The notice period required to end a tenancy has been extended to four months.
Alright, let’s dive into the latest buzz around the BC residential rental market! Recently, this topic has sparked plenty of discussion across various business and social circles. Homeowners have been caught off guard by the new restrictions on short-term rentals, and now, the BC Government is shaking things up again with the passing of Bill 14 – Tenancy Statutes Amendment Act, 2024. This bill makes significant changes to the BC Residential Tenancy Act (RTA) and the BC Manufactured Home Park Tenancy Act. After receiving royal assent on May 16, 2024, these changes will be rolled out in phases.
Let’s break down some of the key updates to the RTA. While this summary doesn’t cover every change (it’s worth diving into the full text of the law for all the details), here are some of the most significant updates. If you see a reference to something being “prescribed,” that means it’s set by regulation. And remember, any changes that are already in effect are highlighted in bold for your convenience.
| Section No. | Change Imposed |
| 9 | Establishes an “authorized internet site” maintained by the residential tenancy director and used for the purposes of providing notice and other purposes under the RTA. |
| 12 | Adds Section 22.1 to the RTA, which now prohibits a landlord from increasing the rent when the number of occupants increases because a minor, or a person who was a minor when the tenancy agreement was entered into, moves in. Section 14 limits the amount of any such increase to the prescribed amount. |
| 15 | A landlord may not give notice to end the tenancy unless the relevant requirements or circumstances justifying the end of the tenancy exist or the landlord has a reasonable belief that those requirements/circumstances existed at the time the notice is given. |
| 17 | The notice period to end a tenancy for landlord use, for any reason, is increased to four months, unless another notice period is prescribed, which may not be less than two months. |
| 18 | A landlord can only end a tenancy to convert a residential unit to non-residential use if that non-residential use is prescribed. |
| 19 | Unless otherwise prescribed, a landlord may not end a tenancy for their own or close family use, or a purchaser or their close family’s use where the building contains five or more rental units, and is either not stratified or is stratified but all rental units are owned by the same owner. |
| 20 | The tenant dispute period for a notice to end a tenancy under Section 49 of the RTA is extended from 15 days to 30 days for all reasons unless a different period is prescribed, which will not be less than 15 days. |
| 22 | The compensation payable to a tenant if a landlord ends the tenancy under Section 49 is changed from the equivalent of one month’s rent to the greater of the prescribed amount or one month’s rent. The tenant may also withhold that prescribed amount from the rent otherwise payable for the remaining months at the end of the tenancy. If the withheld amount is less than the prescribed compensation, the landlord must cover the difference. Additionally, if the conditions prompting the termination notice do not occur as specified, the compensation due to the tenant has been revised from 12 times the monthly rent to the greater of the prescribed amount or 12 times the monthly rent. |
| 23 | To avoid the increased compensation payable under Section 51(2), the stated use that justified the end of the tenancy for any reason other than demolishment is increased to 12 months unless another period is prescribed, which will be no shorter than six months. A similar amendment is made to the amount payable if the circumstances justifying a tenant having to vacate the unit at the end of a fixed-term tenancy do not come to pass. |
| 25 | Section 25 imposes a similar tenant right to withhold rent where compensation under Section 51.4 is payable and directs the landlord to pay any additional amounts not withheld. The amount payable to the tenant if the conditions prompting the termination notice do not occur as expected has been updated from 12 times the monthly rent to whichever is higher: a prescribed amount or 12 times the monthly rent. |
| 28 | Section 28 creates a mandatory system for providing notices to end tenancy pursuant to the Internet portal established under Section 9. Landlords must pay a fee to use this required system and may not change the content of the notice forms unless authorized by the RTA director or by regulation. |
| 29 | Section 29 requires RTA director authorization before notices are given to end tenancies under certain prescribed sections of the RTA, which are yet to be determined. If authorization is required, landlords must use a standard form and pay a fee. It also outlines some criteria the director must consider on such an authorization application. |
| 31 | Section 31 restricts the application of dispute resolution proceedings under the RTA to claims under a certain value ($35,000 or $65,000, depending on the claim) unless the applicant waives the right to recover any amount over those limits. |
| 34 | The administrative monetary penalty that may be imposed under Section 87.3(1) has changed from a maximum of $5,000 to a prescribed amount. |
| 35 | Failure to follow the rules set out in Section 22.1 (restriction on varying rent based on the number of occupants) or 44.1 (landlord prohibition respecting ending tenancies) are now included as offences under the RTA and are currently subject to a $5,000 fine. |
| 36 | Section 36 adds a few other RTA contraventions (of Sections 22.2, 53.1, or 53.2) as offences and changes the former $5,000 fine to a prescribed amount. |
| 39, 41-44 | Transitional provisions relating to changes to occupant-based rent changes, the effect of certain landlord notices based on the date they were issued or received, and the impact on ongoing dispute resolution procedures. In particular, if a tenant notice was given under s. 49(2) [landlord’s use of property] on or before April 2, 2024, then the old tenant compensation regime under s. 51 of the RTA applies. If the notice was given after April 2, 2024, then the amended compensation regime (outlined in section 23 above) applies. |
The non-bolded sections will come into force by regulation. No regulation release date has been communicated, but the prevailing view is that at least some regulations are expected in the summer of 2024. All bolded sections came into force by latest May 16, 2024.
Let’s unpack how Bill 14 is shaking things up in the BC residential rental market. The provincial government has taken a bold stance on tackling the affordable housing crisis, skyrocketing home prices, and the shortage of long-term rental options. With Bill 14, the aim is to curb bad-faith evictions, prevent unjust rent increases, and limit any unfair advantages landlords might have over tenants. It’s all about bringing stability to the rental market and ensuring a fair resolution of disputes. For a deeper dive, check out the province’s news release on Bill 14 here.
The full impact of these changes is still unfolding, given that Bill 14 has only partially come into effect and some regulations are yet to be finalized. However, it’s clear that landlords, property owners, and buyers of tenanted properties will feel the difference. Key changes include adjustments to notice periods, compensation amounts, and procedures for delivering notices to tenants. These updates could affect how clients meet their obligations in purchase and sale contracts related to tenant notices and vacant possession. Essentially, the new RTA rules will override any conflicting contractual terms, placing clients who’ve agreed to inconsistent terms in a tricky situation. This also means REALTORS® could face challenges if they’re handling landlord compliance with the RTA, such as issuing required tenant notices.
There’s still some uncertainty around the new internet portal, which is set to be mandatory, so REALTORS® should keep an eye out for updates from the government. It’s crucial for REALTORS® to stay informed about these changes to offer accurate advice and, if needed, guide their clients toward legal counsel. Landlords and prospective buyers of tenanted properties should also get familiar with these updates and consult their REALTORS® for advice.
