Halifax rooming house to raise rent 30% but only for tenants on income assistance

After living in a Halifax rooming house for close to 14 years, Barry Smith came home from work one evening in June to find a troubling letter taped to his door. 

The note from his new landlords said the monthly rent per room in the 29-unit house at 6273 North St. will increase to $700 per month on Aug. 1.

Smith currently pays $540 per month for his room, which includes a bed, table, sink, fridge, air fryer and microwave. His area of the building has no kitchen, and residents share a bathroom. 

The new rate is nearly a 30 per cent increase for Smith. Nova Scotia currently has a rent cap in place that bans any rent increase over two per cent until December 2023. It also states rent can only be increased once per year, and four months' notice must be given. 

"It's all money. It's greed, that's all it comes down to. They want more money for it," Smith said. 

The letter stated that the tenancy of those who do not pay the increased rent "will be terminated."

Smith, who works as a labourer, said he doesn't plan to pay the illegal increase, but also doesn't want to move at a time when there are so few affordable options. 

"Where would I go? To live in a tent in a city park? I've been here [almost 14] years, I've never missed a rent payment," Smith said. "I'm fighting this."

Shortly after he received the letter, Smith went to Dalhousie Legal Aid Service for help. 

According to public property records, the rooming house has been owned by CB MacDonald Properties Ltd. since 1983. Late last year, three men bought the company from a man named Alex Matheson and took possession of the North Street property in December 2021. 

When CBC News contacted the owners of the building for comment, a representative sent an emailed statement.

"We had been told that we were in a position to adjust the rents according to housing organizations we consulted, however we believe we may not have had all the information," the statement said. 

In a later email, the representative said the owners have decided to only increase the rent for the building's tenants who are on income assistance.

One of the owners said he estimates more than two-thirds of the building's occupants are on income assistance, and their social workers have approved the increase. He said the tenants not on income assistance, including Smith, will receive notice "within 24 to 48 hours" that their rent increase is cancelled.