NB will soon have new rent rules, here’s what you need to know

The Government of New Brunswick is expected to pass significant amendments to the Residential Tenancies Act by mid-June.

Essentially, two measures are planned, namely a ceiling on rent increases and changes related to the rules concerning evictions.

What will be the allowable rent increase?

Landlords will be able to request rent increases, but they must not exceed 3.8%. Until now, there was no cap on rent increases in New Brunswick.

However, this maximum rent increase only applies to tenants who are already in their dwelling.

When there is a change of tenant, the landlord has the right to increase the rent further between the two tenants. He must then respect the ceiling.

During what period will this cap be imposed?

The cap will be in effect, retroactively, from January 1, 2022, and will remain in effect until December 31, 2022.

However, it will be necessary to wait for Bill 96, tabled in March, to pass third reading and receive royal assent for the cap to be officially in place.

What will happen after December 31, 2022?

There will be no cap on rent increases after December 31, unless the government passes another bill.

Minister of Service New Brunswick, Mary Wilson, said the situation would be reassessed at the end of the year. However, in March, the minister said the government did not want to impose a permanent cap on rent increases.

If a landlord makes renovations, can they increase the rent above the ceiling?

No. In an email dated March 23, the Department of Service New Brunswick clarified that even if renovations are made to a dwelling or building – and this increases the value of the dwelling – the landlord cannot request more than 3 .8% rent increase in 2022.

What if a tenant received a bigger raise?

The law provides that they will be reimbursed by a credit on the first rent they will pay after the adoption of the legislative changes.

A credit could also be calculated on the following rents, if everything has not been repaid the first time.

What if a tenant paid too much but moved out?

The tenant can request a refund of the overpayment from his former landlord.

What can a tenant do if the landlord refuses to reimburse him?

Tenants can contact Service New Brunswick either directly in person, by email, or by calling the general number 1-888-762-8600.

When can a landlord evict a tenant?

In four specific cases:

• if the landlord or a member of his family wants to live in the dwelling occupied by the tenant;
• if the landlord wants to use the dwelling for purposes other than residential;
• if the owner intends to make major renovations, which can only be done if the dwelling is vacant;
• if the tenant is an employee of the landlord, such as a janitor, and the employment has ended.

Which tenants are protected against eviction?

All tenants are protected. Prior to the legislative changes, the law only provided protection against eviction for tenants who had occupied their unit for at least five years.

This restriction was not included in the new legislative provisions.

When does the new eviction provision come into effect?

The new eviction rules take effect retroactively to March 22, 2022.

However, the law does not provide for an expiry date, as is the case for the cap on rent increases.

So, unless there are legislative changes, these rules are permanent.

What happens if a landlord evicts a tenant without a valid reason?

If two months after having evicted a tenant, the landlord or a member of his family does not live in the accommodation, or if major repairs have not started, the tenant can request financial compensation.

To do this, he must go to the Residential Tenancies Tribunal.

What happens if a tenant causes problems?

The landlord can always go to the Residential Tenancies Tribunal, which can enforce the tenant’s obligations. If the tenant does not respect them, the court can order his eviction.

Does a landlord have the right to evict a tenant for other reasons?

Yes. A landlord can apply to the Residential Tenancies Tribunal to terminate a tenancy for various reasons.

For example: if the tenant does not pay his rent, if he does not repair damages he has caused, if he creates disturbances, if he does not keep the accommodation reasonably clean, if his behavior may pose risks to the health and safety of other tenants.