NBNPHA Conference

May 7-8, 2010

Stephen L. Brittain

Office of the Rentalsman – Fundy Region

“A Brief Overview of our Office, our Role, and the Law”

The Office of the RentalsmanJanuary 3, 1983

The Office of the Rentalsman opens and is administered by the provincial Department of Justice.

April 1, 2008

After 25 years with the Department of Justice, control and administration of the Office of the Rentalsman is transferred to Service New Brunswick.

Governing LegislationThe Residential Tenancies Act

- applies to ALL residential tenancies in the Province of New Brunswick

Over the years, there have been amendments made to our governing legislation in an effort to remain current, such as:

- the creation of provisions affecting long term tenancies (tenancies that have continued for a period of 5 years on the same premises or more);

- the inclusion of mobile home parks; and

- the inclusion of rooming houses/boarding houses (most recent amendment April

2010).

Structure Chief Rentalsman (Fredericton)

Beauséjour-Chaleur1 Regional Manager3 Rentalsmen1 Information Agent4 Administrative Staff

Region Includes:MonctonMiramichiBathurst Campbellton

Fundy1 Regional Manager2 Rentalsmen1 Information Agent2 Administrative Staff

Region Includes:Saint JohnSussexHamptonSt. Stephen

Valley1 Regional Manager3 Rentalsmen1 Information Agent3 Administrative Staff

Region Includes:FrederictonWoodstock Edmundston

Functions • Administer The Residential Tenancies Act of New

Brunswick;• Provide information to the public with regard to

residential tenancies; • Educate the public with regard to respective rights

and obligations of landlords and tenants;• Offer mediation services to landlords and tenants

involved in a dispute as it pertains to their tenancy agreement;

• Adjudicate matters that cannot be resolved via mediation.

The Landlord / Tenant Relationship

1) Business Relationship

- financial relationship

2) Legal Relationship

- statute (legislation)

- common law (law of contract)

3) Social Relationship- community interaction

Every Landlord in the Province of New Brunswick has the following legal obligations:

1) To deliver any premises to a tenant:

- in a good state of cleanliness;

- in a good state of repair; and

- in a state that is fit for habitation.

2) To maintain any premises while the premises are rented:

- in a good state of repair; and

- in a state that is fit for habitation.

3) To deliver and maintain any chattels (stove, refrigerator etc.) in a good state of repair.

4) To comply with all health, safety, housing and building standards and any other legal requirement respecting the premises.

5) To keep all common areas in a clean and safe condition.

Landlord Obligations

Tenant Obligations

Every Tenant in the Province of New Brunswick has the following legal obligations:

1) Once in possession of any premises, be responsible for the ordinary cleanliness of the premises and any chattel supplied by the landlord.

2) To repair within a reasonable time any damage to the premises or any chattel supplied by the landlord caused by the tenant and/or his or her guests, whether by wilful conduct or by negligence.

3) To conduct himself/herself and require his or her guests to conduct themselves in a manner that will not cause a disturbance or nuisance.

* Fundamental obligation of the tenant is to pay rent

Due Diligence

Prior to entering into a tenancy agreement with a potential tenant, invest some time in taking steps that will assist in ensuring the potential tenant is the best choice for you.

Screen potential tenants; treat the process of entering into a tenancy agreement as though it is a job interview. For instance, you could:

1) Have potential tenants formally apply for the available premises. This provides you with the opportunity to obtain information from the potential tenant about themselves (example - their employment status and history).

2) Require potential tenants to provide references and ensure you have their permission to contact them to verify any information you have obtained.

Remember: “Nothing ventured, nothing gained”

Protect Yourself!

Protect Yourself… Form 6 – Standard Form of Lease

Once you have settled on a tenant with whom to enter into a tenancy agreement, confirm the terms you have negotiated in writing by executing a formal lease agreement. Effective April 1, 2010, the Form 6, Standard Form of Lease was revised and is available at no expense at any location of the Office of the Rentalsman, as well as online at www.snb.ca/irent. Once executed, both landlord and tenant are to retain a copy for their records.

New Features of the Form 6, Standard Form of Lease

1) Landlord has ability to identify authorized agent or representative [Section 1(A) and Section 7];

2) Tenant has ability to identify emergency contact information [Section 1(B) and Section 7];

Protect Yourself…

3) Landlord and Tenant can acknowledge completion of an inspection of the premises and make note of any repairs required to be completed prior to moving in or during the tenancy [Section 2(D)];

4) Landlord and Tenant can confirm: whether premises are smoking or non-smoking, restrictions with regard to pets, entry by the Landlord during the last rental period without notice to show the premises, as well as additional terms and obligations [Section 2(E)] by way of a “Schedule B” or “Attachment B”;

5) Landlord and Tenant can agree that there will be a late payment charge if the Tenant’s rent cheque is NSF or otherwise dishonoured [Section 4(B)];

6) A broader list of chattels and/or services that are to be provided by Landlord which are included in the rent payment is now available [Section 4(C)];

Protect Yourself…7) Landlord and Tenant can agree with regard to assignment of

rights and obligations [Section 6].

NOTE: Additional Information relating to each Section of the Form 6, Standard Form of Lease, is attached in the form of a

Schedule referred to as “Attachment A”. The inclusion of this Schedule is mandatory and is part of the Form 6,

Standard Form of Lease, and cannot be severed from the document. The inclusion of this ensures that both Landlord and Tenant have quick access to the same information which is derived directly from the legislation.

NOTE: Any additional terms or conditions agreed to by the parties should be annexed as a “Schedule B” or “Attachment B”

and be signed and dated by both the Landlord and Tenant.

Protect Yourself…

EXAMPLE – SCHEDULE ‘B’The parties agree that the following terms and obligations are to be included and form part of a lease agreement between Joe Rental Inc. (The ‘Landlord’) and Jane Doe (The ‘Tenant’) dated the 29th day of April, 2010, in addition to all other terms and obligations:

1) The Tenant agrees that there are to be no roomers, boarders, lodgers, or otherwise and that the only person

to be residing at the premises is Jane Doe, as named in this agreement; and

2) The Tenant agrees that there will be no renovations or modifications made to the premises, including but not limited to painting, without the express written consent

of the Landlord.

Dated this 29th day of April, 2010 – signed Landlord and Tenant.

Accommodation Inspection ReportConsists of two parts:

1) Incoming Inspection Report – completed by the Landlord and Tenant together prior to the Tenant taking possession. This provides both parties with the opportunity to complete an assessment of the premises and any chattels at the commencement of the tenancy. If there are any deficiencies, they can be duly acknowledged and addressed.

2) Outgoing Inspection Report – completed by the Landlord and Tenant together when the Tenant has vacated the premises and ready to surrender possession. If there are any deficiencies that did not exist at the time the Tenant took possession of the premises, this inspection provides the parties with an opportunity to address those issues.

NOTE: It is recommended that photographs be taken and retained with the Inspection Reports.

Accommodation Inspection Report…- Not mandatory to complete Incoming and Outgoing

Accommodation Inspection Reports in New Brunswick, HOWEVER they are good evidence should a dispute arise with regard to a respective obligations either during the tenancy or if a claim has been filed against the security deposit of the tenant.

- As with the Form 6, Standard Form of Lease, both Landlord and Tenant should have a copy for their respective records.

- Ensure that the Accommodation Inspection Reports are signed and dated.

- Take your time; be as thorough as you can as there is no benefit to rush an inspection. The purpose of the inspection is to present as clear a picture as possible as to the condition of the premises (and chattels) at the beginning of a tenancy and at the end of a tenancy.

- Forms are available at no expense online at www.snb.ca/irent and at any Office of the Rentalsman location.

-

Communication With TenantsWhen communicating with tenants, whether for purposes of addressing their conduct, requesting compliance with a term or terms of the tenancy agreement, arranging for an inspection, or even terminating the tenancy, DO SO IN WRITING!!!!

The Residential Tenancies Act requires the following for any type of notice to a tenant:

1) must be in writing;

2) must have name(s) of the tenant(s);

3) must note the address of the rented premises; and

4) must be signed by the landlord (or agent/representative).

Any notice should also be dated and provide clear instructions to the tenant(s). If the Landlord does not comply with these requirements, s/he will not be able to access the Rentalsman for assistance.

TERMINATIONIn order to properly terminate a tenancy, The Residential Tenancies Act requires that written notice be given. The length of the notice period is dependant on the type of tenancy. There are FOUR types of tenancies:

1) Fixed Term – NO NOTICE IS REQUIRED. The term of the tenancy agreement is established at the beginning of the tenancy and both the Landlord and Tenant know when the tenancy begins and when it ends, so no notice is required.

Fixed Term Leases can be short (a number of weeks) or long (a number of years). The duration is dependent on what is negotiated by the Landlord and the Tenant.

TERMINATION…

Example – Termination of Fixed Term Tenancy

Jane Doe is a university student completing her degree in education at UNB in Fredericton. Her hope is to teach in Saint John. As a result, she applies to complete her 4 month practicum in Saint John. She finds an apartment close to her assigned school and enters into a lease agreement with Joe Landlord. They negotiate a tenancy agreement that commences January 1, 2010 and will terminate April 30, 2010. Rent is to be $775.00 and includes heat and lights. No pets are permitted and the premises are to be smoke-free. They sign a Form 6, Standard Form of Lease to confirm this arrangement. On April 29, 2010, Jane calls Joe Landlord on the telephone to advise she would like to drop off her keys as she plans to be out by 2pm the next day.

Has the Tenant complied with notice requirements?

TERMINATION…

2) Week-to-Week – This is a revolving or periodic tenancy and will perpetually renew on a weekly basis until a notice of termination is issued. The required written notice is one full week.

Example: Week-to-Week Tenancy

Fred Newcomer has just arrived in town from out-of-province to work on a large construction project, but he is unaware as to how long his services will be required. He needs a short-term place to stay. He finds a bachelor apartment and contacts Joe Landlord to arrange a viewing. At the premises, he explains his situation and Joe Landlord proposes a week-to-week living arrangement, which Fred Newcomer finds reasonable. It is a fully furnished apartment and includes heat and lights. The weekly rent is $150.00. They sign a Form 6, Standard Form of Lease and the tenancy commences on Monday, May 3, 2010.

TERMINATION…

Week-to-Week Tenancy (continued)

On July 2, 2010, Fred receives word that his services will no longer be required and his last day would be Friday, July 9, 2010. Fred is eager to return home and quickly books a flight out of town. He also calls Joe Landlord and asks to meet him the next day for breakfast.

At breakfast, Fred delivers to Joe a written note dated July 3, 2010, which reads as follows- “Dear Fred, This is my notice I will be out of 25 Workman’s Lane, Apt. 5, Saint John, NB, to be effective Sunday, July 11, 2010. The apartment has been great! Signed – Fred Newcomer.”

Has the Tenant complied with notice requirements?

TERMINATION…

3) Month-to-Month – This is a revolving or periodic tenancy and will perpetually renew on a monthly basis until a notice of termination is issued. The required written notice is one full calendar month.

Example: Month-to-Month Tenancy

Ray Pennypincher has been renting a condominium for approximately 2 years at High Life Towers. He signed a Form 6, Standard Form of Lease with the owner of the condominium, Joe Landlord, when he first moved in. Mr. Pennypincher has been saving in earnest to purchase his own home and last week, he placed an offer on what he believes to be ‘the’ house he has been looking to buy.

On May 6, 2010, Ray received a call from his realtor who confirmed his offer had been accepted, but the sellor wanted a quick closing, and so the deal would close May 28, 2010.

TERMINATION…

Month-to-Month Tenancy (continued)

In his excitement, and afraid to lose the deal, Ray tells his realtor that this was no problem and agrees to the closing date. He then prepares a note that very day, May 6, 2010, and addresses it to Joe Landlord. The note reads as follows: “Dear Joe, Great News! I have found the perfect house I have been saving up for these past few years. The problem is that the closing date is May 28, 2010, and I don’t want to lose it. Therefore, I am giving notice that I will be out of this condominium unit effective Monday, May 31, 2010. I will have the place cleaned up. Signed- Ray Pennypincher”. He delivers the note to Joe’s property manager at the office in the lobby of the building.

Has the Tenant complied with notice requirements?

TERMINATION…

3) Year-to-Year – This is a revolving or periodic tenancy and will perpetually renew on a yearly basis until a notice of termination is issued. The required written notice is three full calendar months prior to the end of the year, with the termination date being the last day of the year.

Example: Year-to-Year Tenancy

Joe Landlord has a duplex on Landlord Alley. He resides in #2 and he has rented #4 out to Art and Gail Goodtenant. They have been renting #4 since 2007 on a year-to-year basis and they have been great tenants for Joe. Art and Gail pay $950 per month and also must pay for their own heat and utilities. Their lease runs from April 1 to March 31 annually.

Joe recently received a promotion at work that is requiring him to relocate to Calgary. As a result, he places the duplex on the real estate market in an effort to sell it.

TERMINATION…

Year-to-Year Tenancy (continued)

In August, 2010, Joe accepts an offer on the duplex and the sale closes on Friday, September 24, 2010. Joe serves Art and Gail with a Form 8 - Notice of Transfer and they say their goodbyes.

The new owners, Jeff and Janice Newowner, have never been landlords. They were aware that Art and Gail resided at #4 and had been there for quite some time. However, Jeff and Janice plan to have Jeff’s elderly parents move into #4 to be close to him. They attend Art and Gail’s premises on October 1, 2010 to collect rent. At that time, they deliver a notice addressed to ‘Art and Gail Goodtenant’ which reads as follows: “Dear Art and Gail, We realize you have been residing here since 2006 and we understand you are great tenants. Unfortunately, my parents

TERMINATION…

Year-to-Year Tenancy (continued)

are older and we want them to be close to us. Therefore, this is your 3 month notice that you are to vacate #4 Landlord Alley to be effective December 31, 2010. Signed – Jeff and Janice Newcomer”

Has the Landlord complied with notice requirements?

TERMINATION…

NOTE: For tenants who have rented the same premises for a period of 5 years consecutively, there are special rules pertaining to terminating their tenancies, as these tenants are classified as “Long Term Tenants” under the legislation and have extra rights.

ALTERATIONSFor tenants who have been renting a premises less than five years, once the terms of the tenancy are established, they cannot be altered with the exception of increasing the rent. If the tenant is a long term tenant, the Landlord must serve the tenant with a written notice advising of the change(s) and must provide three calendar months notice of the proposed change(s). The long term tenant then has 15 days to apply to a Rentalsman if they want to have the proposed changes reviewed. A Rentalsman may confirm the changes or set them aside.

RENT INCREASESThere is no restriction on how much a Landlord may increase a tenant’s rent. However, the Landlord must give the tenant the appropriate amount of written notice, and again, special rules apply to long term tenants, and as with alterations, long term tenants have a 15 day period to apply to a Rentalsman after receiving a notice of rent increase to have the rent increase reviewed. A Rentalsman may confirm or set aside the rent increase.

Fixed Term Tenancies – not permitted unless specifically agreed to by the Landlord and Tenant in the executed Form 6, Standard Form of Lease.

Week-to-Week and Month-to-Month Tenancies – At least two calendar months written notice is required.

Year-to-Year Tenancies – At least three months written notice is required.

MY TENANT HAS NOT PAID RENT; OPTIONS?1) Contact the Tenant: It is always recommended that you

communicate with your tenant and ascertain why the rent was not paid or why the tenant’s cheque was NSF. We encourage dialogue between the parties with the hope that an arrangement can be made.

2) Serving a Notice to Vacate for Non-payment of Rent: The rent is typically due on the 1st day of each month. If it is not paid, a Notice to Vacate may be served on the tenant as early as the next day (2nd). Effective April 1, 2010, the notice period became 15 days. The Form is available online at www.snb.ca/irent as well as at any Office of the Rentalsman location. Once served with this form, the tenant has 7 days to pay the amount owed in full. If paid within this time, the requirement to vacate is automatically canceled and the tenancy continues. If not paid within 7 days, the landlord will be in a position to seek an Eviction Order if the tenant has not vacated by the date noted.

MY TENANT HAS NOT PAID RENT; OPTIONS?

Example:

Joe Landlord arrives at Jane Doe’s premises on May 1, 2010 to collect the monthly rent. Jane answers the door and advises Joe that she has no rent to pay and will not have the money until her next pay cheque arrives, which is in a couple of days. Joe returns on May 2, 2010 with a Notice to Vacate for non-payment of rent. Jane is not at home, so he leaves the notice in her mailbox. Joe has indicated in the notice that Jane is to have vacated by the 17th day of May, 2010.

True to her word, Jane contacts Joe on May 5th and has her rent money. She makes arrangements with him and delivers the rent money later that day to Joe. The notice to vacate is canceled.

MY TENANT HAS NOT PAID RENT; OPTIONS?

NOTE: The original Notice to Vacate for non-payment of rent goes to the Tenant. You must serve a copy with the

Rentalsman within 7 days of serving the original on the tenant. Failure to do so will result in the Rentalsman being unable to assist you in the event you require an Eviction Order.

3) Serving a Final Notice to Vacate for Non-payment of Rent: You may serve a final notice to vacate on a tenant only after you have served at least one ‘regular’ Notice to Vacate for non-payment of rent in a previous month. With a final notice to vacate, even if the tenant pays the rent due and owing within 7 days of being served, they will still be required to vacate the premises. The difference is that if they pay, they would be permitted to remain until the end of the month, rather than the date indicated on the notice.

MY TENANT HAS NOT PAID RENT; OPTIONS?

Example:

Joe Landlord arrives at John Doe’s premises on May 1, 2010 to collect the monthly rent. John has been late with the rent for the past four months and Joe has served a Notice to Vacate for non-payment of rent for the months of February, March, and April. John always ends up paying, but Joe is getting tired of chasing John for the rent. John answers the door and advises Joe that he again has no rent to pay. He tells Joe he thinks he may have some money in a couple of days. Joe returns on May 4, 2010, and John still has no rent money. Joe serves a Final Notice to Vacate for non-payment of rent on John. The notice requires John is to vacate by the 19th day of May, 2010.

Joe does not hear from John again. He arrives at the premises on the 20th and finds John is still there, and is refusing to leave. He attends the Office of the Rentalsman and applies for an Eviction Order.

MY TENANT HAS NOT PAID RENT; OPTIONS?

NOTE: A landlord cannot apply for an Eviction Order until the notice period has fully passed. In other words, if the

notice to vacate instructs a tenant to be out by the 17th, the earliest she or he could apply for an Eviction Order is

the 18th; NO SOONER.

NOTE: If you are serving a Notice to Vacate or a Final Notice to Vacate by mail, you must provide for an additional 3

days to account for mailing time.

WHEN CAN I ENTER MY TENANT’S PREMISES?1) Repairs

- If the Landlord is desirous of making repairs or completing maintenance work, s/he must give at least 7 days written notice of their intention to enter the premises to conduct repairs.

- If the Tenant has requested in writing that the Landlord make repairs, the Landlord can enter the premises without notice within two working days after receiving the written request from the Tenant, otherwise, the Landlord must provide at least 24 hours notice in writing prior to entering in order to complete the requested repair work.

NOTE: No notice is required to conduct repairs if an emergency is present.

WHEN CAN I ENTER MY TENANT’S PREMISES?

2) Inspections

- If the Landlord wants to inspect the premises of the tenant, s/he must provide a minimum of 24 hours notice in writing of the intention to conduct an inspection of the premises.

NOTE: A Landlord cannot enter a premises on Sundays or public holidays (Thanksgiving, Remembrance Day, Canada Day, Christmas Day etc.) and can only enter between the hours of 8am and 8pm.

WHEN CAN I ENTER MY TENANT’S PREMISES?

3) Viewings and/or Showings

- If the Landlord wants to enter the premises of the tenant for the purposes of viewing and/or showing the premises to prospective purchasers, tenants, mortgagees, realtors, etc, s/he must provide a minimum of 24 hours notice in writing of the intention to conduct an inspection of the premises.

- The Landlord and Tenant may agree under the terms of their tenancy agreement that during the last rental period of the tenancy, the Landlord may enter without notice for purposes of viewing and/or showing the premises. This must be confirmed in the Form 6, Standard Form of Lease [Section 2(E)]; if not, the Landlord must provide written notice.

NOTE: If a tenant lets you in, you do not need notice!

MY TENANT HAS BROKEN THE LEASE! OPTIONS?

As with any issue that may develop, the Landlord is recommended to address the matter with the Tenant in an effort to resolve the problem amicably. If this is unsuccessful, the Landlord should take the following steps:

1) Breach of a term of the tenancy agreement

- If the Tenant has breached a term of the tenancy agreement, and the issue cannot be resolved amicably, the Landlord should give the Tenant a written notice to comply. For breaches of the tenancy agreement other than conduct, the Tenant must be given a minimum of 7 days to correct the breach. The Tenant is issued the original and the Landlord is to retain a copy in the event s/he will need to approach a Rentalsman for assistance.

MY TENANT HAS BROKEN THE LEASE; OPTIONS?

Example:

Jane Doe entered into a tenancy agreement with Joe Landlord and signed a Form 6, Standard Form of Lease. Under the terms of the lease, Jane was not to have any pets. One day, Joe discovers that Jane has obtained 2 kittens without his knowledge. Joe talks to Jane and confirms that she took them in as a friend had to get rid of them and she could not bear to see them put down. Joe reminds her of their lease agreement and asks her to get rid of the pets. Jane does not want to part with them and upon attending the building 2 weeks later, Joe discovers Jane still has them.

What should Joe Landlord do?

MY TENANT HAS BROKEN THE LEASE; OPTIONS?

2) Conduct and/or Nuisance

- If the Tenant’s behaviour (or the behaviour of the Tenant’s guests) causes a disruption or disturbance, the Landlord is in a position to issue a conduct letter to the Tenant. Compliance with a conduct letter is to be immediate. The Landlord delivers the original to the Tenant and should retain a copy for retention in his or her file. If there is a subsequent disturbance, the Landlord makes note of the subsequent behaviour and gathers witnesses who can corroborate the event(s) and must deliver this to a Rentalsman when seeking assistance, together with a copy of the initial conduct letter that had been issued to the Tenant that the Landlord retained in their file. A Rentalsman will not open a file unless this process has been followed.

MY TENANT HAS BROKEN THE LEASE; OPTIONS?

Information required in initial letter to Tenant:

1) Tenant name(s) and premises;

2) Date of occurrence of unacceptable behaviour;

3) Time unacceptable behaviour took place;

4) Description of unacceptable behaviour;

5) Instruction to stop immediately; and

6) Signature of Landlord.

NOTE: The conduct letter issued to the Tenant is to be addressed to them directly. Remember, the Tenant is responsible not only for their own actions, but for the actions of their guests and invitees (anyone on the premises with the consent or permission of the Tenant).

MY TENANT HAS BROKEN THE LEASE; OPTIONS?

Information required for a Rentalsman to open an investigation:

1) Tenant name(s) and premises;

2) Date of subsequent occurrence of unacceptable behaviour;

3) Time subsequent unacceptable behaviour took place;

4) Description of subsequent unacceptable behaviour;

5) Names and contact particulars of two or more witnesses;

6) Copy of initial conduct letter that had been served on Tenant;

7) Any other evidence relating to the subsequent unacceptable behaviour.

NOTE: If police had to attend the scene, be sure to obtain the name(s) of the responding officers. They are 3rd party witnesses and also may have created a report on the incident to which they responded.

MY TENANT HAS BROKEN THE LEASE; OPTIONS?

NOTE: If a Rentalsman opens a file, an investigation will be completed and if the Rentalsman determines there is a conduct issued, a compliance order will be issued on

the Tenant. If the Tenant breaches the compliance order issued by a Rentalsman, the Landlord will follow the

same process and advise the Rentalsman as to the unacceptable behaviour of the Tenant and is then in a position to request the tenancy be terminated by way of a Notice to Quit. This is an immediate termination to the tenancy that can only be issued by a Rentalsman.

MY TENANT HAS BROKEN THE LEASE; OPTIONS?

Example:

John Happygolucky entered into a tenancy agreement with Joe Landlord and signed a Form 6, Standard Form of Lease. John was given possession of the premises on May 1, 2010 and later that week after fully moving in, he had a large party to ‘celebrate’. The party continued into the early hours of the morning on Saturday. The music got louder, as did John’s guests. Joe was stirred from his sleep at 3am. It was one of his other tenants, Sally Slumber. She lived in the apartment below John and she was angry! Through his own phone Joe could hear loud music and shouting in the background. Sally tells Joe this is what it has been like all night and that she had to be for work at 7am and had not been able to sleep all night. She tells Joe she had gone upstairs and asked nicely to keep things down, but John and his guests did not listen to her. She did not call the police because she does not want to be a ‘trouble-maker’.

What should Joe Landlord do?

SECURITY DEPOSITA Landlord can require Tenant to pay a security deposit, also called a damage deposit, which can be no more than a full rental period payment. For instance, if monthly rent is $850 for a premises, the most the Tenant is legally responsible to pay (if required) as a security deposit would be $850.

The security deposit serves as protection against the Tenant’s failure to pay rent or their failure to maintain the ordinary cleanliness of the premises, or repair damages to the premises or any chattels they (or their guests) caused.

Security Deposits are required to be held by the Rentalsman by law and can be remitted by either tenants or landlords at any Service New Brunswick Service Centre. A full listing of all SNB Service Centres is available at www.snb.ca/irent.

SECURITY DEPOSIT

NOTE: If a Landlord (or their agent) collects a security deposit from the Tenant, the security deposit must be remitted

to the Office of the Rentalsman within 15 days of collection from the Tenant. The Rentalsman holds the deposit in

trust in the name(s) of the tenant(s) until the tenancy is terminated. At that time, the security deposit may be refunded to the Tenant upon their application, released

to the Landlord on the written instruction of the Tenant, or awarded in whole or in part to a Landlord who has filed

a claim against the security deposit. The security deposit may also be transferred to a new premises or

transferred to another tenant upon application by the Tenant.

FAILURE TO REMIT A SECURITY DEPOSIT CONSTITUTES AN OFFENCE AND COULD RESULT IN

PROSECUTION IN PROVINCIAL COURT

SECURITY DEPOSIT

NOTE: There is no ‘pet deposit’, ‘furniture deposit’, or any equivalent above and beyond the one rental period

amount in New Brunswick. If more than the equivalent of one rental period is collected by a Landlord (or their agent) or remitted to the Office of the Rentalsman, the amount in

excess of the one month rental period is returned to the Tenant without delay.

FILING A CLAIM

If the Landlord intends to claim against the security deposit of their Tenant, the claim must be filed within 7 days of the end of the tenancy. Claims filed after the 7 day claiming period will not be entertained by a Rentalsman, as the Rentalsman is statute barred (legally not permitted) to receive any claim after this period of time.

A security deposit is always applied to unpaid rents first, then to damages and cleaning expenses. The Rentalsman only has the authority to award to up to the amount of the security deposit. In other words, once the security deposit has been disbursed, if there are still outstanding issues or allegations of loss suffered by the Landlord, the Landlord’s remedy is through the civil court system, typically the Small Claims Court of New Brunswick.

FILING A CLAIM

When filing a claim, ALL EVIDENCE SHOULD BE SUBMITTED WITH THE CLAIM THAT IS PERTINENT TO THE CLAIM. This could include but is not limited to the following:

- copy of Form 6, Standard Form of Lease;

- copy of correspondence between Tenant and Landlord relating to the matter(s) claimed;

- receipts, invoices, or estimates for repairs, cleaning, and other expenses related to the matter(s) claimed;

- copy of Accommodation Inspection Report;

- photographs and/or video;

- witness statements.

FILING A CLAIM

NOTE:

The claimant has the burden of proving his or her case. In other words, if the Landlord alleges on a claim that it cost $25.50 to replace a damaged blind, for example, there should be evidence to support this attached to the claim in the form of a receipt for the cost of the new blind and/or photos of the broken blind. If the Landlord cannot substantiate their claim, it may be dismissed by the Rentalsman.

NOTE:

By providing the evidence with the claim, significant time is saved in bringing the claim to a conclusion.

NOTE:

Claim Forms are available online at www.snb.ca/irent and at any Office of the Rentalsman location.

WHERE THE RENTALSMAN HAS NO AUTHORITY• premises occupied for business or agricultural purposes with

living accommodation attached under a single tenancy agreement;

• living accommodations located in a building used in part for non-residential purposes if the occupancy of the living accommodations is conditional upon the occupant continuing to be an employee of or perform services related to a business carried out in the building;

• living accommodations occupied as a vacation home for a seasonal or temporary period

• living accommodations where the tenant is required to share a bathroom or kitchen facility or both with the landlord and where the landlord resides in the building in which the living accommodations are located;

WHERE THE RENTALSMAN HAS NO AUTHORITY• living accommodations provided in a tourist establishment as

defined under the Tourism Development Act, 2008, if a person resides in the living accommodations for less than ninety consecutive days;

• living accommodations provided by an educational institution to its students where the living accommodations do not have their own self-contained bathroom and kitchen facilities;

• living accommodations provided in a nursing home as defined in the Nursing Homes Act;

• living accommodations located in a community placement resource as defined in section 23 of the Family Services Act;

• living accommodations occupied by a person for penal, correctional, rehabilitative or therapeutic purposes or for the purpose of receiving care;

• living accommodations provided by a religious institution;

WHERE THE RENTALSMAN HAS NO AUTHORITY• living accommodations provided in a hospital facility operated

under the Hospital Act;• living accommodations provided in a psychiatric facility as

defined in the Mental Health Act;• short-term living accommodations provided as emergency

shelter; • living accommodations provided in a youth hostel.

NOTE: The Rentalsman also has no authority to address ‘rent-to-own’ situations.

Questions?For more information, contact any local Office of the Rentalsman or surf our website at www.snb.ca/irent.