In New Brunswick, landlords and tenants can often avoid the stress of an eviction by negotiating a formal Payment Plan. The Residential Tenancies Tribunal (RTT) offers free mediation services to help both parties agree on a realistic schedule to pay back rent arrears, keeping the tenancy intact and securing the landlord’s income.
Financial emergencies happen to everyone. A sudden job loss, unexpected medical bills, or an emergency car repair can leave a tenant unable to cover rent on the first of the month. Whether you rent an apartment in Riverview, a townhouse in Oromocto, or a condo in Fredericton, falling behind on rent creates massive anxiety.
For landlords, proceeding with an eviction is a time-consuming, expensive process that ultimately leaves them with a vacant, non-paying unit. Often, a much better solution for everyone is to settle the dispute amicably. By establishing a clear, legally documented payment plan, a tenant can slowly catch up on rent while the landlord preserves a previously stable tenancy. 🤝
Step-by-Step Process for Settling Arrears in New Brunswick
Working things out without an eviction requires good faith from both sides. Using the proper provincial channels ensures that any agreement made is enforceable and protective of both parties.
Step 1: Open and Honest Communication
The moment a tenant realizes they cannot make full rent, they should contact the landlord. Landlords are much more likely to negotiate if they are warned in advance, rather than discovering a missing payment on the due date.
Explain the temporary financial hurdle and state clearly that you want to pay. Landlords should listen objectively; keeping a reliable tenant who just hit a temporary rough patch is usually better business than rolling the dice on a new renter.
Step 2: Drafting a Proposed Payment Plan
A payment plan is a written schedule detailing exactly how the arrears will be repaid. For example, if a tenant owes $1,000, they might agree to pay their regular monthly rent plus an extra $200 on the 15th of each month for five months. 📝
The plan must be realistic. If the tenant over-promises and misses a catch-up payment, the trust is broken, and the eviction process will immediately resume.
Step 3: Utilizing RTT Mediation Services
While a private “handshake” agreement is possible, it is highly recommended to involve the Residential Tenancies Tribunal (RTT). The RTT offers free dispute resolution and mediation services specifically for these situations.
A Residential Tenancies Officer acts as a neutral third party. They can help draft the payment plan on an official government form. If the tenant signs an RTT-approved payment agreement, it becomes a legally binding alternative to a Notice to Vacate.
Step 4: Honouring the Agreement
Once signed, the tenant must strictly follow the payment schedule. Payments should be made via trackable methods, such as e-transfers or bank drafts, rather than cash, to ensure a clear paper trail exists. 💼
If the tenant successfully completes all the extra payments, the debt is cleared, and the tenancy continues as normal. If the tenant defaults on the agreed plan, the landlord can generally proceed straight to requesting an Eviction Order from the RTT.
How Much Does it Cost in New Brunswick?
One of the biggest advantages of choosing mediation over eviction is that it is incredibly cost-effective for both sides.
| Service / Support | Estimated Cost (CAD) | Description |
|---|---|---|
| RTT Mediation Services | Free ($0) | The provincial government provides mediation between landlords and tenants at no cost. |
| Drafting the Agreement | Free ($0) | Using standard RTT forms to document the payment plan costs nothing. |
| Legal Consultation | $150 – $300 | Optional. A landlord may consult a law firm if the arrears are excessively large (e.g., $10,000+). |
- Late Fees: Landlords can only apply late fees to the arrears if a specific late fee clause was already written into the original lease. The RTT ensures any late fees are reasonable and not abusive.
- Rent Subsidies: Tenants facing hardship should apply for the New Brunswick Housing Assistance program, which may offer temporary rent supplements to prevent homelessness.
How Long Does the Process Take?
Speed is essential when rent is missing. A proactive tenant and a willing landlord can draft and sign a payment plan within 24 to 48 hours.
If you choose to involve the RTT for official mediation, connecting with an Officer typically takes 3 to 5 business days. The duration of the payment plan itself usually spans anywhere from 1 to 6 months, depending on the size of the debt and the tenant’s income. It is rare for landlords to accept payment plans stretching beyond a year.
Frequently Asked Questions (FAQ)
Does a payment plan cancel an existing Notice to Vacate?
Yes. If the landlord officially accepts a payment plan through the RTT, they agree to suspend the 15-day Notice to Vacate. The eviction is paused as long as the tenant makes the agreed-upon payments.
Can a landlord simply refuse to negotiate?
Yes. Landlords are under no legal obligation to accept a payment plan. If rent is late, they have the absolute right to serve a 7-day Notice to Vacate and proceed with a lawful eviction. Mediation requires mutual consent.
What happens if the tenant misses a payment on the plan?
If the tenant defaults on the agreed RTT payment schedule, the landlord does not have to start the notice period over again. They can immediately contact the RTT to request an Eviction Order.
Do we have to go to a courtroom for mediation?
No. RTT mediation is usually handled informally over the phone, via email, or in a standard office meeting. It is designed to be a low-stress environment without judges or formal court rules.
Can I pay my rent arrears with my security deposit?
No. While you are actively living in the unit, the security deposit held by Service New Brunswick (SNB) cannot be touched. It is only released after the tenancy fully ends.
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