Landlords Take Notice – Recent Amendments to BC Tenancy Legislation #574
The BC residential rental market has been a very hot topic lately in many different business and social circles. Restrictions imposed on the short-term rental market have taken several homeowners by surprise, and the BC Government has again changed the rental landscape with the passing of Bill 14 – Tenancy Statutes Amendment Act, 2024, which amends the BC Residential Tenancy Act (RTA) and the BC Manufactured Home Park Tenancy Act. Bill 14 was granted royal assent and became law on May 16, 2024, and the changes will take effect in phases. This article focuses on the changes to the RTA.
Key Changes to the RTA
It is worth reading the entire law because not all changes are discussed here, but some key changes to the RTA are these (where there is a reference to a matter being "prescribed" that means prescribed by regulation; changes already in force are indicated in bold):
| 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.
Policy and Impact
This provincial government has been fairly aggressive in addressing the lack of affordable housing in many key residential centres, sky-rocketing home prices over the last many years, and insufficient long-term rental inventory. Its stated goals with the introduction of Bill 14 have been to deter bad-faith evictions, prevent unfair rent hikes, and limit other ways in which landlords may gain advantage over current or future tenants. It also seeks to provide stability in the rental market and certainty in resolving disputes. See the province's news release on the introduction of Bill 14 here.
The impact of these changes remains largely unknown given Bill 14's recent, and only partial, coming into force. There are also many gaps remaining due to the lack of enacted regulations. However, these changes do and will affect landlords/owners and purchasers of tenanted properties. In particular, notice periods and compensation amounts have changed, as will the procedure for providing notices to tenants if they are to be effective. This may impact clients' ability to comply with their obligations under contracts of purchase and sale related to tenant notice dates and any obligations to provide vacant possession. In other words, the RTA changes will trump any contractual obligations, which will put clients who have agreed to terms inconsistent with the changes in a very difficult spot. This may, in turn, directly affect the obligations of REALTORS® where an owner/landlord's compliance with the RTA is delegated to them, for example in providing required notices to tenants. There is also no detail as of yet about the internet portal being created, though since its use is mandatory, REALTORS® should watch closely for related government updates.
For all these reasons, REALTORS® should ensure they are familiar with the Bill 14 changes as they develop so they can properly advise their clients or refer them to legal advice where necessary and understand their own obligations. Landlords and potential purchasers of tenanted properties should also familiarize themselves with these changes and contact their REALTOR® for advice.
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