Rent control not among new tenancy laws
Amendments to the Residential Tenancies Act do not include limits on rent hikes
James Goldie
Northern News Services
Tuesday, September 9, 2015
NWT
Changes to the NWT's tenancy laws officially went into effect Monday, and while some of these changes aim to protect renters, none will address the issue of climbing rental rates in Yellowknife.
Rental officer Hal Logsdon has not recommended amending the Residential Tenancies Act to include rent control because he thinks it would be too costly to implement and could make Yellowknife less attractive to potential building developers. - James Goldie/NNSL photo
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With the passing of Bill 42 in May, the Residential Tenancies Act underwent a series of amendments targeting everything from rent receipts to a tenant's ability to break their lease due to domestic violence.
However, for Cynthia Grandjambe these changes fail to address the most pressing issue for many renters: cost.
"I've been pushing for rent control," she said. Grandjambe left her last apartment because the increases were becoming more than she could afford. "My rent was going up pretty well $50 every six months."
Legally landlords can only increase a tenant's rent once every 12 months, and must provide the tenant with 90 days notice of the impending change. However, the rate of increase is left to the landlord's discretion.
Rent control, which is legislated in five provinces, would restrict the amount by which landlords could increase rent each year.
Phone calls to local landlords requesting an explanation of their rent increase policies were not returned by press time.
Hal Logsdon, a rental officer in Yellowknife, said that calls for rent control are not too common but they do come up from time to time.
"We frequently have people say, 'Well, why is my rent going up?' and I guess the answer to that is as long as it goes up in accordance with the Act ... the landlord can charge whatever they want. The market basically sets the rental rates," he said.
In past annual reports, Logsdon has not recommended the territory amend its tenancy act to incorporate rent control because in his opinion the market is "probably the best setter of rents."
"The whole mechanism of rent control is a very burdensome process administratively," he said. Landlords would need to be monitored, rates set every year or certain period, there would have to be means of enforcement -- all of which would require more staff.
"It would be much more burdensome for us in smaller jurisdictions," he said.
Logsdon also said that in his view, rent control could make Yellowknife appear less profitable to future housing developers.
Robert Hawkins, MLA for Yellowknife Centre, said his constituents only bring up the subject of rent control every so often.
"It's not (a request) you get every day," he said. "I've heard less concerns about (needing) rent control because rents haven't spiked."
Hawkins said he hears more complaints about the high cost of rent in general than annual increases being unmanageable.
"Rents are expensive and that's been the message," he said.
"We have to be cognizant of the costs the landlord carries by all means. And they are a business too, and that can't be lost," he added.
However, if landlords use rent increases as a way to force tenants to move out -- charging the new, incoming tenants a lower rate -- the ousted tenants can now apply to the rental board for compensation thanks to the new amendments.
Logsdon said he is not aware of any advertising campaign planned to inform tenants of the changes.
"People will find out the changes one way or another, I suppose," Logsdon said.
He said the rental board's website has been updated and that landlords have been sent flyers explaining the new rules. He said that while it is not incumbent upon landlords to inform their tenants of the changes, they are required to keep a copy of the act on the premises.