If you’re a landlord looking to sell your rental property, it’s crucial to stay updated with recent legislative changes. These changes, designed to protect tenants and ensure fair practices, may impact how you manage your rental property sale. Here’s a breakdown of the key amendments to the Residential Tenancy Act (RTA) and what they mean for you.
Key Legislative Changes
- Authorized Internet Site (Section 9):
- A new “authorized internet site” will be maintained by the residential tenancy director for notices and other purposes under the RTA.
- Rent Increase Restrictions (Section 12):
- Landlords cannot increase rent if a minor or a person who was a minor when the tenancy agreement started moves in. Any allowed increase is limited to a prescribed amount.
- Restrictions on Ending Tenancies (Section 15):
- Landlords must have legitimate reasons or meet specific requirements to end a tenancy. They must also reasonably believe these conditions exist when giving notice.
- Extended Notice Periods (Section 17):
- The notice period for ending a tenancy for landlord use is extended to four months, unless a shorter period is prescribed (not less than two months).
- Non-Residential Conversion (Section 18):
- Tenancies can only be ended to convert units to non-residential use if the new use is prescribed.
- Family Use Restrictions (Section 19):
- In buildings with five or more rental units, landlords cannot end tenancies for their own or their close family’s use unless all units are owned by the same owner or the building is not stratified.
- Extended Dispute Period (Section 20):
- The period for tenants to dispute a notice to end tenancy is extended from 15 to 30 days, unless a different period is prescribed.
- Tenant Compensation (Section 22):
- If a landlord ends a tenancy, the tenant is entitled to compensation. This is now the greater of a prescribed amount or one month’s rent. If termination conditions are not met, compensation increases to the greater of a prescribed amount or 12 times the monthly rent.
- Use Justification Period (Section 23):
- To avoid increased compensation, the use justifying tenancy termination must last 12 months unless a different period is prescribed (no less than six months).
- Mandatory Notice System (Section 28):
- Notices to end tenancy must be provided through a new mandatory online portal, with associated fees. Landlords cannot alter notice forms without authorization.
- Authorization for Notices (Section 29):
- Certain notices require prior authorization from the RTA director, who will consider specific criteria and charge a fee for the process.
- Dispute Resolution Limits (Section 31):
- Dispute claims are capped at $35,000 or $65,000, depending on the claim, unless the applicant waives the right to recover amounts over these limits.
- Increased Penalties (Sections 34, 35, 36):
- Penalties for non-compliance with sections like rent increase restrictions and tenancy terminations have increased from $5,000 to a prescribed amount.
- Transitional Provisions (Sections 39, 41-44):
- Provisions address how new rules apply to ongoing situations, especially concerning compensation for tenancy terminations before and after April 2, 2024.
What This Means for Landlords
These changes emphasize the importance of compliance with the RTA. Landlords need to ensure they follow the new rules to avoid penalties and disputes. Using the authorized internet site for notices and understanding the extended notice and dispute periods are critical steps in this process.
If you’re considering selling your rental property, it’s advisable to consult with a legal expert or property manager to navigate these changes effectively and ensure a smooth transition for both you and your tenants. Keeping informed and compliant will help maintain good tenant relationships and protect your investment.
It is so important to us that you feel empowered and educated throughout the buying and selling process – if you want to achieve your real estate goals or are thinking about listing your home soon, give us a call, text, or email with any questions you have! We can answer all of your questions, and give you specific tips related to specific neighbourhoods, schools and more. We’re here to help.