In late May, Nova Scotia’s Small Claims Court found Joe Metlege, as president and representative of Templeton Properties, to be in violation of the Residential Tenancies Act when the company made a tenant pay three months’ rent up front at the beginning of a lease.
The violation was mentioned as part of a ruling that saw to put an end to a dispute between a tenant and Templeton Properties. In his ruling, adjudicator Michael J. O’Hara, thoroughly explained his reasons for finding Templeton in violation of the Act.
The court documents described how the landlord had defined the sum of money as neither a security deposit, nor a application fee. Instead, it was defined as prepaid rent. A cosmetic distinction that did little to disguise the actual nature of the sum, according to O’Hara, who then went on to explain why, citing the Act’s definition of a security deposit.
With that in mind, O’Hara made clear how the sum exceeds the legal limit of a deposit.
As he summed up his reasoning, O’Hara further commented on the practice of demanding rent upfront under the guise of being “prepaid”, and how the practice, if left unchecked, could leave “unscrupulous” landlords free to circumvent the rules of the Act.
The reminder from the legislature is timely with a new school year on the horizon. As summer begins to cool off, students move back to the city to continue their studies, and many will be taken advantage of as they look for housing.
In 2014, Students Nova Scotia, a student right’s advocacy group, published a report that investigated off-campus housing in the province. They found a pervasive trend of landlords taking advantage of unwitting students, especially those from outside Canada.
They noted “landlords often capitalize on international students’ unfamiliarity with local laws by asking for several months rent in advance.” The report further landlords’ reason for doing so, claiming it to be “assurance against international students leaving the country and breaking their lease.”
At Saint Mary’s University, almost a third of the student body is international. Overseeing them all, as part of Saint Mary’s Board of Governors, is Joe Metlege, here listed as Joseph. He was appointed in 2012, the same year he received his MBA from Saint Mary’s, according to his LinkedIn-page.
Sophie Helpard, Executive Director of Students Nova Scotia, confirms the widespread unlawful practice of demanding rent in advance. She also says more needs to be done to educate students.
“A large part of protecting students from these kinds of, essentially abuse, would be to look at knowledge campaigns and make sure that students understand their rights,” she says. “A lot of partners have the responsibility to educate students, whether it be the universities themselves or the municipal government, specifically. Even landlords, the police, bylaw enforcers and student unions. I think everyone has a role to play.”
Despite the illegality of the practice, there’s nothing in the Residential Tenancies Act that explicitly forbids it. A symptom of a legislative shortcoming in regards to students, says Helpard.
“One thing that’s highlighted throughout the report is looking at the issue that students are rarely legislated for. There is a large gap in things like policy that looks at affordable housing. Student access is not as protected, and so I definitely think that’s prevalent,” she says.
Templeton Properties owns apartment buildings all over Halifax. An overview of the properties can be here.