy laws.
- An amendment to the new act allows for an exception on renovation-related evictions, where renovations are necessary to protect the property or health of tenants.
- Tenants will be prohibited from charging sub-letters more than their monthly rent.
- In-person inspections of units will be required on the first day of tenancy. If a tenant does not participate after two attempts, the landlord must provide a written copy of the report.
- In cases where a tenant has experienced domestic violence and wishes to leave a unit, landlords are prohibited from entering to show the unit until the unit has been vacated. Landlord entry will also be limited in cases in which tenants have experienced discrimination from the landlord.
- The new act allows cabinet to appoint the director of residential tenancy.
For more information on these changes, click HERE.