How to set up a rental property in Nova Scotia

Step 1: Written lease

• No mandatory lease form in Nova Scotia, but a written lease is strongly recommended.
• Nova Scotia legislation terms apply to any written or verbal tenancy regardless.
• Optional standard form: https://www.novascotia.ca/standard-form-lease-form-p
• Both parties sign and keep a copy.

Step 2: Landlord insurance

• Get a rental-dwelling policy (NOT a homeowner policy) before the tenancy starts.
• Homeowner policies typically exclude rental income and tenant-caused damage.
• Consider requiring tenant liability insurance as a lease term.

Step 3: Municipal licensing

• No provincial landlord licence required in Nova Scotia.
• Check with your city or municipality: some require a rental or business licence.

Step 4: Tenant screening

• Run a credit check and reference check with written consent from the tenant.
• Handle personal information per privacy law (PIPEDA or provincial equivalent).
• Human rights law applies: you may not discriminate on protected grounds.

Step 5: Move-in condition report

• No prescribed mandatory move-in inspection form in Nova Scotia. Attaching a written condition report to the lease is recommended.
• Both parties sign and date. Each keeps a copy. Attach dated photos.

Step 6: Security deposit

• Maximum: Max 1/2 month's rent
• Interest: Deposit must be held in trust and interest is payable: verify the current interest rate at novascotia.ca.
• Return deadline: Within 10 days after tenancy ends.
• Security deposit max 1/2 month's rent. Held in trust. Return within 10 days of tenancy ending.

Step 7: Rent increases & notice rules

• Notice required: 4 months' written notice before effective date
• Rent increases are capped at 5% until December 31, 2027 for existing tenants and fixed-term renewals in the same unit (not a new tenant's first lease); one increase per 12 months.
• Residential Tenancies Program: https://beta.novascotia.ca/programs-and-services/residential-tenancies-program

Step 8: Records & receipts

• Hold the deposit in trust. Return it (with interest) within 10 days after the tenancy ends.
• Keep: signed lease, deposit receipt, condition report(s), rent payment records, all correspondence.
• Dispute body: Residential Tenancies Program, https://beta.novascotia.ca/programs-and-services/residential-tenancies-program