How Halifax Rental Rules Are Complicating Home Sales for Small Landlords in 2025

For small landlords in Halifax, the process of selling a rental property has become increasingly complex thanks to a mix of evolving rental regulations, short-term rental (STR) restrictions, and a fast-moving housing market. As of July 29, 2025, these pressures are not just inconveniences—they’re reshaping the decisions landlords make about holding or selling their investment properties.

Whether it’s long-term tenants with lease protections or short-term rentals rendered unviable by new zoning laws, landlords must now navigate a maze of legal and market challenges to sell their properties profitably—and legally.

1. Rental Regulations That Complicate Sales

Tenant Rights Under the Nova Scotia Residential Tenancies Act

If you're a landlord selling a tenanted property in Halifax, you're not just selling bricks and mortar—you’re selling a legal relationship. The Nova Scotia Residential Tenancies Act protects tenants’ rights throughout the sale process:

• Active Leases Must Be Honoured: A tenant cannot be evicted simply because a property is being sold. Leases remain binding, and the buyer must take on the role of landlord for the remainder of the lease term.

• Showing Rules: Landlords must provide at least 24 hours’ notice for showings, which can only occur between 8 AM and 8 PM. While tenants cannot refuse access if properly notified, repeated or excessive showings can be challenged.

• Eviction for Buyer Use: If a buyer intends to move into the property (or house a close family member), landlords can issue an eviction notice. For month-to-month leases, a minimum of three months’ notice is required. However, fixed-term leases cannot be broken early—the tenant has the right to stay until the lease ends.

Rent Cap Limits Profitability

A 5% annual rent cap remains in effect across Nova Scotia until December 2027—but only applies to existing leases. This has pushed some landlords to sell, especially if they’re locked into leases where the rental income no longer covers rising costs or mortgage payments.

Rental Registry & Safety Compliance

Halifax also requires landlords to register units and comply with stricter health and safety bylaws. Fines for making a unit “unlivable” to push tenants out (a.k.a. renovictions) can reach $10,000, discouraging underhanded attempts to clear out units for a smoother sale. This also increases the administrative burden on landlords trying to sell legally.

2. Short-Term Rental (STR) Regulations

Since September 1, 2023, Halifax has significantly clamped down on STRs (think Airbnb):

• Residential Zone Restrictions: You can only operate an STR from your primary residence. Whole-unit STRs are banned unless the host lives there.

• Impact on STR Landlords: Many small landlords who previously used secondary units or investment properties as STRs have now been forced to either:

  • Convert to long-term rentals (and take on full tenancy responsibilities), or

  • Sell the property entirely to avoid the hassle.

Estimates suggest only 100–200 units may convert to long-term rentals due to these rules—barely a drop in the bucket in Halifax’s housing crisis. For many landlords, selling remains the simpler and more profitable choice.

3. Halifax’s Seller’s Market: A Golden Opportunity—With Strings Attached

Despite the regulatory challenges, the real estate market in Halifax remains tilted in sellers’ favour—at least for now:

Rising Prices & Low Inventory

• Average Sale Price: Jumped from $554,269 in 2023 to $578,913 in 2024 (+4.4%), and a further 5% increase is projected in 2025.

• Inventory: Up 14% year-over-year in April 2025, but still below the “balanced market” range of 1,600–1,800 listings.

• Days on Market: Homes are moving quickly—just 32 days on average in April 2025.

Over-Asking Sales Still Common

In popular neighbourhoods like Halifax South or Fairmount, homes priced between $300K–$499K are drawing bidding wars, with some condos selling up to 26.3% over asking in April 2025. Naturally, landlords want in on that action.

4. The Tenant Complication: Lower Value, Longer Sales

Selling a property with a tenant in place is tricky:

• Reduced Buyer Pool: Many buyers want immediate occupancy. If a tenant is still there, you’ve automatically cut your buyer pool—and possibly your selling price.

• Eviction Isn’t Simple: Even when eviction is possible (for personal use), the process requires strict compliance with rules and timelines. Delays from the Residential Tenancy Board or pushback from tenants can stall or kill deals entirely.

• Cash-for-Keys: Some landlords offer incentives like one month’s rent or help with moving costs to get tenants to leave voluntarily. This can preserve the sale but eats into profit.

5. Rising Costs Are Eating into Landlord Profits

Beyond tenant issues, small landlords are getting squeezed by rising operating costs:

• Maintenance & Repairs: Skyrocketing construction costs and tenant damage reports make upkeep expensive.

• Taxes: Halifax’s property tax rate for multi-residential buildings is now $3.71 per square foot—among the highest in major Canadian cities.

• Mortgage Pressure: If landlords can’t increase rent due to caps, and costs outpace revenue, the numbers often no longer work—especially for single-unit or duplex landlords.

6. Strategies for Small Landlords Looking to Sell

If you’re ready to sell, you need a strategy tailored to Halifax’s rules and market. Here’s what’s working in 2025:

✅ Negotiate with Tenants

Offer a “cash-for-keys” agreement to free up the unit. It’s cleaner and faster than eviction and can help you unlock full market value.

✅ Price Smart

Aim for hot price brackets like $300K–$499K where competition is fierce. Even tenant-occupied properties can draw strong interest if priced right.

✅ Consider Selling STRs

If your short-term rental no longer qualifies under Halifax rules, now might be the best time to cash out. Use sale profits to reinvest in compliant properties or pivot to other markets.

✅ Know the Laws

Work with a REALTOR® who understands Halifax’s tenancy laws. Proper notice, showings, and lease handling are critical to avoid fines and litigation.

✅ Time the Market

With a projected 5% increase in home prices and 6% increase in sales for 2025, aim for high-demand months like spring or early summer to maximize your outcome.

The Balancing Act for Small Landlords

Halifax’s small landlords are being pulled in two directions: regulatory pressure is making renting less appealing, while a hot housing market offers an easy out. With rent caps in place, stricter STR rules, and mounting costs, many are choosing to sell—but doing so requires a careful understanding of tenant protections, eviction rules, and market timing.

While corporate landlords can absorb the red tape, small landlords must weigh every decision. Whether you’re fed up with repairs, tired of tenancy disputes, or just ready to cash in while the market’s hot, know this: the landscape is changing fast, and the best move is an informed one.

Thinking of selling your Halifax rental property?
Let’s talk strategy. I’m Sandra Pike, REALTOR® with Royal LePage Atlantic and one of Halifax’s top listing agents. With over 865 homes sold and deep experience navigating tenant-occupied sales, I’ll help you sell smart, sell fast, and stay compliant.