The Residential Tenancies Act allows landlords and tenants to agree on the terms of new leases, as long as they do not break the law. In the second part of our review of the recent Residential Tenancies Amendment Act, 2020, we look at a hotly debated topic; Indication of a reason for termination of a rental. “This change means that an already tight rental market will be further reduced, impacting entrepreneurs and business owners. A change to the law in February affects workers, entrepreneurs and business owners. With the legalization of recreational cannabis, homeowners will be able to include conditions in new agreements prohibiting cultivation and smoking. It is the landlord`s responsibility to ensure that these prohibitions are clear in the leases. Landlords must give four months` notice to terminate the lease for demolition, renovation, repair or conversion, and tenants have 30 days to contest the termination, landlords who violate the eviction rules set out in the law are required to pay an amount equal to three months` rent, as well as “actual damages suffered by the tenant as a result of the termination of the lease.” The best option may be to give your tenants 90 days to terminate their lease, which you can do if you put the premises up for sale within 90 days of the termination date. The upside is that you have more control, Trading Assistants don`t have to negotiate with tenants for access, and you don`t rely on tenants to make sure the property is at its best. Eventually, they lose their home. You can also use this time to work on the property to make sure you get the best price. Be warned, we have been informed that you cannot put the property up for sale and cannot notify your tenants. Failure to do so can result in exemplary damages of up to $1,800. We have developed a fact sheet that summarizes the changes.
[PDF, 631 KB] You must issue a new notice period of four months to terminate the tenancy. Why do the amendments allow landlords to terminate a temporary lease before the end date if they notice the termination of a lease for the landlord`s use? An example of a mitigating circumstance is a landlord who terminated a lease to renovate or repair a rental unit and the rental unit was accidentally destroyed by fire. If the Residential Rent Act, the Tenants Act and the Fabricated Housing Ordinance are amended, it is important for landlords and tenants to understand how these changes affect their rights and obligations. As of February 11, 2021, landlords can no longer terminate a periodic tenancy without giving reasons. Landlords are limited to when they can issue eviction notices after the first year of tenancy. Reasons include: the owner or a family member returning to the property to reside as a principal residence for at least 90 days; the immovable property has been put into circulation or sold; Or the owner has planned extensive renovations. In addition to the risk that a fixed-term tenancy will turn into a periodic tenancy, there is also the risk that a tenant will stay longer and then make use of his right to transfer the property. If there was a temporary lease, a landlord would technically have to wait until the end of that lease before closing a park. While most of the amendments to the Residential Tenancies Act, 1986, which came into force on February 11, 2021, will be dealt with by real estate professionals, case law will undoubtedly provide additional information; One of the changes to the RTA has just left the industry and vacation home owners a little perplexed.
Steve Watson, MBIE`s national director of compliance and leasing investigations, said leasing services have recognized this as a new area of rental law. Landlords can only raise rents for tenants once a year, and if they do, rent increases are capped at 7% plus the annual change in the consumer price index. Apart from the removal of the possibility of using an eviction clause, the rules for terminating a lease have not changed. For example, a tenant can terminate a tenancy by giving the landlord at least one month`s written notice. An arbitrator from the Residential Tenancies Branch may order the termination of a lease because of a breach of a lease by either party. The landlord and tenant can mutually agree to terminate a tenancy, which must be documented in writing. An amicable termination of a rental (PDF) is recommended. Landlords can also terminate a tenancy by sending the tenant one of the following notice of termination of tenancy: This was probably the most discussed aspect of recent changes to residential tenancy; annulment of the dismissal without cause. Previously, under section 51 of the RTA, the landlord could give a tenant 90 days to terminate their tenancy without cause. That all changed on February 11, 2021, when most of the changes came into effect as part of the changes. If the landlord now wishes to terminate the tenancy, the landlord must provide the tenant with a valid reason as set out in section 51.
Discourage landlords from using section 49 (Use by landlord) notices to unfairly evict tenants – for example, to rent to a new tenant at a higher rent without fulfilling the objective of terminating the lease. “In Whangamata, they either sold, moved back in, or decided with the changes in the law that they wanted their holiday home back.” Give tenants the first chance to enter into a new lease if their tenancy has been terminated due to renovations. It is important for property managers to educate landlords about the “small” risk of continuing the lease and how this might affect their plans. It is best to have the discussion and note that it took place in case something changed in the tenant`s situation and the lease exceeded the originally agreed date. ● How difficult would it be for my tenants to stay in the property during renovations?● If they can stay, can I increase the rent because I provide improved facilities?● Are renovations a valid reason to end a tenancy? Of course not. According to the Interpretation Act, amendments enter into force at the beginning of their entry into force. A two-month notice period can no longer be used to terminate a demolition, renovation or conversion lease as of May 17, 2018. She agreed that some changes in the law were positive when no one had to live in moldy homes, but said none of the rentals on the company`s books were unhealthy because properties were managed with quarterly inspection reports sent to landlords. While the new changes to the RTA present a risk, the good news is that most people who sign a fixed-term contract in these situations do so for a reason, as their job is also for a certain period of time and they don`t want to stay longer and rent the property. The selection of tenants by property managers has always been critical in any rental and now, perhaps a little more in holiday homes, given this peculiarity of the legislation.
A Private Members` Act has come into force, which extends the circumstances in which a fixed-term tenancy can be terminated prematurely to circumstances in which a tenant or occupant of a rental unit has been a victim of domestic violence.