New Brunswick landlords concerned by record high property assessments

New Brunswick landlords are sounding the alarm over what they say are skyrocketing property assessment increases from the province.

“The latest increases we received are averaging around 42 per cent, an increase that’s extreme in our minds” says president of the New Brunswick Apartment Owners Association (NBAOA) Willie Scholten.

“We’ve never seen increases like this ever in New Brunswick.”

The NBAOA, which represents about 70 per cent of the rental units in New Brunswick, estimates it will result in over $50-million more in taxes every year.

“The landlords that have been calling me have seen anywhere from 20 per cent to 120 per cent [increases],” says Scholten. “The result is taxes that are probably going to result in over $100 [rent] increases in a lot of cases.”

The provincial opposition is calling for action on the issue from the Higgs government, in particular, a cap on assessment increases.

“We have a temporary infusion of investments where outside investors are buying these apartment buildings, and it’s adding to a temporary increase in the value of these properties,” says Opposition Leader Roger Melanson.

The NBAOA also cites what’s been dubbed the ‘double tax’ in New Brunswick as another issue facing its members, but Acorn New Brunswick says eliminating that could make the situation worse for renters.

“In fact, what we have heard from other experts within the province, is that if you were to axe these taxes, what could happen is it could incentivize real estate investment trusts and financialized landlords to come into the province and buy up more housing,” says chair of Acorn NB Sarah Lunney.

Lunney says what’s needed in New Brunswick is rent control.