Changes to lease rent
The Government of the Northwest Territories increased the minimum lease rents charged on land that is administered and managed by the Department of Lands.
Since April 1st, 2018, if you pay less than $840 per year in lease rent, you will pay the new minimum of $840 at your next rent review or lease renewal date. This change will not affect you if you are already paying over $840.
Changes to the lease rent on Commissioner’s Land
If you hold a standard residential lease on Commissioner’s land, your lease rate will be reduced from 10% of the assessed value of the parcel of land to a new rate of 5%. This change will only take effect upon your next rent review date, or lease renewal.
As lease holders, you undergo a rent review every five years under the terms of your lease agreement. You will be notified a minimum of 90 days prior to your next rent review date advising you of any change to your annual lease rate.
How does the Department of Lands apply assessed value to determine the lease rent?
The annual lease rate on Commissioner’s Land is determined by multiplying the assessed value of the land by the applicable lease rate. The lease rate for residential leasing is now 5% and the lease rate for recreational and commercial/industrial is 10%.
Why did the government change lease rents?
The Department increased lease rents to $840 because:
- land lease rent minimums have not changed in almost two decades; and
- setting a standard lease rent minimum for Territorial and Commissioner’s Land is an important first step in aligning the administration of the two different land systems.
Changes made to the fee schedules in the Northwest Territories Lands Regulations, Northwest Territories Land Use Regulations, and Quarry Regulations that are found under the Northwest Territories Lands Act, as well as the Commissioner’s Land Regulations under the Commissioner’s Land Act.