Landlords Take Notice – Recent Amendments to BC Tenancy Legislation

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. Changed proposed

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.  

Taken directly from BCREA Bulletin #574- Jul 03, 2024 - https://www.bcrea.bc.ca/legally-speaking/landlords-take-notice-recent-amendments-to-bc-tenancy-legislation-574/