Property owners say they could lose their rentals without help to cover soaring heating bills

Property owner Mike Burgess owns 77 rental units in Dartmouth, N.S., and says oil costs are by far his biggest expense.

“Right now, we’re chasing over $2,000 for a fill,” Burgess says.

That’s at just one of his buildings. In the winter, he says that’s closer to $2,500 a month.

With the 2 per cent rent cap in place in Nova Scotia, that cost is coming out of his own pocket and is unrecoverable.

The executive director of the Investment Property Owners Association of Nova Scotia says it’s something many of the smaller rental housing providers across the province are facing.

“Heating costs have increased 142 per cent since November 2020 when the rent cap was implemented,” says Kevin Russell.

Adding to that is increasing insurance premiums, property taxes, water and other utilities.

Some property owners now want out.

“Rental housing providers are looking at all their options and one is selling their properties to get out from underneath of the fact that they are losing money,” Russell says.

A situation that could be bad news for tenants.

“If somebody wanted to come in and do renovations, they can empty out the building, do renovations and then charge market rents… but it’s doubling rents,” says Burgess.

Dartmouth resident Devin Slawter is seeing first-hand what vacant apartments are going for in his building.

“I am paying $711 and I was told that the new people that are starting to move in are paying $1,650,” Slawter says.

There are 5,000, small rental property owners in Nova Scotia and they include those who rent duplexes, triplexes and condos. In total, they account for about 12,000 units across the province.

The Investment Property Owners Association of Nova Scotia is calling on the province to provide an oil subsidy to offset the rising cost of home heating fuel.

The temporary rent cap is set to expire on Dec. 31, 2023.