tenant law

Tenant Law: Know Your Renter’s Rights in BC

Finding a new rental home or unit can be mentally exhausting. Not only are you in the midst of a move (an upheaval of your daily routine), but there are several start and end-of-lease problems to consider. Do you need to do last-minute repairs? Should you complete an inspection before moving into your new rental? Can the landlord raise your rent after you sign the contract? Knowing your rights can make the rental transition smooth.

In British Columbia (BC), renters laws are mainly found in the Residential Tenancy Act (RTA) and the Manufactured Home Park Tenancy Act (MHPTA). The purpose of these acts is to protect tenants from unfair treatment. They also safeguard landlords and advise on how they can best manage their properties. Together, the laws help guide a long and beneficial rental relationship.

So, whether you rent a condo in Vancouver or a house in Victoria, there are aspects of BC tenant law that every renter should know. Let’s delve into the most common questions about renting and the laws that protect your living situation.

What is a Residential Tenancy Agreement?

A Residential Tenancy Agreement is a legal contract between a tenant and a landlord. It outlines the rental terms and the responsibilities each party has. In BC, this agreement can be written or verbal (though it is best to have everything in writing to avoid misunderstandings).

The agreement should include details like:

  • The names of both the landlord and tenant
  • The address of the rental property
  • The rent amount and payment schedules
  • The start date of the tenancy
  • Any special rules (like no pets or no smoking)

The agreement should not have any clauses that conflict with the Residential Tenancy Act of BC. For example, a clause that says tenants cannot have guests over would be invalid.

Security Deposits and Pet Deposits

Landlords can request a security deposit when you sign a rental agreement in BC. All security deposits are capped at half a month’s rent. The idea is for the landlord to reserve that money for damages beyond normal wear and tear. If you have a pet, they can also request an additional pet damage deposit (also capped at half a month’s rent).

The security and pet deposits must be returned within 15 days after you move out (provided there are no damages). To ensure you get your full deposit back, conduct a thorough inspection with your landlord at both move-in and move-out. Document any pre-existing damage and take photos that can act as proof.

Maximum Rent Increases in BC

British Colombia has rent control. Landlords cannot just raise your rent whenever they want. Acceptable rent increases are regulated by the RTA, and they lay out several requirements for landlords, such as:

  • Rent can only be increased once every 12 months
  • Landlords must give tenants at least three months’ written notice before the increase
  • Maximum rent increases are set by the government each year and reflect the cost of living. For 2024, it’s 5%. That is a 1.5% increase from last year but below the annual average CPI inflation rate of 3.9% in 2023.

If your landlord tries to raise the rent more than what is allowed, you can challenge the unregulated rent increase through the Residential Tenancy Branch (RTB).

How Much Should You Spend on Rent?

The 30% rent rule suggests you spend about 30% of your gross income on rent. For example, if you earn $4,000 per month before taxes, you would allocate $1,200 for a monthly rent.

While this is a good guideline, it’s not always practical. If you live in a more affordable area, you might spend less. Conversely, in high-cost cities like Toronto and Vancouver, 30% might not cover rent. And home rental prices have risen significantly in major cities in recent years. As of June 2024, the average rent for a 3-bedroom in Vancouver, BC is $3,721 per month. That can force you to stretch the 30% rule.

The 50/30/20 budget rule presents another rent-selection and household budget strategy. Allocate 50% of your take-home pay for needs (including rent), 30% for wants, and 20% for savings and debt. That means for the same $4,000 monthly income you would reserve $2,000 for needs, $1,200 for wants, and $800 for savings.

Of course, consider all extra expenses when determining your monthly rent budget. For instance, if you have student loans and car payments, you may need to lower the amount you pay on rent. Factor in other additional costs like transportation and utilities.

Lastly, remember to prioritise savings, even if it means you adjust your rent budget. And go ahead and use your emergency funds or seek rental assistance in critical financial situations. But attempt to find a rental amount that supports a healthy future. Always explore ways to cut costs, such as bill negotiation, insurance shopping, renting with a roommate, or finding move-in deals.

Repairs and Maintenance

One common issue between landlords and tenants is repairs and maintenance. Luckily, BC tenant law explains both you and your landlord’s responsibilities.

First and foremost, landlords must keep rental units in good repair. Known health, safety, and housing standards are the set benchmarks. For example, all plumbing, heating, and electrical systems must work properly.

As a tenant, you take on the daily tasks such as cleaning. You also must report any repairs to the landlord without delay. If the landlord doesn’t make the repairs in a reasonable time, you can file a complaint with the RTB.

However, tenants cannot withhold monthly rent to force a landlord to make repairs. Instead, the RTB can help resolve the issue. Follow your rental agreement and allow BC tenant law to handle disputes.

Ending a Tenancy

A tenant or the landlord can end the tenancy. Termination of an agreement involves specific rules. For example, to end your tenancy, you must give written notice to your landlord. And you must deliver that notice with enough time before the chosen move-out date. The time of your notice depends on your tenancy type:

  • Month-to-month tenancy: Requires one full month’s notice.
  • Fixed-term tenancy: Requires notice before the end of the term, otherwise you may have to pay rent until the term ends.

Landlords can also end a tenancy, but they must provide a valid reason, such as:

  • Non-payment: If you fail to pay your rent, the landlord can give you a 10-day notice to end the tenancy.
  • Breach of the tenancy agreement: If you break the rules outlined in your rental agreement, the landlord can seek termination (e.g. you keep a pet in a no-pet property)
  • Landlord use: If the landlord or a close family member wants to live in the rental unit, they can give you two months’ notice.

If a landlord ends the tenancy for their own use, they must compensate you with one month’s rent.

Protection Against Unlawful Evictions

Being evicted is stressful. That’s why a landlord must cite a specific legal reason to evict a tenant in BC. If your landlord tries to remove you from your home and rental agreement without a valid reason, it might be an unlawful eviction.

You have the right to dispute an eviction notice with the RTB. If the RTB finds the eviction is unfair, they can order the landlord to let you stay in the rental unit.

Renovictions

In British Columbia, “renovictions” refer to the eviction of tenants under the pretext of performing major renovations on a property. This practice is quite controversial as some landlords use it to remove tenants. Many complete a renovation and then raise the monthly rent to get around rent control regulations.

Tenants must receive at least four months’ notice for such evictions. You can also challenge the legitimacy of the renoviction through the Residential Tenancy Branch (RTB). If the eviction is legitimate, tenants may have the right to return to the unit after renovations at the previous rent rate.

Dispute Resolution

Disputes between tenants and landlords happen. Luckily, the RTB offers a dispute resolution service to help resolve these issues before you need to go to court. You can use this service for problems like:

  • Security deposit disputes
  • Rent increases
  • Evictions
  • Maintenance and repair issues

To start the dispute resolution process, file an application with the RTB and pay a fee (which might be waived if you have financial hardship). The process usually includes a hearing where both sides can present their case. After the hearing, the RTB will make a legally binding decision.

Additional Resources and Support

If you need more information about the tenant law or help, there are several available resources:

  • Tenant Resource & Advisory Centre (TRAC): Provides legal information, advocacy, and support for tenants in BC.
  • Residential Tenancy Branch (RTB): Offers information, forms, and dispute resolution services for tenants and landlords.
  • BC Human Rights Tribunal: Handles discrimination complaints in housing.

Knowing renters rights as a tenant is crucial for a fair and stable rental experience. By staying informed and taking action when needed, you can protect yourself from unfair treatment and enjoy a secure living situation in British Columbia.

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Len Hiquebran, CPA, CA, LIT

After completing my articling at a local accounting firm, I spent some time working in industry as a controller of a logging company. Subsequently, I joined Chase & Associates in 2017 and began working in the insolvency field. In June 2020 I completed my studies and was granted a license by the Federal Government to be a Licensed Insolvency Trustee.