When considering whether to give shelter to a friend or family member, homeowners sometimes overlook the possibility of forming a residential tenancy. 

If you’re considering allowing someone to move in with you, you may be trying to help. You may not be trying to make a profit and may not intend to be a landlord. 

However, in some cases, it’s best for everyone involved to form a residential tenancy anyway.

It makes the most sense to consider forming a tenancy when:

• The person may be staying long-term (more than a couple of weeks)
• The person is staying short-term, but you want to set clear boundaries for their stay
• You cannot afford to allow the person to stay for free.

Important: If the person is paying money as part of the arrangement, they can be deemed a tenant by the Residential Tenancies Program even if you don’t have a written lease. There is more information about that below. 

Landlords and tenants are advised to use a standard form of written lease called a Form P. However, you can be in a residential tenancy even if you don’t have a written lease. That’s because a tenancy can be formed by an occupant paying money to the property owner. 

If someone moves into your home and is paying you money as part of the arrangement, the Residential Tenancies Program can deem you a landlord even if you don’t have a written lease. 

When that happens, they will deem you to be in a periodic, month-to-month lease with an anniversary date corresponding to when the tenant first moved in.

That means it’s possible to form a tenancy even if the people involved:

• Did not sign a lease,
• Did not intend to form a tenancy, 
• Do not call themselves “landlord” and “tenant”.

You may hesitate to enter a lease agreement because you are concerned about disputes arising. 

However, disputes between homeowners and occupants can arise whether a formal lease agreement exists. 

People sometimes worry that forming a tenancy complicates things, but it can do the opposite. A tenancy agreement can make it easier to resolve disputes by clearly outlining the rights and responsibilities of both parties and by giving them access to a specialized dispute resolution process. 

Without a tenancy agreement, disputes are more likely to be complex and costly. 

If you form a residential tenancy, you and your tenant will have certain rights and obligations. By establishing a tenancy, both the landlord and tenant agree to adhere to the standard conditions that apply to all residential tenancies, such as statutory conditions regarding the condition of premises, rules regarding landlord entry, and ending the tenancy.

Before you enter a tenancy agreement, read the Renting Guide for Tenants and Landlords from the Residential Tenancies Program. 

Here are some key aspects to consider:

• Condition of premises: Tenants can request repairs if the property is improperly maintained.
• Right to request a sublet or assignment: Tenants can request to sublet or assign their lease to another person.
• Limits on landlord's ability to make rules: Landlords can only impose reasonable rules.
• Limits on the landlord’s ability to end the tenancy: Landlords can only end a tenancy for a valid reason and by following the proper procedure. For more detailed information, read the Guide to Ending a Tenancy for Tenants and Landlords. 
• The difference between fixed-term and periodic leases: Fixed-term leases have a specific end date and do not automatically renew like periodic leases do. This is a critical detail to understand. There is more information below. 

Fixed-term Leases

A fixed-term lease specifies both a start and an end date. Before moving in, the tenant agrees to vacate the property by the specified end date. The lease can have any duration. 

This type of lease does not automatically renew, so if landlords and tenants wish to continue it, they must sign a new lease agreement. The new agreement can be for another fixed-term or periodic lease. 

Neither party must give notice if they choose not to renew the lease.

Periodic Leases

In contrast, a periodic lease begins with a start date but does not have a specified end date. The term length can vary. Periodic leases can be year-to-year, month-to-month, or week-to-week. 

A periodic lease automatically renews for another term at the end of each term. 

The tenant can end a periodic lease for any reason if they provide proper notice. 

The landlord can only end a periodic lease with a valid legal reason (such as unpaid rent or a serious safety issue).

A Fixed-term Lease can turn into a Periodic Lease

If a fixed-term lease expires and the people involved don’t sign a new lease agreement, but the tenant remains in the property with the landlord's permission, the Residential Tenancies Program will deem the tenant to be in a periodic month-to-month lease. 

If you use a fixed-term lease

• Remember the end date of your fixed-term lease, and if you want to continue in a fixed-term arrangement, sign a new one before the first one expires.  
• Using Form P is essential. If you don’t use the proper form, the Residential Tenancies Program can deem you to be in a periodic month-to-month lease. 

Discussing rent with a family member or friend may feel uncomfortable, but it's a necessary part of any tenancy agreement. 

You are not required to charge fair market rent. You can set an amount that covers the additional costs associated with someone living on your property, such as increased utility bills or maintenance expenses.

If you charge below market rent, knowing Nova Scotia's rent cap regulations is important. These regulations restrict rent increases to a maximum of 5% per year. This means you are limited to raising the rent by no more than 5% annually, even if you initially set the rent at a very low amount. 

Here is more information about the rent cap. 

With a tenancy agreement, the individual living in your property is identified as a tenant who pays rent in exchange for the right to reside there. This helps ensure that the tenant will not develop or claim equity in your property, as the lease shows their payments are strictly for rent.

While a tenancy agreement effectively prevents ownership-related disputes, it does not eliminate potential disputes that may arise from the terms of the tenancy agreement itself.

Landlords and tenants in Nova Scotia use clauses contained in the standard lease called a Form P. This form simplifies the rental process by providing a pre-written contract for the parties. 

This standardized lease complies with Nova Scotia's Residential Tenancies Act, providing legal protection for both sides. It is relatively easy to use, saves time and effort, and covers essential aspects of the rental agreement, such as rent payment, maintenance responsibilities, security deposits, and termination procedures. 

The standard lease promotes fairness, transparency, and a positive landlord-tenant relationship. 

Form P is essential if you want to form a fixed-term tenancy. If you don’t use the proper form, the Residential Tenancies Program can deem you to be in a periodic month-to-month lease. 

Establishing a tenancy makes it much easier for third parties to understand the nature of your arrangement. 

The roles are clear:

• The landlord, as the property owner, is responsible for maintaining the property, ensuring it meets habitable living standards, and addressing any major repairs that may arise.
• The tenant, who does not own the property, is responsible for keeping the rental unit clean and in good condition. They must also take responsibility for any damage they or their guests cause, ensuring the property remains in the same condition as when they moved in, aside from normal wear and tear.

There are also clear rules and procedures regarding various aspects of the tenancy, including:

• The landlord's entry into the rental unit: Landlords must provide 24-hour written notice before entering the unit except in emergencies.
• Terminating the tenancy: There are detailed procedures for ending a tenancy, including the required notice periods for landlords and tenants.
• Handling property left behind after the tenancy ends: There are procedures for dealing with any belongings left by the tenant after they vacate the property, including notice requirements and disposal procedures.

• Eviction procedures: There are specific procedures for eviction, including the grounds for eviction and steps the landlord must follow.
• Dispute resolution: There are established mechanisms for resolving disputes between landlords and tenants (more about this below). 

There is a specialized residential tenancies dispute resolution process for landlord and tenant disputes. This system is designed to manage conflicts between landlords and tenants efficiently and fairly. Here are some key advantages compared to going to court:

1. Faster Resolution: The dispute resolution process is generally quicker than court proceedings, helping to resolve issues promptly.
2. Cost-Effective: The application fee is much lower, and the parties do not require expensive legal representation.
3. Less Formal: The process is less formal and more accessible, making it easier for both parties to present their cases without the complexities of a courtroom setting.
4. Single Subject: The Residential Tenancies Officers who hear the cases deal exclusively with landlord-tenant issues.
5. Multiple opportunities: Tenants and landlords can approach the dispute resolution process multiple times if needed.
6. Simple appeals: Either party can appeal the Residential Tenancies Officer's decision to Small Claims Court. This process is much faster and easier than the appeal process in a court proceeding. 

Overall, the Residential Tenancies dispute resolution system offers a streamlined, cost-effective, and fair alternative to the traditional court system, making it a valuable resource for resolving tenancy disputes.

You can access free information and resources through the Residential Tenancies Program. 

The Residential Tenancies Program is the program of the Provincial Government that administers the Residential Tenancies Act and deals with disputes between landlords and tenants. It is a program of Service Nova Scotia. 

You can find information about residential tenancies on the Residential Tenancies Program website. 

You can also talk to a staff person at the Residential Tenancies Program directly by calling Service Nova Scotia at 1-800-670-4357 and following the prompts. Alternatively, you can attend your nearest Access Nova Scotia location. 

If you prefer not to be a landlord, allow the person to stay for free. Do not accept any money or in-kind contributions from your guest. 

Any financial contributions towards bills or maintenance may be considered rent, which could result in a deemed tenancy.  

Any in-kind contributions could result in complicated disputes over the equity in your property.  

If you require any payment or exchange of value (money, goods, or services), you should either sign a lease or consult a lawyer.

Yes, if you sign a lease, the other person can raise complaints about the premises. 

Under the Residential Tenancies Act, tenants have the right to live in a property that meets health, safety, and maintenance standards. 

If the tenant has concerns about maintenance or repairs, the tenant can apply to the Residential Tenancies Program for dispute resolution, and a Residential Tenancies Officer may order you to make necessary repairs or improvements.

Not necessarily. 

As mentioned above, disputes about removing someone from your home can be more complex and costly without a tenancy agreement. 

That’s because if you don’t form a residential tenancy, you leave open the possibility of more complicated legal arguments related to the use and ownership of your property. 

Although signing a lease means entering into a legally binding agreement that provides the tenant with certain rights, the lease agreement can make it easier to resolve disputes by clearly outlining the rights and responsibilities of both parties and by giving you access to a specialized dispute resolution process. 

To end the tenancy, you must follow the procedures outlined in the Residential Tenancies Act, such as providing proper notice or having legal grounds like non-payment of rent or breach of lease terms.

However, using fixed-term leases and diligently updating them before expiry can simplify things. Fixed-term leases provide a precise end date, allowing you to reassess and decide whether to renew the lease.

You can get more information from the following sources:

Residential Tenancies Program:

• Phone: Toll-Free 1-800-670-4357 (within Nova Scotia) or 902-424-5200.
• Email: Inquiries can be submitted using this contact form. 
• Website: Visit the Residential Tenancies Program website for detailed information and resources.

Dalhousie Legal Aid Tenants’ Rights Guide:

Although it’s written for tenants, the Tenants’ Rights Guide is an excellent source of information about landlord-tenant law in Nova Scotia, and landlords can also benefit from it. 

Rental Housing Providers Nova Scotia

Rental Housing Providers Nova Scotia is a member-driven organization representing landlords' interests in Nova Scotia. Their website includes educational resources (for a fee) and webinars. 

Legal Information Society of Nova Scotia (LISNS):

Check our housing page for additional resources and information, or contact us with specific questions about NS law.