Cap Annual Rent Increases and Vacancy Control

Summary#

This bill sets clear rules for how much and how often landlords in Nova Scotia can raise residential rents. Its main goal is to keep rent increases predictable and tied to inflation, while allowing limited exceptions for real cost pressures.

• Limits rent increases to once every 12 months and ties the annual cap to Nova Scotia’s inflation rate (Consumer Price Index).
• Applies “vacancy control”: the first rent for a new tenant must match what the previous tenant paid for the unit (unless the unit has never been rented).
• Treats cutting services (like parking or laundry) as a rent increase, so landlords cannot avoid the cap by reducing what they provide.
• Lets landlords apply for above‑guideline increases only for extraordinary tax or utility hikes, approved capital work, or contracted security costs, with proof shared with tenants.
• Requires rent rollbacks when certain costs go down (for example, if property taxes or utilities drop, or when a capital cost add‑on period ends).
• Requires 90 days’ written notice for any rent increase and allows tenants to seek rebates for unlawful rent.
• Takes effect January 1, 2026, and must be reviewed every four years.

What it means for you#

• Tenants

  • Rent can go up only once a year and generally by no more than the annual guideline (based on inflation).
  • If you move into a unit that was rented before, your starting rent must be the same as the last tenant’s lawful rent. This helps prevent big jumps between tenancies.
  • You must get at least 90 days’ written notice before any increase. If notice is missing or late, the increase does not apply.
  • If services or facilities are reduced or stopped (for example, parking removed), you can apply for a rent reduction. Any cut is treated like a rent hike under the cap.
  • If a landlord overcharges, the extra amount is owed back to you. Former tenants can also apply for rebates in some cases.
  • If utilities included in your rent become cheaper by a set amount, or the landlord stops providing them, your rent must be reduced.
  • If a building’s property taxes drop by more than a set amount, tenants’ rents must go down accordingly. Municipalities must notify tenants in larger buildings.
  • Roommates: the total of all your separate room rents cannot be more than the lawful rent for the whole unit.
  • You can apply jointly with other tenants in the same building and can appeal decisions through the Residential Tenancies process.

• Prospective renters

  • When a unit changes tenants, the rent is tied to what the last tenant paid. For brand‑new units with no prior tenant, the first rent set becomes the base going forward.

• Landlords

  • You may raise rent only once every 12 months and usually by no more than the annual guideline. The government will publish the next year’s guideline each August.
  • You can apply at least 90 days in advance for an above‑guideline increase only if you had extraordinary increases in municipal taxes, utilities you include in rent, approved capital projects, or contracted security costs. You must share required details with tenants.
  • Capital cost increases are temporary: the capital portion must come off the rent on a set date. Utility‑driven increases may have to come down if utility costs later drop.
  • Early‑payment discounts (up to 2%) or rent‑free months (up to three per year) do not raise the unit’s base (“lawful”) rent.
  • Cutting services is treated as a rent increase under the cap. Overcharges can lead to orders and fines up to $10,000.

• Local governments

  • When property taxes for a building fall by more than a set amount, you must notify the Director (the official who oversees residential tenancies), the landlord, and tenants in larger buildings, so rents can be reduced.

Expenses#

No publicly available information.

Proponents' View#

• Tying rent increases to inflation makes costs more predictable for renters and landlords.
• Vacancy control stops sharp rent jumps when tenants move out, helping keep neighborhoods affordable.
• Clear paths for above‑guideline increases let landlords recover real, unusual costs and invest in necessary upgrades.
• Required rollbacks (for capital and utilities) ensure rents come back down when those costs ease.
• Treating service cuts as rent hikes closes common loopholes and protects tenants’ living conditions.
• Strong notice rules, the ability to claim rebates, and joint applications make the system easier to use.

Opponents' View#

• Pegging increases to inflation may not match landlords’ actual cost growth, especially for repairs, insurance, or borrowing costs.
• Vacancy control could reduce incentives to maintain or improve units and may discourage investment in rental housing.
• The process for above‑guideline increases adds paperwork and delays, which may be hard for small landlords.
• The fine level may be too low to deter bad actors, while compliance costs could still be high for good actors.
• Some fear rent controls could lead to fewer rental units over time if owners convert or sell rather than rent.