N.S. landlords complain they can't cover rising costs without rent increases
Nova Scotia Premier Tim Houston admits he's worried extending rent control may push small landlords out of the market.
"I'm worried about that," Houston said to reporters Thursday after Question Period.
In the election campaign, Houston wasn't in favour of rent control.
On Thursday, he said the rent cap isn't a long-term solution but a temporary measure.
"While other measures to increase housing supply have a chance to work. It was just something that we felt had to be done to protect tenants," Houston said.
As Nova Scotia extends a two per cent cap on rent increases until the end of 2023, one landlord believes language and words matter.
"The constant concept of protecting the tenant from a landlord makes the standard landlord out to be some kind of a villain. Our job is to provide good quality housing," said Adam Conter, General Manager of AR Webber Properties Ltd. The company has 10 to 14 buildings throughout the Halifax peninsula. Most tenants are students or young professionals.
"Our job is to take you into properties that we own, manage them well so that you'll stay and be happy. I think there's too much focus on some of the bad apples," Conter said.
Landlords say expenses are going up. Conter said the insurance for one of his properties will go up 19 per cent year over year.
Kevin Russell with Investment Property Owners Association of Nova Scotia said that's low compared to what he's hearing from other landlords.
"The insurance industry is saying the average price hike that they're saying is between 20 and 25 per cent, but we're getting more calls from landlords saying they're seeing 40 to 50 per cent increases," Russell said.
Mix in higher energy costs and property taxes and Russell expects small landlords will respond to the extension of the two per cent cap on rent increases by walking away.
"They'll either sell their properties or take their properties off the market because, in reality, any business can't maintain a business if they're selling a product below cost," Russell said.
Mark Pretty is struggling to find an affordable place to live now and has been looking for four or five months.
He's relieved to hear rent control will continue, but wonders about enforcement.
"My concern is whether or not landlords are held accountable when they break the rules or raise the rent more than that two per cent," Pretty said.
Conter calls the province's move misguided.
"One challenge in rent control is not understanding the true cost of managing property," he said. Many of his buildings are older and require maintenance, window replacement, repainting, heat control etc.
Factor in utilities costs and insurance costs and he said their costs are going up considerably greater than the two per cent revenue they're locked into.
"So I think what you'll find is a lot of people will pull back on scheduled improvements to existing property. Which is of no benefit to the tenant whatsoever," he said.
CTVNews.ca Top Stories
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.
Pilot reported fire onboard plane carrying fuel, attempted to return to Fairbanks just before crash
One of the two pilots aboard an airplane carrying fuel reported there was a fire on the airplane shortly before it crashed and burned outside Fairbanks, killing both people on board, a federal aviation official said Wednesday.
Manitoba government tables bill to end ban on homegrown recreational cannabis
Manitoba is planning to lift its ban on the home growing of recreational cannabis.