Photo courtesy photos-public-domain.com
The New Brunswick government’s plan to implement a three per cent rent cap starting February 1, 2025, is drawing concern from apartment owners in the province.
Willy Scholten, president of the New Brunswick Apartment Owners Association, expressed frustration, noting that while the cap aims to protect tenants, it ignores the financial pressures facing property owners.
“We’ve been talking with the government about balance,” Scholten said. “This won’t work if we only have rent control without addressing the cost side of the equation—especially taxation, which is our major cost.”
Scholten highlighted rising property taxes as a key issue. New Brunswick landlords face a tax rate 1.5 times higher than in other Atlantic provinces, with assessments climbing by 70 per cent over the past five years.
“If costs rise 10 per cent but rent can only increase by three per cent, we’ll see fewer new buildings constructed and existing ones falling into disrepair,” Scholten said.
The government has committed to reviewing property tax policies, but changes are not expected until 2026.
Scholten criticized the timing, emphasizing the need for temporary measures to bridge the gap.
“The rent cap starts in February, but property tax reform won’t kick in for years. That disparity could have a real impact on housing availability and quality,” he said.
Under the legislation, landlords must give tenants six months’ notice before increasing rents and can only raise them once annually. Any hikes exceeding three per cent will require approval from the Tenant and Landlord Relations Office.
While the government argues the rent cap will protect tenants and prevent sudden increases, Scholten believes long-term solutions must include addressing taxation.
“Assessments and tax rates need to be legislated together so that increases are fair,” he said.
The rent cap program will be reviewed annually, with the government stating it remains committed to ensuring housing affordability for all New Brunswickers.
