When an investor buys a rental property which is currently tenanted, what options does the new owner have? Are you allowed to evict the tenants and find your own tenants? 

Residential Tenancy Laws in BC require an owner of individual rental properties to occupy the unit in good faith for a minimum of six months when a current tenant is served a notice to vacate. What this means is when an investor purchases a property which is occupied they are unable to request the current tenants vacate the property with the intention of re-renting the unit immediately or performing renovations and then rent it again. The current owners must provide the two month notice to vacate, also called “For Landlord’s Use Of Property” . 

It is important to understand who can occupy the unit when a two month notice to vacate is served. If the owner wishes to occupy the property while they own it there are certain people who are considered family and are permitted to occupy the unit. They are the landlord, the Landlord’s spouse, children and or parents of the landlord or landlord’s spouse. Only these family members are considered family in tenancy laws. A brother, sister, aunt or uncle does not qualify. If the landlord is a Family Corporation, a person holding shares in the Corporation or a close family member, as described above is permitted.    

Failure to occupy the unit for the six months could result in compensation being awarded to a former tenant, and that amount could be equal to 12 months of rent.

If you are selling a rental property which is tenanted and the new owners want to occupy the property, owners are required to provide two months notice, and compensate the tenants for the equivalent of one months rent. This is often provided in the form of non payment of rent for the second of the two months. A key component of providing the two month notice requires the purchaser to provide a request in writing directing the current owner to serve the two month notice to vacate as it is their intention to occupy the property. The letter must be provided to the tenants with the notice to vacate. Failure to provide the written request from the new owners could make the notice to vacate invalid, and the tenants might have a right to continue residing in the property after it has sold. 

Need assistance managing your property? contact us for an evaluation of your needs.

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

www.cartrefproperties.com 

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