In 2017 the BC Provincial Government made a change to the Residential tenancy regulations regarding fixed term tenancies. Section 97.2 a.1 outlines when a fixed tenancy can include a term requiring a tenant to vacate the property at the end of the tenancy. 

Before the change in 2017 a landlord could have a tenant sign a fixed term tenancy agreement which required the tenant to vacate the property at the end of the term. When rents are increasing a fixed term was used by landlords to increase rents beyond the allowable limits outlined by the government. Landlords would request tenants sign a new lease at a higher rate to continue residing at the property, or have tenants move out so landlords could rent to another tenant for a higher rate. The 2017 change limits when a fixed term clause can be used. Section 13.1 of the residential tenancy regulations identifies two requirements for a fixed term clause. One the landlord must be an individual, second the person moving into the rental unit after the tenant vacates must be a close family member as defined in section 49 of the Residential Tenancy Act. A close family member is identified as a parent, spouse or child of the owner. Or the parent, child or spouse of the spouse of the owner. 

The only reason a landlord can have a fixed term that requires the tenant to vacate the property at the end of the tenancy is for the landlord's use. This is similar to the two month notice to vacate for landlord’s use and requires landlords occupy the property for a minimum of 6 months before being able to rent the property to other tenants. Failing to meet this occupancy requirement could result in a claim by a past tenant for compensation to a maximum of 12 months rent.        

If you have a fixed tenancy agreement and are an individual owner your tenant may have a right to not vacate the rental unit at the end of the fixed term. This prevents landlords from manipulating the tenancy to increase the rent above the allowable limits provided by the provincial government. Before signing a fixed term tenancy agreement with your tenants review these sections of the Residential Tenancy Act and Regulations to ensure you are in compliance. 

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Cartref Properties specialises in managing rental units located within Strata Corporations.

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