If you are a landlord or tenant living in Nova Scotia, you may be familiar with the term “renoviction”, which refers to a situation where a landlord wants to evict a tenant in order to renovate the tenant’s unit.
When a landlord wants to end a lease for that purpose, it is important for both parties to understand the legal process that must be followed, and the rights and obligations which are at stake.
Under Nova Scotia’s Residential Tenancies Act, landlords can evict tenants for the purpose of either demolition or carrying out renovations that are so extensive they require both a building permit and the unit to be unoccupied. When a landlord wants to evict a tenant for renovation purposes, the renovations must be major: landlords cannot evict tenants for minor cosmetic or surface level renovations, such as painting or changing cabinets.
There are two ways a tenancy can be terminated under these provisions.
First, landlords and tenants can mutually agree to end the tenancy to allow the landlord to carry out the renovations. When a tenant and landlord mutually agree to end the tenancy, this agreement must be in writing (not verbal) and must be done using a form called a DR5: Agreement to Terminate for Demolition, Repairs, or Renovations. Tenants are under no obligation to agree to end the tenancy and cannot be forced to sign a DR5.
Second, if the parties do not mutually agree to end the tenancy, the landlord can apply to the Director of Residential Tenancies for an eviction order. To obtain an eviction order from the Director, the landlord must be able to show the Director that:
• the renovations are so extensive that the landlord requires building permits, and these permits have already been acquired by the landlord;
• the renovations are being carried out in good faith; and
• the required renovations are so extensive that the landlord requires vacant possession of the residence in order to carry them out.
When a landlord wants to end a lease to conduct renovations, either by agreement or through an eviction order, the tenant is entitled to at least three months’ notice of the planned demolition or renovations.
This means if the tenant agrees to end their tenancy by signing a Form DR5, the tenant does not have to move out until three months after the agreement is made. Similarly, if the landlord is successful in obtaining an eviction order, tenants have at least three months from when the eviction order is made before they are required to move out.
Tenants are also entitled to compensation when a tenancy has been terminated under the renoviction provisions of the Residential Tenancies Act. This compensation can be equal to between one and three months’ rent depending on the size of the building. If the building a tenant lives in contains more than four units, the tenant is entitled to compensation equal to three months’ rent. If the building contains four units or less, the tenant is entitled to compensation equal to one month’s rent.
However, a tenant is not entitled to compensation if the landlord provides the tenant with an alternative unit that is acceptable to the tenant and the tenant agrees to enter into a lease for the alternative unit with the same benefits and obligations as their current lease.
Tenants may also be entitled to additional compensation if the landlord does not follow the rules set out in the Residential Tenancies Act. When a landlord does not follow the rules, tenants may apply to the Director for additional compensation, which could include any of the following:
• reasonable moving expenses incurred by the tenant;
• reasonable additional expenses incurred by the tenant, up to a maximum amount equal to one month’s rent; or
• all or a portion of the amount of increased rent the tenant has to pay under their new lease for up to twelve months.
When a tenancy is terminated by agreement or order from the Director of Residential Tenancies, the tenant has the right to end the tenancy before the date specified in the agreement or the order, so long as they give the landlord at least ten days’ notice.
If you are a landlord or tenant that needs guidance on residential tenancies matters, you can contact one of the experienced lawyers at Burchell MacDougall, who will be happy to assist you.
This article is for information only and is not intended to be legal advice. If you have any questions or would like further information, you should consult a lawyer.
