Investors are the most active in the market right now (investors know to buy when nobody else is buying) so we have been regularly reminding our investors that the provincial government made some changes to the residential tenancy act recently. The changes relate to requirements and rules if a landlord is planning to demolish, renovate or repair their tenanted property. Below is a summary of some of the changes.
- To end a tenancy because you intend to demolish, renovate or repair, or convert a tenanted property, you must give at least 4 months notice rather than the previously required 2 months notice. Tenants have 30 days to dispute the notice which is double the previous time allotment
- If a landlord ends a tenancy to renovate or repair a unit in a residential property with 5 or more units, the tenant has the right of first refusal to re-rent the unit at the new rental rate. If the tenant exercises the right and the landlord does not give the tenant a 45 day notice of availability or a tenancy agreement to sign, they have to give the tenant 12 months’ rent
- If a tenancy is ended in bad faith the landlord will owe the tenant 12 months’ rent. Bad faith would include if the landlord hasn’t made progress towards the stated purpose for ending the tenancy within a reasonable period after the effective date of the notice, or they have not used the unit for the stated purpose for at least 6 months beginning within a reasonable period after the effective date of the notice
- If a landlord is ending a tenancy on behalf of a purchaser, the notice must contain the purchaser’s name and address
Also to note, the Government made changes at the end of last year to fixed term tenancies. As of Dec.11, 2017, landlords are no longer allowed to have fixed term tenancies with a vacate clause. All fixed term tenancies move to a month to month tenancy, subject to the annual rent increases set by the Government (which is 4.5% for 2019).
If you are considering purchasing a rental property, it is important to know all of the details of the existing tenancy before making an offer on the property.
For expert advice on finding a good rental property, book a consult and we will devise a plan for you.