Service New Brunswick seeing 'slight increase' in complaints about large rent increases

The office that settles disputes between tenants and landlords in New Brunswick receivedabout 50 complaints oflarge rent increases in the last four months of 2021.

It's part of a "slight increase" in the numberof such complaints that employees with Service New Brunswick are handling recently, according to Jessica Bernier, the province's chiefresidential tenancies officer.

"There is currently a low vacancy rate in the province, and so as a result, that has kind of a trickle-down effect to having an impact," said Bernier, speaking to CBC's Harry Forestell.

"So there is a slight increase in those particular requests. And also, obviously, media coverage does increase people's awareness and sensitivity to it. So it is something that we're seeing more."

Berniersaidapplications by tenants seeking to challenge a proposed rent increase remains a "small percentage" of the roughly 4,000 cases her offices handles in a normal year.

For close to a year now, tenantsfrom almost every corner of the province have come forward withstories oftheir landlord hiking their rent by anywhere from 40 to 70 per cent.

The actions by these landlords haveforced some to find new places to live, and inspired calls for tighter controls on when and how landlords can increase rents.

Stats don't paint full picture

Aditya Rao, a member of the New Brunswick Coalition for Tenants Rights, said the figures provided by Bernier don't providean accurate picture of how many people havebeenhit recently with hefty, unreasonable increases in their monthly rent costs.

Rao noted that untillast month, landlords had more freedom to hike rents, with norecoursefor many tenants.

Prior to Dec. 17, only tenants who'd been renting a unit for more than five years had the option to appeal a rent increase with Service New Brunswick. Now, anyone can file an appeal with Bernier's office if they feel their rent has been unfairly increased.

"The vast majority of those rent increases could not actually be reviewed," said Rao, referring to notices issued before Dec. 17, 2021.

"The tribunal had no jurisdiction to review rent increases and do anything about them if you were not a long-term tenant."

The amendments alsomade it so that a landlord must now give a tenant at least six months notice of any rent increase, and cannotissue a rent increase to the same tenant twice within 12 months.

Raosaid other tenantssimply don't have the time or understand the process well enough to file an appeal.

"The fact thatthe tribunal is not seeing a significantly large number of complaints is a reflection of the fact that the system is not accessible, that it doesn't protect tenants and that the government is allowing this exploitation to continue."

Changes still needed

Rao said the most effective tool for combating unfair rent increases would be for the government to introduce rent controls that capped the amount that a landlord could raise a tenant's rent annually.

Despite recent stories from tenants facing large hikes, Social Development Minister Bruce Fitch has said the province already has sufficient protections for tenants.

Rent control aside, Raosaid tenants could also be helped out by requiring that landlords submit proposed rent increases to Service New Brunswick, which would then approve or deny the increase.

Bernier said right now landlords can issue a notice of a rent increase to tenants and ifthe tenantwantsto appeal it, they can file an application with Service New Brunswick.

Bernier'steam can thenstrike down the increase, or allow it, basing its decision on factors including the condition of the unit and how it compares to similar ones in the same neighbourhood.

Rao said that leaves tenants potentially fielding a series of proposed rent hikes, which they must take on the burden of challenging each time.

"It's an endless circus," Rao said.

"The landlord simply has to just bring forward a new notice and then the tenant has to start all over again, which is extremely stressful, extremely time-consuming for a lot of tenants who are trying to live a life during a pandemic."