If a tenant breaks a fixed-term lease in New Brunswick, they are generally legally responsible for paying the rent until the lease expires. However, as a landlord, you have a strict legal “duty to mitigate damages,” meaning you must actively advertise and try to find a new tenant as quickly as possible. You can claim lost rent from the security deposit held by Service New Brunswick (SNB).
Having a tenant suddenly pack up and leave before their lease is over can be a significant financial blow. Whether you rent out a condo in downtown Moncton or a single-family home in Fredericton, an unexpected vacancy means lost rental income. Many landlords mistakenly believe that if a tenant breaks the contract, the tenant automatically owes the entire remaining balance of the lease.
While the tenant is financially liable, New Brunswick housing laws require you to take reasonable steps to minimize the financial fallout. 🔍 You cannot simply leave the apartment empty and sue the former tenant for a year’s worth of rent. In this guide, we will outline the clear, step-by-step process to legally recover your lost rent while staying compliant with the provincial Residential Tenancies Act.
Step-by-Step Process in New Brunswick
Recovering lost rent requires thorough documentation and proof that you tried to solve the problem. The Residential Tenancies Tribunal (RTT) expects you to act professionally and promptly once you realize the tenant has abandoned the lease.
Step 1: Confirm the Lease Has Been Broken
First, ensure the tenant has actually moved out and is not just away on vacation. 🚗 Look for returned keys, a completely empty unit, or a written message stating they are breaking the lease. If you are unsure, you can post a 24-hour notice to enter the unit and inspect it. Once you confirm the abandonment, officially take back possession of the property.
Step 2: Start Advertising the Unit Immediately
This is the most critical step. You have a legal “duty to mitigate damages.” This means you must make a genuine, active effort to re-rent the apartment. You should immediately list the unit online, put a sign in the yard, and contact prospective renters. You must list the property at a fair market rate; if you drastically raise the rent and no one applies, the RTT may decide you failed to mitigate your losses properly.
Step 3: Document All Your Rental Efforts
You need proof of your search to show the RTT or Service New Brunswick. 📷 Keep copies of all your online rental advertisements, receipts for paid listings, and a log of how many showings you conducted. If the former tenant disputes your claim for lost rent, this evidence will prove that you tried your best to fill the vacancy quickly.
Step 4: Submit a Claim to Service New Brunswick
In New Brunswick, landlords do not hold the security deposit; it is held by Service New Brunswick (SNB). To recover your lost rent, you must submit a formal claim against the deposit to SNB within seven days of the tenant vacating or the lease ending. You can claim unpaid rent and any physical damages the tenant left behind.
Step 5: Apply to the RTT for Excess Damages
If the security deposit (usually equal to one month’s rent) is not enough to cover the total months the unit sat empty, you must take further action. ⚔ You can file an Application for Assistance with the RTT to seek an official order demanding the former tenant pay the remaining balance. If the tenant still refuses, you may need to take the RTT order to the Court of King’s Bench to garnish their wages.
How Much Does it Cost in New Brunswick?
Trying to recover lost rent involves some out-of-pocket expenses, especially regarding advertising. 💵 Here is a breakdown of what you might spend.
| Type of Expense | Estimated Cost (CAD) | Details |
|---|---|---|
| RTT Application Fee | $0 (Free) | Filing an application for dispute resolution with the Tribunal is completely free. |
| Advertising Costs | $0 – $150 | Paying for premium listings on local rental websites or social media ads to find a new tenant quickly. |
| Lawyer or Paralegal Fees | $200 – $400 / hour | If the outstanding rent is substantial, hiring a local law firm to help enforce the RTT order may be necessary. |
Remember that you cannot charge the tenant arbitrary “lease-breaking penalties.” You can only pursue them for your actual financial losses, such as the exact amount of rent lost while the unit was empty and reasonable advertising costs.
How Long Does the Process Take?
The timeline heavily depends on the local rental market. ⏳ Finding a new tenant might take a few days in a busy city like Saint John, but it could take weeks in a rural area. Once you submit a claim to SNB for the security deposit, it typically takes 2 to 4 weeks for the funds to be released if the tenant does not dispute it. If the tenant fights the claim, the RTT investigation can add an extra 3 to 6 weeks to the process.
Frequently Asked Questions (FAQ)
What does “duty to mitigate” actually mean?
It is a legal principle requiring you to minimize your financial losses. Instead of letting the apartment sit empty for six months and billing the old tenant, you must actively try to find a new renter. You can only charge the old tenant for the time the unit was legitimately vacant despite your best efforts.
Can I automatically keep the damage deposit?
No, because you do not hold the deposit-Service New Brunswick does. You must file a formal claim with SNB within 7 days of the end of the tenancy. If the tenant agrees or ignores the notice, SNB will send you the money.
Can I charge a flat “lease-breaking fee”?
No. Under the New Brunswick Residential Tenancies Act, landlords cannot enforce arbitrary penalties or administrative fees for breaking a lease. You can only seek compensation for actual lost rent and out-of-pocket expenses like advertising or cleaning.
Are there legal reasons a tenant can break a lease early?
Yes. In New Brunswick, a tenant can legally terminate a fixed-term lease early with proper notice if they are fleeing domestic violence, if they require a move to a long-term care facility, or if the landlord has severely breached the lease (like failing to provide heat).
What if I find a new tenant who pays a lower rent?
If the market has cooled and you have to rent the unit for $100 less per month to secure a new tenant, the RTT may allow you to claim that $100 monthly difference from the original tenant until their original lease term expires.
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