Whether you rent out the basement suite in your home, act as a Property Manager for hundreds of rental units, own or manage a manufactured home community - or anything in between - with over 25 years' experience serving residential landlords and BC's housing market, A. G. Kemp & Associates is here to help you succeed as a landlord.
On April 2nd, the BC government introduced Bill 14, amendments to the Residential Tenancy Act that, when passed, will:
There are several other changes, most of which further restrict the ability of ethical landlords to provide and maintain housing for over 700,000 British Columbians. We can’t predict any of the details, as reference to something yet to be written in the Regulation to the Act appears 40 times in 14 pages, an obvious ploy by the government to avoid the legislative process providing for debate in the Legislature before an Act is enacted or changed.
There certainly is a difference and there are legal rules. A sublet occurs when a renter is temporarily absent and someone else is living in the unit, leaving when the renter returns. An assignment is the permanent transfer of a fixed term tenancy agreement (lease) to a new renter(s). Nothing changes in the agreement, including the rent, except for the names of the renters. A new roommate is neither; that person is an additional occupant and permission for the person to move in might be required in the tenancy agreement.
That was easy; what about the rules? A request to sublet or assign must be considered only during a fixed term tenancy agreement with six or more months remaining in the term. A request during a month to month agreement or a fixed term with less than six months remaining can be denied without any reason given.
If the fixed term agreement has six or more months remaining, “the landlord must not unreasonably withhold the consent,” i.e., the landlord must have a true and viable reason to deny the request. While an arbitrator would make the ultimate decision on whether a denial was unreasonable, tenant relations should be the first consideration; if the renter’s request is reasonable, probably consent should be given.
The interest payable on security and pet damage deposits for 2024 is 2.7% annually or a monthly rate of 0.225% This means the 2024 interest on a tenancy ending April 30 would be 0.9%. Deposit interest is also compounded, so the calculations could be daunting. The Residential Tenancy Branch website has a super calculation program. On the website (Google Residential Tenancy Branch), click on tenancy forms, resources and calculators, then tenancy calculators, then deposit calculators. Enter the date the tenancy began, the end date, and the amount of the deposit(s). The interest payable will immediately appear.
Include a clause in your tenancy agreement requiring the tenant to obtain and maintain tenant liability and property damage insurance and provide proof on request. This has been ruled a material term of a tenancy agreement by the BC Supreme Court. When you issue a rent increase notice, include a note requiriing proof of current insurance. Not only does this protect you, but also if you can show your insurance broker that most or all tenants have insurance, you may get a premium reduction.