Halifax real estate listings advertising fixed-term leases as financial asset for buyers

Nicola Seguin · CBC News

· Posted: Jun 04, 2025 5:00 AM EDT | Last Updated: 1 hr ago

While the Nova Scotia authorities has nary plans to modulate a benignant of lease that's been called a loophole in the province's rent headdress legislation, immoderate existent property listings are advertizing fixed-term leases arsenic a fiscal payment for imaginable buyers. 

A little hunt by CBC News of multi-unit residential buildings for merchantability successful Halifax successful May showed a trend: astatine slightest 11 listings mentioned tenants on fixed-term leases. 

Two listings stated, "Currently treble digit returns with rent increases coming successful September," with 1 besides saying the spot has "little maintenance, zero vacancy and increasing rents."

Others mentioned leases ending soon and boasted money-making potential in statements similar "for the savvy capitalist the finances person upside as tenants crook over."

Tim Allenby, seat of the Dartmouth section of tenant radical ACORN, said he's not amazed by this selling tactic. 

"It's the incentives of the strategy that presently exists," Allenby told CBC News successful an interview. "They person it acceptable up successful specified a mode that landlords payment from chiefly relying connected fixed-term leases, truthful of people that's going to extremity up being an concern benefit."

According to Nova Scotia's Residential Tenancies Act, a fixed-term lease is entered into for a fixed play of time, with a acceptable extremity date. This means it doesn't automatically renew each twelvemonth and landlords tin determine whether oregon not to connection an existing tenant a caller lease. 

Although the state has a impermanent 5 per cent rent headdress for existing tenants, fixed-term leases person been criticized by lodging advocates as a mode astir this legislation, allowing landlords to force tenants out and increase prices much than 5 per cent for caller renters.

The Nova Scotia Association of Realtors declined to remark connected wherefore this benignant of lease is charismatic for spot buyers, and wherefore it mightiness beryllium advertised arsenic an plus of a property being listed for sale. 

It referred CBC News to Rental Housing Providers Nova Scotia, a radical that has defended the usage of fixed-term leases arsenic a mode to mitigate hazard erstwhile renting to tenants similar students, newcomers oregon radical with atrocious recognition oregon nary landlord references. 

Kevin Russell, enforcement manager of Rental Housing Providers Nova Scotia, said helium can't remark connected however Realtors marketplace their merchandise — "that's up to them and the owners" — but helium said fixed-term leases play an important relation successful the rental market. 

"It's hard to rent erstwhile there's nary recognition past and no landlord references. So they're utilized to [mitigate] immoderate risk."

Russell referenced probe done by his enactment successful 2023 and 2024 that found 86.1 per cent of landlords who responded use fixed-term leases, with apical reasons being hazard management, limiting spot damage and establishing landlord-tenant relationships. 

The survey found 53.9 per cent of respondents would merchantability units if fixed-term leases were eliminated oregon altered.

"It volition effect successful thousands of units being unavailable to rent arsenic spot owners merchantability their properties," Russell said. "And a batch of times erstwhile we're leasing connected fixed-term leases, it's each done … with a partner, with 1 of the structure organizations."

Russell said the surveys did not inquire if landlords chose to usage this benignant of lease to summation profit, recoup costs oregon circumvent the rent cap. 

Province says selling maneuver is 'disappointing'

An interrogation request for Jill Balser, the curate successful complaint of residential tenancies, was declined. 

"Fixed-term leases, successful immoderate situations, enactment for some tenants and landlords," a authorities spokesperson said successful an emailed connection attributed to Balser. "It is disappointing to spot them being utilized arsenic a selling tactic."

The connection said Balser "strongly suggests" tenants go informed astir fixed-term leases earlier committing to motion one. 

"I besides privation to punctual tenants determination are choices. Periodic leases are different enactment available," the connection said, earlier emphasizing the authorities is focusing connected creating much lodging to springiness tenants greater prime successful wherever to live. 

In mid-May, a provincial authoritative acknowledged that immoderate Nova Scotia landlords are abusing fixed-term leases, but Balser confirmed the pursuing week there are nary plans to bash thing to assistance forestall the abuse.

"They're alert of the problem," Allenby said. "They person it arsenic a effect of a loophole that they created, and present they're telling the full satellite they're not going to bash thing astir it. There is nary inducement for a landlord to play by the rules."

The provincial authorities has said determination is nary information connected the usage of fixed-term leases. Tenant and landlord groups person been calling for the state to bash its ain research.

"If the Nova Scotia authorities wanted impartial information connected however prevalent this occupation is, they person the resources to spell retired and get it," Allenby said.