NLIS 3
April 11, 2000
(Government Services and Lands)

I would like to advise honourable members that government intends to introduce a bill during this Session of the House of Assembly to enact a new Residential Tenancies Act.

I believe the proposed changes being put forward will be acceptable to the vast majority of landlords and tenants. We have consulted on these issues and we have received a positive response. I look forward to a full and thorough debate of the bill.

Under the proposed legislation, a landlord will not be able to increase rent during any fixed-term tenancy or during the first 12 months of a month-to-month tenancy. This will be welcome news for tenants.

The proposed legislation would also provide for more flexibility in the periods for term leases. A term lease would be permitted for any term of six months to one year. The current act only provides for a term lease of one year. The change to permit terms of six months to a year will be especially beneficial to students who often wish to rent for shorter time periods.

Under the proposed act, tenants would also be given improved rights when apartments are converted to condominiums. For example, in circumstances where a unit is converted to a condominium, a tenant, who has resided in the premises for five or more consecutive years, will be given the right of first refusal to purchase.

Another proposed change would see the maximum security deposit increased from one-half to three-quarters of a month�s rent. This would assist many small landlords, such as those with basement apartments, in making repairs as result of damages made by vacating tenants.

Whenever we introduce proposed legislation that affects different groups, we must achieve balance. Such is the case with this proposed change. I would also like to point out, that, under proposed changes, the right of landlords to ask for the last months� rent in advance will be removed.

Under the current system, we often receive complaints from tenants and landlords that it is costly to collect amounts owing to them after receiving an award in their favour from the Residential Tenancies Division. Under the proposed act, awards for claims of up to $3,000 would be filed with the Small Claims Court, rather than at Supreme Court, substantially reducing fees for enforcement.

These proposed changes and the amendments we brought in during 1997 will provide us with an effective act that fairly balances the interests of landlords and tenants.

2000 04 11                                                         2:15 p.m.