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N.B. landlords openly discussed ways around rent caps in video posted to YouTube

N.B. landlords openly discussed ways around rent caps in video posted to YouTube

CBC
Thursday, April 28, 2022 3:03 PM GMT

New Brunswick landlords and property managers facing a limit of 3.8 per cent on rent increases for 2022 have been discussing potential ways to escape the restriction.  

Ideas include asking tenants personally to agree to higher rents, introducing fixed-term leases that force tenants to move on when they expire and proposing renovations to rent-controlled units significant enough to require tenants to vacate, whether the renovations happen as planned or not.

In an online talk posted to YouTube earlier this month by the Moncton Real Estate Investing Organization, more than two dozen apartment building owners and managers heard a discussion about ways to get around rent caps, an exercise they believe government knows about.

"They do know what landlords are trying to do. They know the loopholes that we're trying to find," Moncton property manager Tony LeBlanc, who led much of the discussion, said during the 77-minute online forum.

"Will they eventually start closing them? I wouldn't be surprised. When it's politicians in play, we just really don't know what the end game is."  

In its March 22 budget, the Blaine Higgs government announced plans to cap rent increases.

That followed a series of highly publicized incidents of rental properties being sold to investors and of tenants being asked to pay 20, 40 and even 90 per cent more for their apartments. 

"We have heard the tenants' concerns and are putting in place more measures to help ease the pressures they are facing," said Service New Brunswick Minister Mary Wilson, who is responsible for landlord and tenant issues.  

Legislation has since been introduced to implement a one-year limit of 3.8 per cent on rent increases, retroactive to January 1, along with other measures to prevent some kinds of evictions.

"The changes we are introducing to temporarily cap rent increases and strengthen regulations for ending tenancies will further help tenants facing rising rents, increased costs and low vacancy rates," said Wilson.

The proposed changes have upended many apartment owners' plans to raise rents, especially those who recently bought buildings in New Brunswick at premium prices or renovated buildings on the expectation of being able to attract higher-paying tenants.

WATCH | Landlord asks about evicting tenants for 'major' renovations

LeBlanc told the Moncton meeting he has a client who recently bought a six-unit building and then spent $150,000 on upgrades.

He said he plans to ask tenants directly, on the owner's behalf, to agree to increases above 3.8 per cent because of that.

Read full story on CBC
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