What types of rental accommodations are covered by Newfoundland & Labrador legislation governing residential tenancies?
All residential premises are governed by the provincial Residential Tenancies Act.
What types of rental accommodations are NOT covered by this legislation?
* Co-op housing
* Hospitals and nursing homes
* University and college residences
* Tourist inns
* Temporary shelters
* Accommodations run by religious groups
* Prisons
* Boarding houses
* Commercial non-residential properties
What types of rental periods are provided for in the legislation?
A lease can be (i) week to week, (ii) month to month, or (iii) terms of 6 months up to a maximum of 1 year. At the end of the term, the lease either terminates, converts to a month-to-month agreement, or the parties can negotiate a new term agreement.
Is it necessary to have a written lease?
No, a written lease is not required, however it is recommended. A verbal agreement between the parties is considered binding.
A signed move-in / move-out checklist is not required, but is recommended for the protection of both parties.
Can the landlord charge a deposit?
Yes, the landlord is allowed to charge a security deposit, however the amount of the deposit depends on the term of the tenancy. For monthly or term tenancies, the deposit must not be more than 3/4 of the first month’s rent. For a weekly tenancy, the deposit must not be more than the amount of the rent payable for the first 2 weeks. The landlord must request the deposit before the tenant moves in, and must deposit it in a trust account within 2 days of receipt. Interest on the deposit is to be calculated as simple interest (at the rate set in December of each year) and must be paid to the tenant upon vacating the premises. When the tenant moves out, the landlord has 15 days to refund the deposit to the tenant or to apply to the Residential Tenancies Division to keep some or all of the deposit.
It is illegal for a landlord to require key money.
What about post-dated cheques?
The landlord is at liberty to ask a tenant to provide post-dated cheques.
When is the landlord allowed to increase the rent?
A landlord must give 3 months’ written notice of a rent increase. The rent may NOT be increased (i) during a fixed-term agreement, (ii) more than once in a 12-month period, or (iii) during the first 12 months of a weekly or monthly rental agreement.
When is rent considered late?
Rent is considered late the day after it is due. The landlord may charge a late payment fee of no more than $5.00 for the first day, and $2.00 for each additional day that the rent is late, up to a maximum of $75.00. The landlord may also charge the tenant an NSF cheque fee of up to $25.00 for each cheque returned by the bank for non-sufficient funds.
How can a lease be terminated?
For term leases, the tenant must give 2 months’ notice and the landlord must give 3 months’ notice for a standard termination. If a term lease is not renewed and notice is not given, the term tenancy converts to a month-to-month tenancy. In a periodic tenancy (such as a month-to-month tenancy), the landlord must give 3 months’ notice and the tenant must give 1 month’s notice.
For termination with cause, the notice periods depend on the reasons for termination. All notices must be in writing. Some reasons for terminating a tenancy include:
* rent arrears (15 days late, 10 days notice to vacate)
* material breach (notice of 1 rental period)
* premises uninhabitable (immediate notice)
* interference with peaceful enjoyment (at least 5 days but no more than 14 days notice by tenant; not less than 5 days notice by landlord)
Can a tenant assign a lease or sublet the premises?
A landlord cannot unreasonably withhold consent for subletting or assigning a tenancy, and may charge the tenant any expenses incurred with respect to the subletting or assignment.
When is the landlord permitted to enter the premises?
The landlord may enter at any time if an emergency arises, but in non-emergency situations the landlord must give 24 hours notice for inspection and must enter during reasonable hours (9 a.m. to 5 p.m. and 7 p.m. to 9 p.m.). After a Notice of Termination is given by either party, the landlord may enter the premises on 4 hours notice to show the property to prospective tenants or buyers.
How can a landlord evict a tenant?
To evict a tenant, the landlord must make application to the court, pay the fees, attend a hearing and provide evidence for the reasons an eviction is being sought. The court will issue an order which is enforceable by the Sheriff to evict the tenant. If the tenant disagrees with the Court’s decision, the tenant can appeal the decision.
The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.
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