A tenants’ advocacy group is welcoming the proposed three per cent rent cap in New Brunswick.
But NB ACORN says it wants to see the province go further to ensure tenants are protected.
In a news release, the group said a rent cap will help ensure tenants will not face rent increases that they cannot afford.
“With a cap in place there will be an incentive for landlords to get tenants out of their units so they can increase rents,” said the release.
NB ACORN is calling on the province to introduce legislative changes that stop renovictions and landlord-use evictions from happening.
They also want the province to ban a practice known as cash for keys, where tenants are approached by landlords and offered money in exchange for their agreement to move.
Meanwhile, the New Brunswick Apartment Owners Association is frustrated by the proposed rent cap.
President Willy Scholten said while the cap aims to protect tenants, it ignores the financial pressures facing property owners.
“We’ve been talking with the government about balance. This won’t work if we only have rent control without addressing the cost side of the equation, especially taxation, which is our major cost,” Scholten told our newsroom.
RELATED: N.B. apartment owners raise concerns over proposed rent cap
Scholten said New Brunswick landlords face a tax rate 1.5 times higher than in other Atlantic provinces, with assessments climbing by 70 per cent over the past five years.
“If costs rise 10 per cent but rent can only increase by three per cent, we’ll see fewer new buildings constructed and existing ones falling into disrepair,” he said.
If approved, the rent cap will take effect on Feb. 1, 2025.
