January 8th, 2013
Nova Scotia Landlords Can Raise the Rent 3% in 2013
Unlike in Alberta, landlords in Nova Scotia can only increase the rent for current tenants as much as the government will allow.
The government Residential Tenancies program announces an Annual Allowable Rent Increase Amount (AARIA).
The AARIA is published annually before April 1st. The published amount is the limit landlords can increase rents from January 1st to December 31st for the year following.
The 2013 allowable rent increase (between January 1, 2013 and December 31, 2013) is 3.0%.
How Does the Government Calculate AARIA?
The formula for calculating the annual AARIA is (X + Y) ÷ 2.
- X = the annual average percentage change for the Consumer Price Index* for the calendar year immediately before the year the annual allowable rent increase amount is published.
- Y = the annual average percentage change for the Consumer Price Index for the calendar year immediately before the calendar year used for X.
If the annual average percentage change for the Consumer Price Index for a given year is a negative value, the percentage change that will be used to calculate the AARIA will be 0.0 % for that year.
* the Consumer Price Index means the all-items Consumer Price Index for Nova Scotia, not seasonally adjusted, published by Statistics Canada.
How To Give Your Tenants A Rent Increase
A landlord may give tenants in a land-lease community a rental increase that is anywhere between zero and the AARIA, using the Notice of Rent Increase form provided.
The Guideline Rate of 3% Is Too Low
If a landlord wishes to give a rent increase that is higher than AARIA, the landlord must make an application to director using the guidelines in the Landlord’s Guide to Residential Tenancies. This can be a complicated process. It’s a good reason to make sure you find great tenants.