New Brunswick’s proposed temporary rent cap for 2022 is now officially in effect.
The proposed legislation put forward earlier this year received Royal Assent on Friday.
That means rent increases are now capped at 3.8 per cent from Jan. 1 until Dec. 31.
Landlords cannot increase rents above this or change a lease unless agreed to by the tenant and landlord, including buildings that have changed ownership.
Previous leases signed by a tenant and their former landlord will continue to be legally binding under the new ownership.
“We have put measures in place to help alleviate the pressures tenants are facing with low vacancy rates and increased costs,” Service New Brunswick Minister Mary Wilson said in a news release.
The Residential Tenancies Act has also been changed to give all tenants the same protection long-term tenants already had surrounding terminations without just cause.
As such, a tenancy could only be terminated for one of the following legislated reasons:
- a relative will become an occupant of the unit
- extensive renovations will be undertaken requiring the unit be vacant
- an employment contract has ended
- the unit will be used for reasons other than a residential premise
The province said any tenant served a notice of termination should apply to the Residential Tenancies Tribunal to ensure the notice is in line with the new sections of the law.
Terminations that do not meet the requirements will be denied, and landlords failing to comply with these changes could be fined. Tenants facing losses due to their tenancy being ended without just cause can apply for compensation from the landlord.
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