What types of rental accommodations are covered by Northwest Territories legislation governing residential tenancies?

All residential premises are governed by the Residential Tenancies Act.

What types of rental accommodations are NOT covered by this legislation?

* Hotels, motels, tourist homes, hostels and temporary shelters
* Co-op housing, unless it is rented to a tenant who is not a co-op member
* Living quarters rented to hospital staff and their families, either on a seasonal or shared basis, or to staff and students of schools on such a basis
* Living quarters located in business premises and occupied by an employee or contractor for the purpose of serving the business
* Living quarters attached to a rented business space and rented to the tenant under a single tenancy agreement covering both the business space and living quarters
* Living accommodation occupied by a person for penal, correctional, rehabilitative or therapeutic purposes or for the purpose of receiving care

In addition, special rules apply to:
* Caretakers’ units
* Premises provided to the tenant as a job benefit
* Subsidized public housing units - operating under the NWT Housing Corporation and its agents
* Premises provided by a school to a tenant who is a student or staff member
* Premises with a bathroom or kitchen facilities that are shared by the landlord and tenant
* Premises that are the only home of the landlord in the NWT

Subsidized public housing is exempt from sections of the Residential Tenancies Act. Local Housing Organizations, Authorities and Associations administer public housing, following guidelines which were initially established by the NWT Housing Corporation.

What types of rental periods are provided for in the legislation?

A lease can be (i) periodic (week to week or month to month), or (ii) for a fixed term with a specified termination date.

Is it necessary to have a written lease?

No, a written lease is not required, however it is recommended. A tenancy agreement can be written, verbal or implied.

A signed move-in / move-out checklist is required if a security deposit is requested, and the landlord and tenant must both sign an inspection report when the tenancy begins.

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. If the premises are rented on a weekly basis, the amount of the deposit may not exceed 1 week’s rent. In all other circumstances, the landlord may charge the equivalent of 1 month’s rent. Landlords of subsidized housing may use the true market value of the rent to calculate the security deposit. If the tenancy is for more than week-to-week, the tenant may pay half the security deposit upon moving in and the balance within 3 months.

Within 10 days after the tenant vacates the premises the landlord must return the security deposit to the tenant with interest as set out in the Act, together with an itemized statement of account for any portion of the security deposit that is being retained by the landlord for repairs of damage and for any rent arrears.

It is illegal for a landlord to require any deposit other than a security deposit.

What about post-dated cheques?

The landlord is at liberty to ask a tenant to provide post-dated cheques, but tenants are not obliged to comply.

When is the landlord allowed to increase the rent?

A landlord may not increase the rent more than once in each 12-month period. The landlord must give at least 3 months’ written notice of the increase. A tenant who receives a notice of rent increase may treat the notice as a notice to terminate the tenancy. In order to do this, the tenant must inform the landlord in writing of his/her decision to vacate. The landlord may then re-let the premises, but must keep the rent for the new tenant at the same level as stated in the notice of increase.

When is rent considered late?

Rent is considered late the day after it is due. A tenant who pays the rent later than the date on which it is due is subject to a penalty for each day that the rent is late.

How can a lease be renewed?

When a tenancy agreement ends on a specified date, and if a new yearly tenancy agreement or notice to terminate was not given by either party, the parties are deemed to renew the tenancy agreement on that date as a monthly tenancy.

The Residential Tenancy Act does not apply to Northwest Territories Corporation Subsidized Public Housing and Staff Housing lease renewals, sublets and assignments, or rent increases. To live in public housing, tenants must remain eligible for the assistance and for staff housing, tenants must remain in the employment of the unit’s owner.

How can a lease be terminated?

It is the responsibility of both parties to renegotiate or terminate the lease before the expiry date. Tenants may not give notice during a fixed term lease, but must wait until the end of the fixed term for the lease to terminate. Landlords may only terminate a tenancy for specified reasons as set out in the Act and cannot terminate simply because a fixed term has expired. When a fixed term tenancy goes to a month-to-month term, the landlord cannot force a tenant to sign another lease or agree to another fixed term.

A notice of termination must be in writing and signed by the party giving the notice. It must also (i) identify the rental premises, (ii) state the date on which the tenancy is to terminate, and (iii) state the reason for the termination. If the notice is not in proper form or is not properly served, it is invalid and the tenancy continues.

A tenancy may only be terminated by:
1. a written agreement between the landlord and tenant;
2. in certain circumstances, by notice given by the landlord;
3. by notice given by the tenant;
4. by legal order;
5. where the premises are provided to an employee as a job benefit, by lawful termination of the tenant’s employment;
6. by abandonment of the premises by the tenant.

Termination by a tenant of a fixed-term agreement must occur at least 30 days before the end of the term. For a weekly tenancy, notice must be given at least 7 days before the termination date stated in the notice; for a monthly tenancy of less than 12 months, at least 30 days before the stated termination date; and for a monthly tenancy of 12 months or longer, at lest 60 days before the stated termination date.

Can a tenant assign a lease or sublet the premises?

Yes, with the landlord’s consent. If the landlord refuses consent, the tenant may appeal to the Rental Officer. When a tenant sublets, the tenant remains responsible to the landlord for rent and for any breaches of the tenancy agreement committed by the sub-tenant. When a tenancy is assigned, the former tenant transfers all of his/her rights and obligations to the new tenant. Landlords are allowed to charge for granting consent for an assignment or sublease, up to a maximum of $50.00.

Assignments or subletting agreements, and the landlord’s consent, must all be in writing. Agreements must be signed by both the tenant and sub-tenant or assignee, and attached to a copy of the written tenancy agreement.

Tenants in Public Housing and Staff Housing units cannot sublet or assign their units.

When is the landlord permitted to enter the premises?

A landlord may enter the premises between 8 a.m. and 8 p.m. The landlord must give written notice to the tenant at least 24 hours before entry, specifying the purpose of entry, the days and the hours during which the landlord intends to enter the premises. A tenant may specify alternative days and hours that are reasonable under the circumstances. No prior notice is required if (i) an emergency exists, (ii) the tenant consents at the time of entry, or (iii) the landlord has reasonable grounds to believe that the tenant has abandoned the premises.

How can a landlord evict a tenant?

If the tenant does not leave after being properly served a termination notice or an order to vacate, the landlord must obtain an eviction order from the Supreme Court. Applications for eviction orders must be served on the other party at least 5 days before the date scheduled for the hearing. Both parties should have a lawyer at the hearing. If an eviction order is granted, a writ of possession is also required. The landlord delivers these documents to the Sheriff. The Sheriff must first make a reasonable demand to be let into the premises, but then may force his/her way into the premises, if necessary. Resisting the Sheriff in these circumstances can lead to criminal prosecution.

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.