Renting in Northwest Territories

CMHC for Consumers	November 2006

In the Northwest Territories (NWT) 53% of rental housing is found in the private market and the remaining 47% comprises subsidized public housing (low-cost, low-income housing) and staff housing. In some NWT communities, public/staff housing comprises the majority of the rental market, with a minimal private rental market. Subsidized Public Housing is exempt from sections of the Residential Tenancies Act. Local Housing Organizations, Authorities and Associations administer Public Housing, following guidelines that were initially established by the NWT Housing Corporation. The public must contact the individual organizations to confirm availability and eligibility requirements. Exception: This section does not apply to subsidized public housing.

Governing or Regulatory Body

Department of Justice, Government of the Northwest Territories

Name of Act / Regulations

Residential Tenancies Act

Types of Housing/Living Arrangements Covered by the Provincial Legislation

All residential rental premises.

Exclusions:

hotels, motels, tourist homes, hostels and temporary shelters;
co-op housing (unless rented out to a person who is NOT a co-op member);
living quarters rented to hospital staff and their families, either on a seasonal or a 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;

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.

Types of Rental Periods

Leases can be periodic (week-to-week or month-to-month); or fixed term (the tenancy will end on a specified date).

Is a signed lease required?

No. A tenancy agreement may be written, verbal or implied. A written tenancy agreement is recommended, but the law does not require it. Most landlords use written agreements.

Is a signed move in/move out checklist required?

Yes, a signed checklist is required whenever a security deposit is requested and the landlord and tenant must both sign an inspection report when the tenancy begins.

Deposits

The equivalent of one month's rent unless the premises are rented on a weekly basis, then the amount of the security deposit may not be greater than the value of one week's rent. Landlords of subsidized housing may use the true market value of the rent to calculate the security deposit.

Note: If the tenancy is for more than week-to-week, the tenant may pay half the security deposit when the tenant moves in and the remainder within three months.

The landlord shall, within 10 days after the tenant vacates the rental premises:

return the security deposit to the tenant with interest (interest on the security deposits is calculated at a rate equal to the chartered bank deposit rate on deposit receipts for 30 days, as determined and published by the Bank of Canada in the Bank of Canada Review, in effect on the first day of January in the year that the interest is credited.) and
give the tenant an itemized statement of account for any part of the security deposit that is being retained by the landlord.

A landlord can retain all or part of the security deposit for repairs of damage caused by a tenant to the rental premises and for any arrears of the rent.

Key Money

Requiring any deposit other than a security deposit is prohibited.

Post-dated Cheques

Landlords may request post-dated cheques, but tenants are not obliged to comply.

Renewal of a Lease Term

When a tenancy agreement ends on a specific date, and if a new yearly tenancy agreement or notice to terminate was not given by either party, then the landlord and tenant shall be deemed to renew the tenancy agreement on that date as a monthly tenancy.

Exceptions: The Residential Tenancy Act does not apply to Northwest Territories Housing 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 employed by the unit's owner.

Terminating a Lease: Notice and Timing

Prior to a lease terminating, it is the responsibility of landlord and tenant to re-negotiate terms or terminate the lease. Tenants may not give notice during a fixed term lease, rather at the end of the fixed term. Landlords may only terminate a tenancy for specified reasons as set out in the legislation 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. When a lease is renewed, unless otherwise agreed, other than the new term of the lease, all other conditions of the lease remain the same.

A notice of termination from either a landlord or a tenant must meet the following requirements:

The notice must be in writing and signed by the landlord or tenant giving the notice;
The notice must identify the rental premises;
The notice must state the date when the tenancy is to terminate;
The notice must state the reason for the termination.

If the notice is not proper, or is not properly served, it is invalid and the tenancy continues.

A tenancy may only be terminated by:

a written agreement of the landlord and tenant;
in limited circumstances, by notice given by the landlord;
by notice given by the tenant;
by legal order;
where the premises are provided to an employee as a job benefit, by lawful termination of the tenant's employment;
by abandonment of the premises by the tenant.

Termination by a tenant of a fixed-term agreement must occur no later than 30 days before the end of the term. For a periodic tenancy agreement (an agreement that does not specify a date of termination) the following cases apply:

for a weekly tenancy, at least seven days before the termination date stated in the notice;
for a monthly tenancy that has continued for less than 12 months, at least 30 days before the termination date stated in the notice;
for a monthly tenancy that has continued 12 months or more, at least 60 days before the termination date stated in the notice.

Assignments and Sublets

Tenants may sublet their premises if the landlord consents. If the landlord refuses consent, the tenant may appeal to and obtain permission from 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.

Tenants can assign their tenancy with the landlord's consent. If the landlord refuses, there is no appeal to the Rental Officer. When a tenancy is assigned, the former tenant transfers all of his or her rights and duties to the new tenant. Landlords are allowed to charge for granting consent to an assignment or sublease, up to a maximum of $50.00.

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

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

Rent Increases: Notice and Timing

A landlord may not increase the rent more than once every 12 months. The landlord must give at least 3 month's written notice of the increase. A tenant who receives a proper notice of rent increase may treat the notice as a notice to terminate the tenancy. To terminate the tenancy, the tenant must inform the landlord in writing of his or her decision to vacate. The landlord may re-rent the premises, but must keep the rent for the new tenant at the same level stated in the notice.

Late Rent Payments

A tenant who pays his/her rent later than the dates specified by the tenancy agreement is subject to a penalty. The penalty is calculated for each day that the rent is late by multiplying the rent due by the chartered bank deposit rate on deposit receipts for 30 days, as determined and published by the Bank of Canada, in effect on the first day of January in the year that the late payment is calculated and dividing by 365.

Evictions

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" from the NWT Supreme Court Clerk is also required. The landlord delivers the Order of Eviction and the Writ to the Sheriff. The Sheriff first must make a reasonable demand to be let into the premises, but then may force open the door to the premises, if necessary. Resisting the Sheriff in these circumstances can lead to criminal prosecution.

Fine Points

Permitting Landlord Entry to the Premises (Times and Reasons)

Landlords may enter the rental premises between 8 a.m. and 8 p.m. A landlord shall give written notice to the tenant at least 24 hours before the first time of entry, specifying the purpose of entry, the days and the hours during which the landlord intends to enter the rental premises. A tenant may specify alternative days and hours that are reasonable under the circumstances.

A landlord has the right to enter the rental premises to:

perform the landlord's obligations under the Act and tenancy agreement;
inspect the rental premises where the tenant has requested consent to do an assignment or subletting agreement;
show the rental premises to prospective tenants;
show the rental premises to prospective purchasers of the complex;
inspect the rental premises every six months;
permit a mortgagee or an insurer to inspect the premises where a mortgage or insurance coverage is being arranged;
inspect the rental premises on the day the tenant vacates the premises.

A landlord has the right to enter the rental premises without giving the notice required where:

an emergency exists;
the tenant consents at the time of entry;
the landlord has reasonable grounds to believe that the tenant has vacated or abandoned the rental premises.

May the tenant withhold rent for repairs?

No. Tenants may make an application to forward the rent to the Rental Officer until the dispute is rectified.

Changing Locks

Not allowed. Locks to a rental premises can only be changed by mutual consent from the tenant and the landlord. A landlord or tenant shall not change the locks on any entrance to the residential complex in order to interfere with the other's access to the complex.

Pets and Smoking

May a landlord refuse to rent to a tenant who has pets or smokes?

Yes, a landlord may refuse to rent to a tenant who has pets or smokes. If smoking and pets are allowed in the tenancy agreement, or the agreement does not address these issues, then they are permitted in the rental unit.

If a no pets and no smoking clause is written into a lease and the landlord discovers that the tenant has a pet and/or smokes in the rental unit, is this grounds for the landlord to evict the tenant?

Yes, a tenant who has agreed to rent a non-smoking unit and breaches that agreement can be evicted. The landlord may evict the tenant based on a fire insurance and safety clause. If a pet is found, the landlord may evict the tenant on the grounds of either noise disturbance or damage to the property, if the pet is in fact causing such problems.

Other

The Residential Tenancies Act came into effect February 6, 1988. To encourage out-of-court settlements, the Act established a new office and procedures. The Rental Officer is given many of the powers formerly held only by the courts. The Rental Officer provides information, mediates and acts as a judge as circumstances warrant. In cases where parties cannot reach agreement through mediation, the Rental Officer must hold a hearing. At this point in the process, the Rental Officer begins to act like a judge.

Contact Information

For general information about renting in the Northwest Territories contact:

NWT Rental Office
3rd Floor, Panda II Mall
Box 1920
Yellowknife, NT
X1A 2P4
Toll Free: 1-800-661-0760
Tel.: 867-920-8047
Fax: 867-873-0489
http://www.justice.gov.nt.ca/RentalOffice/rentalofficer.htm



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