Halifax real estate listings advertising fixed-term leases as financial asset for buyers

The use of fixed-term leases in Nova Scotia has been a contentious issue, with some real estate listings touting them as a financial benefit for potential buyers. While the government has no plans to regulate this type of lease, housing advocates have raised concerns about landlords using fixed-term leases as a way to circumvent rent cap legislation.

A recent CBC News investigation into multi-unit residential buildings for sale in Halifax revealed that at least 11 listings mentioned tenants on fixed-term leases. Some listings boasted of double-digit returns with rent increases on the horizon, while others highlighted the potential for increased profits as tenants turn over.

Tim Allenby, chair of the Dartmouth chapter of tenant group ACORN, expressed concern over this marketing tactic, noting that landlords benefit from fixed-term leases at the expense of tenants. Fixed-term leases, as defined by Nova Scotia’s Residential Tenancies Act, give landlords the power to decide whether or not to offer existing tenants a new lease once the fixed period expires.

The Nova Scotia Association of Realtors declined to comment on why fixed-term leases are being advertised as an asset for property buyers. However, Rental Housing Providers Nova Scotia defended the use of fixed-term leases as a way to mitigate risk when renting to tenants with limited credit history or references.

Kevin Russell, executive director of Rental Housing Providers Nova Scotia, cited research showing that the majority of landlords use fixed-term leases for risk management and establishing relationships with tenants. However, he did not address concerns about landlords using fixed-term leases to increase profits or bypass rent cap legislation.

The government, through Residential Tenancies Act minister Jill Balser, expressed disappointment over the use of fixed-term leases as a marketing tactic. While Balser encouraged tenants to be informed about their lease options, she confirmed that there are no plans to address the abuse of fixed-term leases by landlords.

Tenant and landlord groups have called for the government to conduct its own research on the use of fixed-term leases. Without data on the extent of the problem, advocates argue that landlords will continue to exploit the loophole created by the government.

Overall, the issue of fixed-term leases in Nova Scotia remains a complex and contentious one, with implications for both tenants and landlords. As the debate continues, it is essential for the government to consider the interests of all stakeholders and work towards a fair and equitable solution.