Fixed Term leases are NOT A LOOPHOLE

As a landlord in Nova Scotia, you may be wondering about the advantages of offering fixed-term leases to your tenants. Fixed-term leases can be an excellent option for both landlords and tenants, as they offer a variety of benefits that make them a popular choice in the rental market.

As a tenant in Nova Scotia, you may have heard of fixed-term leases and wondered what they are and why they are required. Fixed-term leases are a type of rental agreement where the tenant agrees to rent the property for a specific length of time, usually one year or more. Some people believe that fixed-term leases are a loophole that landlords use to exploit tenants, but in reality, they are required in order to protect the rights of both tenants and landlords.

Firstly, fixed-term leases provide a sense of security for landlords, as they guarantee a specific length of tenancy. This means that you can plan for a certain amount of income and occupancy, which can be particularly important for those who rely on rental income as their primary source of revenue. Furthermore, a fixed-term lease provides the landlord with the opportunity to screen potential tenants and choose the most suitable tenant for their property.

Some people argue that fixed-term leases are a loophole that landlords use to take advantage of tenants, but this is just an uniformed position. Fixed terms are not 'new' and have not been introduced' during the housing crisis. The option has been here for a very long time, we are just seeing them used more and more frequently for the reasons I will state below...

Real Example: A tenant not on a fixed term lease I dealt with stopped paying rent. I took their word that they would catch up next month. Next month came and went and then they were 2 months behind. I served them a hearing for non payment, The hearing was scheduled 4 weeks out (now 3 months with no rent). We had the hearing, and waited another 2 weeks for the verdict.. which ended up in my favor, but... we waited another 1.5 weeks for the tenant to pay (Now 4 months behind in rent). The tenant did not pay and we had to move forward with Small Claims (Now 5 months...) So on and so forth.

Fixed Term Example: Had a tenant do the same exact things as above. Only I didn't have to renew their lease. Out the money, but don't have to worry about having them anymore.

Secondly, fixed-term leases offer benefits for tenants as well. Tenants can have the peace of mind of knowing that they will have a stable living situation for the length of the lease, without worrying about unexpected rent increases or evictions. Additionally, fixed-term leases can be advantageous for tenants who need a set period of time to plan for a move, such as those who are relocating for work, or attending school. Those that know they only need it for a specific period of time. Alternatively they are forced to sign a 1 year re-occurring lease (Periodic) OR a month to month (Which is NOT a preferred option for a landlord)

Another advantage of fixed-term leases is that they can be used to encourage longer-term tenancies. By offering a lease that lasts for a set period of time, landlords can incentivize tenants to stay in the property for the full term, rather than looking for a new place to live every year. This can reduce tenant turnover, which can save landlords time and money on finding new tenants and preparing the property for their arrival. It's a great way for each party to 'feel out' the other party before any longer term contracts are considered.

Additionally, fixed-term leases can provide flexibility for landlords and tenants alike. For example, if a tenant needs to move out before the end of the lease term, the landlord may be able to find a replacement tenant to take over the short term left on the lease, without losing any rental income. On the other hand, if the landlord needs to reclaim the property for personal use, they can do so at the end of the lease term as well.

Fixed-term leases are not a loophole that landlords use to exploit tenants. Rather, they are an important requirement that protects the rights of both tenants and landlords. By providing a clear and defined rental agreement, fixed-term leases offer security and stability to tenants, while ensuring a steady stream of rental income for landlords. It is important for tenants and landlords alike to understand the benefits of fixed-term leases, and to comply with the regulations set out in the Residential Tenancies Act. Fixed term leases are an important aspect of the rental market in Nova Scotia, providing stability, security, and flexibility for both landlords and tenants. Removing fixed term leases would be a terrible idea that could have serious negative consequences for renters and property owners alike.

My thoughts Above.

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