Minister has no plans to address so-called fixed-term lease loophole

Nova Scotia's minister responsible for the Residential Tenancies Act denies her government is providing landlords with a way around the provincial rent cap, but she also confirmed Thursday there are no plans to do anything that would help prevent the abuse of fixed-term leases.

Jill Balser told reporters following a cabinet meeting in Halifax that the cap on rent increases created disruptions to the housing market and her government doesn't want to make any other changes that could further affect supply at a time when vacancy rates are showing signs of improvement.

"For us at this point in time, the focus on supply is changing the housing market," she said.

"So knowing that Nova Scotians will have choice is really our focus."

'Now they have options'

Balser said renters are beginning to have more choices about where to live, with some landlords offering incentives to sign a lease as the vacancy rate increases in some cases.

"If a particular unit is not where they want to be or perhaps it's a lease that they don't necessarily want to sign, now they have options and that's really the environment and the place that we want to get to."

It's important that people ask questions and know what they're getting into before signing a lease, said Balser. For people who find themselves in a situation where they think the rules are being broken, the residential tenancies program is there to help, she said.

The provincial rent cap applies to a unit as long as a tenant with a periodic lease lives there. When they move out, rents can be adjusted above the five per cent cap.

However, there is a prevailing concern among housing advocates that some landlords are switching tenants to fixed-term leases because it is easier to move those tenants out for a new tenant, for whom the cap would not apply.

Interim Liberal Leader Derek Mombourquette said there is no reason for the government to continue to allow abuse to happen without any kind of response.

"I don't buy this idea that there are these unforeseen circumstances if they don't correct this," he told reporters.

"They could act on this, they could support a lot of people across this province, and they won't."

NDP housing critic Susan Leblanc said Balser's explanation for why her government will not address concerns about fixed-term leases "doesn't make any sense."

"People come into my office every single day worried about getting evicted or not being able to find a place to live when their fixed-term lease runs out. So the government's focus does not seem to be on them," she told reporters.

"I don't know where it is, but we need to focus on the people who are most vulnerable."