NWT Section 47(5) Re-Renting Rule: What Landlords Need to Know

Most NWT landlords know about the 12-month rule and the three-month notice period. Fewer know that Section 47(5) sets a re-renting requirement when a tenant leaves in response to a rent increase, while Section 60(3) addresses compensation if the landlord did not genuinely intend to increase the rent.

How Sections 47(5) and 60(3) Work

When you serve a notice of rent increase, the tenant can invoke their Section 47(4) right to treat it as a termination notice effective the day before the increase and must inform you in writing of that intent. If they do, Section 47(5) requires you to give the new tenant a copy of the notice before agreeing to a tenancy and rent the premises at the amount stated in the notice.

If the new rent is lower than the amount in the notice, the former tenant may apply under Section 60(3), but compensation is not automatic. The Rental Officer must find that you did not in good faith intend to increase the rent. If that finding is made, the officer may order reasonable moving expenses or other additional reasonable expenses, including increased rent for up to 12 months.

A Practical Example

Say you currently charge $2,000 per month and serve a notice raising rent to $2,400. Your tenant decides $2,400 is too steep and leaves under Section 47(4). You list the unit, find the market is softer than expected, and sign a new tenant at $2,200.

The departed tenant may apply to the Rental Officer under Section 60(3). The $200 difference is relevant context, but it does not by itself establish entitlement to compensation; the Rental Officer must also find that you did not in good faith intend to increase the rent.

Why This Rule Exists

Section 47(5) requires the premises to be rented at the amount stated in the notice when a tenant ends the tenancy under Section 47(4). Section 60(3) provides a separate remedy where the Rental Officer finds the landlord did not in good faith intend to increase the rent.

The rule forces your proposed increase to be genuine. The number on your notice is not just a negotiating position — it is a commitment.

How to Protect Yourself

Set a realistic figure. Research comparable rents before settling on a number. If a tenant leaves and the premises are rented below the noticed amount, Section 47(5) still applies, and Section 60(3) compensation may be available if the Rental Officer finds the increase was not intended in good faith.

Document market conditions. If you can show that market conditions shifted between the notice date and the re-renting date (vacancy rates changed, comparable rents dropped), that context may be relevant at a hearing — though the statute does not explicitly carve out a market-conditions defence.

Consider the timeline. If the tenant vacates and the unit sits empty, you are paying holding costs at zero income. The temptation to drop the price is real, but renting below the noticed amount after a Section 47(4) termination may breach Section 47(5).

The Bigger Picture

Section 60(3) is one of the NWT's less visible tenant protections, and it is the one most likely to catch a self-managing landlord off guard. The Northwest Territories Rent Increase Guide includes a Section 60(3) risk assessment worksheet that walks you through the re-renting decision — what you can charge, what triggers a claim, and how to document your position.

See more Northwest Territories guides →