BILL NO. 177
(as introduced)
1st Session, 65th General Assembly
Nova Scotia
4 Charles III, 2025
Private Member's Public Bill
Commercial Rent Cap Act
Krista Gallagher
Halifax Chebucto
First Reading: October 3, 2025
Second Reading:
Third Reading:
An Act Respecting
a Commercial Rent Cap
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Commercial Rent Cap Act.
"charitable organization" means an organization that
(a) is registered under the Registry of Joint Stock Companies and is incorporated under the Companies Act or the Societies Act;
(b) is registered as a charity under the Income Tax Act (Canada); and
(c) employs fewer than 50 full-time equivalent employees;
"commercial lease" means a lease agreement between a landlord and an eligible commercial tenant under which the eligible commercial tenant may rent a non-residential property for commercial or charitable purposes;
"Director" means the Director of Residential Tenancies designated under the Residential Tenancies Act;
"eligible commercial tenant" means a charitable organization or a small business that holds a tenant certificate;
"Minister" means the Minister of Service Nova Scotia;
"rent" means the total consideration that an eligible commercial tenant is required to pay under a commercial lease, and includes base rent, common area maintenance fees, operating expenses and all other additional charges that are payable by the eligible commercial tenant to the landlord in exchange for the use of the property and the services, facilities and utilities provided by the landlord under the lease;
"small business" means a company that
(a) is registered with the Registry of Joint Stock Companies and is incorporated under the Companies Act;
(b) has a gross annual revenue of $3,000,000 or less; and
(c) operates independently and is not a subsidiary, franchisee or affiliate of a national or multinational corporation;
"tenant certificate" means a valid and subsisting tenant certificate issued pursuant to this Act.
(2) Except as otherwise provided in subsection (1), words and expressions used in this Act have the same meaning as in the Residential Tenancies Act.
3 (1) A charitable organization or small business may apply to the Minister for a tenant certificate in accordance with the regulations.
(2) An application under subsection (1) must include
(a) a copy of the applicant's most recent notice of assessment or reassessment issued by the Canada Revenue Agency for the taxation year;
(b) a copy of the applicant's certificate of incorporation under the Societies Act or the Companies Act;
(c) in the case of a small business, an affidavit or declaration from the shareholders stating that they hold beneficial ownership of the small business;
(d) where the charitable organization or small business is a party to a lease respecting commercial property, the lease agreement; and
(e) any other information or documents prescribed by the regulations to verify the status of the charitable organization or small business.
(3) Upon receiving an application under subsection (1), the Minister may issue the applicant a tenant certificate declaring the holder to be an eligible commercial tenant.
(4) A tenant certificate is valid for one year from the date of its issue and may be renewed in accordance with the regulations.
4 (1) The following persons may not apply for a tenant certificate under Section 3:
(a) a company that is listed on a stock exchange;
(b) a chain or franchisee business;
(c) a tenant who is an affiliate of the landlord, sharing common corporate control;
(d) an organization or business that has an annual gross revenue of more than $3,000,000.
(2) A person who circumvents or attempts to circumvent this Section through artificial restructuring, nominee ownership or shell entities is guilty of an offence and liable on summary conviction to
(a) in the case of an individual, a fine not exceeding $50,000; or
(b) in the case of a corporation, a fine not exceeding the greater of $500,000 or two per cent of the corporation's annual revenue from the preceding fiscal year.
5 (1) An eligible commercial tenant may designate, in writing, an authorized representative, including a lawyer, a licensed real estate broker or a commercial leasing agent, to act on the tenant's behalf in dealing with the landlord under this Act and the commercial lease.
(2) Where a designation has been made under subsection (1), the eligible commercial tenant shall give notice of such designation, in writing, to the landlord.
(3) Upon receiving written notice of the designation, the landlord shall recognize the authorised representative for all purposes of communication, negotiation and service of documents under this Act and the lease as if such communication, negotiation or service was with the eligible commercial tenant.
(4) Nothing in this Section requires the landlord to pay any fee, commission or remuneration to an authorized representative unless the landlord has expressly agreed in writing to do so.
(5) An eligible commercial tenant may revoke or replace the authorized representative at any time by providing written notice to the landlord.
(b) be for a term of not less than 12 months, unless the eligible commercial tenant waives this in writing;
(c) state that any rent increase applicable to an existing eligible commercial tenant cannot
- (i) occur during the first 12-month period following the commencement of the lease,
(ii) occur more than once in a 12-month period, or
(iii) exceed the annual change in the Consumer Price Index for the Province published by Statistics Canada;
(d) state that the rent control measures under clause (c) apply only to an existing eligible commercial tenant and do not apply where the lease is transferred to a new tenant; and
(e) contain an itemized list of all categories of common area maintenance fees and other operating charges payable by the eligible commercial tenant.
(2) Notwithstanding any lease, agreement, waiver, declaration or other statement to the contrary, where the relationship of landlord and eligible commercial tenant exists, the landlord shall maintain the premises in a condition suitable for the agreed business or charitable activity of the eligible commercial tenant.
(3) In addition to the conditions provided in this Act, a landlord and an eligible commercial tenant may provide in a commercial lease for other benefits and obligations that do not conflict with this Act.
7 Where a charitable organization or small business obtains a tenant certificate at any time during the term of an existing lease agreement respecting commercial property, upon the expiry of the lease term,
(a) the lease is deemed to be a commercial lease containing the terms and conditions set out under Section 6; and
(b) the rights and obligations of landlords and eligible commercial tenants under this Act apply to the parties under the agreement.
8 After the first 12 months of a tenancy under a commercial lease and every year thereafter, the landlord shall provide an eligible commercial tenant with a written statement setting out
(a) the total common area maintenance fees charged to the eligible commercial tenant in the previous year broken down by category of expense, including cleaning, utilities, insurance, repairs, security and management fees; and
(b) any increases in any of the categories of expense that may be charged to the eligible commercial tenant in the next year.
9 (1) Where a service, facility or amenity that is included in a commercial lease or was otherwise provided by the landlord to the eligible commercial tenant at the commencement of the tenancy is withdrawn or substantially reduced, the withdrawal or reduction is deemed to be an increase in rent.
(2) An eligible commercial tenant may apply to the Director for a determination of whether a withdrawal or reduction of services, facilities or amenities has occurred and for an order reducing the rent payable under the commercial lease accordingly.
10 (1) Where an eligible commercial tenant continues to occupy the premises after the term of the commercial lease has expired and the landlord has not provided a notice of non-renewal at least 60 days before the expiration date of the lease, the lease is deemed to be continued on a month-to-month basis under the same terms and conditions, including rent.
(2) Where a month-to-month lease exists under subsection (1), the landlord may increase the rent payable by the eligible commercial tenant only if
(a) at least 12 months have passed since the last rent increase; and
(b) the landlord provides the eligible commercial tenant with written notice at least 60 days in advance of the increase.
(3) A landlord shall not increase the rent payable by an eligible commercial tenant under this Section by more than the annual change in the Consumer Price Index for the Province published by Statistics Canada.
(4) Where a month-to-month lease exists pursuant to subsection (1), the landlord or the eligible commercial tenant may terminate the lease by providing the other party with a notice to quit the premises at least 60 days in advance.
(a) property tax expenses; and
(b) utility expenses, such as water or energy,
(c) property management salaries and administration costs;
(d) marketing and advertising costs; or
(e) fines, penalties or costs arising from the landlord's negligence or regulatory non-compliance;
"eligible expenditures" means expenditures that
(a) substantially preserve or extend the life of the property;
(b) substantially improve the health, safety, accessibility or energy efficiency of the premises; or
(c) provide new facilities or services for the benefit of the eligible commercial tenant.
(2) Notwithstanding subclause 6(1)(c)(iii) and subsection 10(3), a landlord may apply to the Director for approval to increase the rent payable by an eligible commercial tenant by more than the annual change in the Consumer Price Index for the Province if the landlord can show that the landlord incurred eligible expenditures or an increase in eligible costs.
(3) An application under this Section must include
(a) detailed descriptions of the work performed or utilities paid to incur the eligible expenditure or increase in eligible costs;
(b) proof of the eligible expenditure or increase in eligible costs, such as a contract or an invoice; and
(c) a calculation of the proposed rent increase attributable to the eligible expenditure or increase in eligible cost, including an amortization schedule.
(4) The Director may approve, partially approve or deny an application made under this Section after considering
(a) whether the expenditure or increase in costs is eligible;
(b) whether the requested rent increase is fair and reasonable; and
(c) the interests of tenants in fair and predictable rent.
12 Any rent collected by a landlord from an eligible commercial tenant that exceeds the amount of rent allowed under this Act is a debt due to the eligible commercial tenant or former eligible commercial tenant who paid the rent.
13 Two or more eligible commercial tenants may make an application to the Director jointly, in accordance with the regulations, if the application is in respect of the same landlord and residential premises that are in the same building.
14 (1) A landlord may not terminate or refuse to renew a fixed-term commercial lease solely on the grounds that the term of the lease has expired.
(2) Upon the expiry of a fixed-term commercial lease, the eligible commercial tenant is entitled to
(a) a renewal of the lease under the same terms and conditions; or
(b) a continuation of the tenancy on a month-to-month basis in accordance with Section 6,
as determined by the eligible commercial tenant.
(3) Subsection (2) does not apply where the landlord can demonstrate valid grounds for not renewing or continuing the lease, including
(a) a substantial breach by the tenant of the lease terms and conditions;
(b) a bona fide intention of the landlord to occupy or repurpose the premises for the landlord's own commercial use;
(c) major renovations that require vacant possession; and
(d) demolition or sale of the premises.
(4) Where a landlord claims that the circumstances set out in clause (3)(b) or (c) apply, the landlord shall file with the Director notice and any supporting documentation required by the Director to prove that such circumstances exist.
(5) A landlord who attempts to circumvent this Section through consecutive non-renewable fixed-term commercial leases or the deliberate non-renewal of a commercial lease without cause is guilty of an offence and liable on summary conviction to
(a) in the case of an individual, a fine not exceeding $50,000; and
(b) in the case of a corporation, a fine not exceeding the greater of $500,000 or two per cent of the corporation's annual revenue from the preceding fiscal year.
15 (1) A landlord may not terminate a commercial lease, or evict an eligible commercial tenant, except for
(a) a substantial breach by the tenant of the lease terms and conditions;
(b) unpaid rent exceeding 60 days in arrears;
(c) a bona fide intention of the landlord to occupy or repurpose the premises for the landlord's own commercial use;
(d) major renovations that require vacant possession; or
(e) demolition or sale of the premises.
(2) A landlord may only terminate a commercial lease under clause (1)(b) after
(a) providing written notice to the tenant that rent is in arrears; and
(b) following the providing of such notice, providing the tenant with a reasonable opportunity to pay the rent that is in arrears and any applicable legal fees.
(3) Where a landlord claims that the circumstances set out in clause (1)(c) or (d) apply, the landlord shall file with the Director notice and any supporting documentation required by the Director to prove that such circumstances exist.
16 Upon the expiry or termination of a lease, the eligible commercial tenant shall surrender the premises in the same condition in which the premises were received, subject only to
(a) normal wear and tear resulting from reasonable use of the premises; and
(b) any damage or deterioration cause by force majeure or events beyond the tenant's control.
17 (1) No landlord, property manager or commercial property owner shall refuse to rent, lease, renew a lease or otherwise make available a commercial premises to a prospective tenant solely because that tenant is an eligible commercial tenant.
(2) Any refusal to rent a commercial premises to an eligible commercial tenant must be communicated to the prospective tenant in writing, stating the reasons for the refusal.
(3) A prospective tenant who believes they have been denied a tenancy in contravention of this Section may file a complaint with the Director, who shall investigate the refusal.
(4) Where, after an investigation, the Director concludes that a prospective tenant was denied a tenancy in contravention of this Section, the Director may impose remedies, including ordering the landlord offer the perspective tenant a tenancy respecting the commercial property, imposing administrative penalties on the landlord as prescribed by the regulations, or ordering the landlord to compensate the prospective tenant.
18 (1) The Director has the same powers and duties conferred or imposed on the Director under the Residential Tenancies Act with respect to residential tenancies and residential property as with commercial lease agreements or commercial property involving an eligible commercial tenant.
(2) Subject to the regulations, Sections 13 to 17F of the Residential Tenancies Act apply with necessary changes to commercial leases.
19 (1) Any person who violates or fails to comply with any order, direction or other requirement of the Director or the Small Claims Court or contravenes this Act, or any landlord who takes action against an eligible commercial tenant because of any resort by that tenant to any governmental authority in respect of the commercial premises or because an eligible commercial tenant attempts to enforce or secure the tenant's rights under this Act, is guilty of an offence and liable on summary conviction to
(a) in the case of an individual, a fine not exceeding $50,000; or
(b) in the case of a corporation, a fine not exceeding the greater of $500,000 or two per cent of the corporation's annual revenue from the preceding fiscal year.
(2) In the case of a contravention of this Act involving an existing commercial lease, a fine imposed under subsection (1), 4(2) or 14(5), may not be less than the equivalent of one year of rent for the commercial premises.
20 (1) The Governor in Council may make regulations
(a) respecting the application process for a tenant certificate, including the procedures the Minister must follow to verify the status of a charitable organization or a small business;
(b) prescribing information or documents that may be required for the purpose of clause 3(2)(e);
(c) respecting the renewal process and renewal term of a tenant certificate;
(d) prescribing administrative penalties that may be imposed under subsection 17(4);
(e) increasing the amount stated under clause (b) of the definition of "small business" in subsection 2(1) and clause 4(d) by the annual increase in the Consumer Price Index for the Province as published by Statistics Canada for the previous calendar year, no sooner than 12 months after the coming into force of this Act and not more than once in each calendar year;
(f) respecting the application of Sections 13 to 17F of the Residential Tenancies Act to commercial leases;
(g) prescribing a standard form of lease which may be used by landlords and eligible commercial tenants;
(h) defining any word or expression used and not defined in this Act;
(i) respecting any matter which the Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Act.
(2) The exercise by the Governor in Council of the authority set out in subsection (1) is a regulation within the meaning of the Regulations Act.
21 This Act has effect on and after January 1, 2026.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2025 Crown in right of Nova Scotia. Created October 3, 2025. Send comments to legc.office@novascotia.ca.
