At Phillips & Munro Real Estate, our goal is to ensure that buyers and sellers are aware of the new rules regarding tenant-occupied properties. The Provincial Government of British Columbia has announced some significant changes to the Residential Tenancy Act, effective on Thursday, July 18, 2024. These changes aim to prevent landlords from unfairly evicting tenants in bad faith.

As realtors, we’re always staying up to date on these new regulations to better assist clients involved in buying or selling tenant-occupied properties. To help you better understand the new BC Tenancy Rules, we’ve listed some key changes and their implications for landlords:

Key Changes Effective July 18, 2024:

Mandatory Use of New Web Portal:

Landlord Use Requirement: Landlords must use a newly introduced web portal to generate Notices to End Tenancy for personal or caretaker use.
Basic BCID Requirement: Access to the portal requires landlords to have a Basic BCID.
Occupant Details: Landlords must provide details about the new occupants moving into the property. This information will be shared with the current tenant.
Information and Compensation: The portal will inform landlords about the conditions for ending a tenancy, the penalties for bad faith evictions, and the compensation required for tenants.

Extended Notice Period:

Four-Month Notice: The notice period is now extended from two months to four months. This is generally done to help existing tenants find a suitable rental to replace their current living situation.
Dispute Period: Tenants now have 30 days to dispute Notices to End Tenancy, up from the previous 15 days.

Occupancy Requirements:

Minimum Occupancy Duration: The new occupant must live in the property for at least 12 months.
Penalties for Bad Faith: Landlords who end a tenancy in bad faith may be ordered to pay the displaced tenant 12 months’ rent.

Additional Changes and Considerations:

Compensation and Compliance

Right of First Refusal: If a tenancy was ended for renovation or repair, tenants have a right of first refusal to enter into a new tenancy agreement at a rent determined by the landlord. This applies to rental units in properties with five or more units.
Compensation for Non-Compliance: If landlords do not follow through with the stated purpose of ending a tenancy within a reasonable timeframe or fail to use the rental unit for that purpose for at least six months, they must compensate the tenant 12 months’ rent (BC Gov News).
Purchaser Details: When ending a tenancy on behalf of a purchaser, landlords must include the purchaser’s name and address in the notice.

More Considerations for Selling Your Unit if It’s Occupied by Tenants:

When we assist clients in buying or selling tenant-occupied properties, we always make sure buyers are aware of the tenancy rules and regulations prior to a sale. There are several other factors to consider that come into effect with these new changes:

Vacant Possession: Any notice to end a tenancy for the buyer’s personal use given to a tenant on or after July 18, 2024, must adhere to the new four-month notice period.
Impact on Offers: When rent is paid on the first of each month, a Four-Month Notice provided on or before July 31, 2024, would require the tenant to vacate by November 30, 2024.
Non-Compliance by Tenants: In cases where tenants do not vacate the property, sellers and buyers should seek legal advice to understand their rights and responsibilities.

At Phillips Munro Realty, we prioritize ensuring our clients fully understand the new tenancy rules and how they impact the buying or selling of tenant-occupied properties. We will always support our clients in navigating these changes, providing clear guidance and support every step of the way.

If you have any questions about the new tenancy rules, don’t hesitate to give us a call. We are here to help and ensure your real estate transactions are smooth and compliant with the latest BC regulations. For more updates or info on the BC Tenancy Act, visit the BC Tenancy Branch website.