Residents in Maritime Provinces are getting pushed out by investors focused on profits
Jaclyn Reinhart and her teenage children have been given until the beginning of May to move out from their three-bedroom duplex in Saint John due to a bathroom renovation which includes fixing a cracked tub and other issues. -CBC News
Reinhart believes that it is a tactic by the new owners, who bought the building in 2021 from a local landlord, to replace her with new tenants who can be charged higher rent.
Reinhart, unlike a new tenant, is entitled to six months notice of a rent increase.
The property manager confirms that there are other issues to be addressed, including multiple holes in the wall and a loose door frame.
The new owners are among the many investors from Ontario and British Columbia who have been investing heavily in rental buildings in New Brunswick, which has helped raise property values in many neighbourhoods, increased tax revenues to the city, and have helped revitalize aging buildings, but has also contributed to escalating rents and housing affordability problems.
Brock Rogerson, a Calgary-based investor, who has grown into one of the largest private landlords in Saint John, says prices for rental buildings in Saint John are so low compared to other Canadian cities, landlords can earn higher returns than almost anywhere in North America.
The buying spree has also contributed to escalating rents and housing affordability problems for many, especially lower-income tenants.
The buying spree has attracted both experienced and novice investors, some of whom have been more aggressive than others about boosting rents to earn a return on what they've spent.
“A $5,000 renovation on an undervalued property does not work, so we are renovating the entire apartment and we’ll be finding a new tenant or switching to an Airbnb depending on what would be more profitable.”
See the full story here: https://www.cbc.ca/news/canada/new-brunswick/nb-tenants-new-landlord-1.6753864
