New Residential Tenancies Act comes into effect September 1

Ernest McLean, Minister of Government Services and Lands, today announced that the new Residential Tenancies Act, passed during the last Session of the House of Assembly, comes into effect tomorrow, Friday, September 1.

Mr. McLean said: "This act fairly balances the interests of landlords and tenants. We have consulted on these issues and we have received a positive response."

Under the new act, 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. The minister said that this will be welcome news for tenants.

The act provides more flexibility in the periods for term leases. A term lease will now 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.

Tenants now have increased rights when apartments are converted to condominiums. For example, in circumstances where a unit is converted to a condominium and a group of tenants are asked to vacate, 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 change sees the maximum security deposit increased from one-half to three-quarters of a month�s rent. Under the old system, Government Services and Lands often heard concerns from tenants and landlords about the cost of collecting amounts owing to them after receiving an award in their favour from the Residential Tenancies Division. Under the new act, awards for

claims of up to $3,000 are to be filed with the Small Claims Court, rather than at Supreme Court, substantially reducing costs for landlords and tenants. Mr. McLean said, " I believe that the changes outlined in this new act will be favourably received by both landlords and tenants."

Media contact: Robert LeGrow, Residential Tenancies Division, (709) 729-5809.

Note to Editors: Copies of the new act are available from the Residential Tenancies Division, the Office of the Queen�s Printer, Government Service Centres and on the Internet at www.gov.nl.ca/hoa/statutes/r14-1.htm

2000 08 31 12:10 p.m.