Do I know the Tenancy Laws?

Often I find myself communicating with individual landlords who are renting their own property out who indicate they are familiar with the tenancy laws. It’s not long into the discussion when the conversation turns to a specific tenancy situation and as the landlord explains how they manage their property when they identify their lack of knowledge of the tenancy laws. One of the most common misunderstood portions of the tenancy laws are fixed term tenancies. 

Recently I was speaking with a landlord who indicated they offer their properties on a three month fixed term agreement, then if they like the person after three months they offer them another three months or longer. When I asked how they managed this process they looked confused? I explained that BC tenancy laws require landlords to indicate at the start of the tenancy if the rental is a fixed term and for what length. It also requires the landlord to indicate they are moving in at the end of the fixed term if they want the tenant to move out.  

If the landlord doesn’t indicate they are moving in then the fixed term automatically becomes a month to month tenancy at the end of the fixed term. When the landlord does request the tenant to vacate the landlord or a close family member as defined in the Residential Tenancy Act must move in for a minimum of six months.

Many Landlords are looking for ways to vacate tenants and personal use is a common way they look at moving the tenants out. Misunderstanding this fundamental law can lead to many difficulties. When a landlord evicts a tenant for personal use and doesn’t move into the property for the six months the tenants have the right to file a claim for being evicted in bad faith and the maximum penalty for this is the equivalent of 12 months rent. This fixed term law prohibits apartment buildings from evicting a tenant and re-renting their unit at a higher rental rate above the allowable annual rent increase limit. The Residential Tenancy Act was changed in 2017 to prevent landlords from taking advantage of tenants through this process. Prior to 2017 many landlords would use fixed term tenancies to vacate their tenants from a property and bring in a different tenant who was prepared to pay a higher rent. The law was changed due to the abuse by landlords who were creating a negative tenancy enviroment in the rental market. Landlords would like to see this changed though I am sure it won’t be changed back, requiring landlords to educate themself of the laws. 

It is important for landlords to understand the basic laws that govern tenancies in BC. When there is a dispute between a landlord and tenants, the landlord is the party who is expected to have more knowledge than the tenant.     

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