Guide for Landlords Renting Out Properties in New Brunswick

Renting out a property in New Brunswick can be a rewarding investment, but it requires careful planning, compliance with legal obligations, and effective property management. This guide will walk you through the key steps, responsibilities, and tips to become a successful landlord.

1. Understanding Legal Obligations

Residential Tenancies Act (RTA)

Familiarize yourself with the RTA, the primary legislation governing landlord-tenant relationships in New Brunswick. Key points include:

Security deposit rules

Notice periods for evictions

Maintenance and repair obligations

Rent increase guidelines

Register Your Property

If required, ensure your property is properly registered with local authorities.

Fire and Safety Standards

Ensure the property complies with New Brunswick's fire safety regulations, including:

Functional smoke alarms and carbon monoxide detectors

Clear and accessible exits

Adequate heating systems

2. Preparing Your Property

Repairs and Maintenance

Make necessary repairs to ensure the property is safe and habitable. Check:

Plumbing and electrical systems

Heating and cooling systems

Roofing and structural integrity

Curb Appeal

Attract tenants by improving the property's exterior. This could include landscaping, fresh paint, or cleaning walkways.

Amenities and Upgrades

Consider adding popular features like appliances, parking, or energy-efficient upgrades to increase the property’s value and appeal.

3. Setting Rent and Terms

Determine Market Rent

Research similar rental properties in your area to set a competitive rental rate. Tools like CMHC’s Rental Market Reports can help.

Draft a Lease Agreement

Create a lease agreement that complies with New Brunswick's laws. It should include:

Rent amount and due date

Security deposit terms

Responsibilities for utilities and maintenance

House rules (e.g., smoking, pets, etc.)

4. Marketing Your Property

List Your Property Online

Use platforms like Kijiji, Facebook Marketplace, or rental-specific websites to advertise your property. Include:

High-quality photos

Clear and detailed descriptions

Rent price and availability date

Traditional Methods

Post flyers in local businesses or advertise in community newsletters.

5. Screening Tenants

Application Process

Require prospective tenants to complete an application with:

Employment details

References (previous landlords or employers)

Consent for a credit check

Screening Tips

Verify employment and income

Speak with references

Check for past rental disputes

6. Managing the Tenancy

Move-In Inspection

Conduct a detailed inspection with the tenant and document the property's condition using photos.

Collect Rent

Establish a system for collecting rent, such as post-dated cheques, e-transfers, or online platforms.

Maintenance Requests

Respond promptly to maintenance and repair requests to maintain a positive landlord-tenant relationship and meet legal obligations.

Communication

Maintain open, respectful communication with tenants while respecting their privacy.

7. Dealing With Challenges

Late Rent Payments

If rent is late, issue a formal notice as required by the RTA. Consider setting up a payment plan if appropriate.

Evictions

Follow the RTA’s procedures for issuing eviction notices, which may vary based on the reason (e.g., non-payment, breach of lease).

Property Damage

Document and address damage promptly, and deduct repair costs from the security deposit if applicable.

8. Preparing for Tenant Turnover

Move-Out Inspection

Conduct a final walkthrough with the tenant and compare it to the initial inspection.

Return of Security Deposit

Return the deposit within 7 days of the tenancy ending, minus any deductions for damages or unpaid rent (with receipts).

Re-Listing the Property

Clean, repair, and relist the property promptly to minimize vacancy.

9. Tax Considerations

Rental income must be reported on your tax return. Keep records of expenses like:

Repairs and maintenance

Mortgage interest

Property taxes and insurance

10. Resources for Landlords in New Brunswick

Service New Brunswick: Residential Tenancies Office (guidance on landlord-tenant issues)

Canada Mortgage and Housing Corporation (CMHC): Market data and resources

Landlord Associations: Join groups for networking and support

By staying informed, maintaining open communication, and managing your property responsibly, you can enjoy a successful and stress-free experience as a landlord in New Brunswick.