Provincial government closes loophole in Residential Tenancy Act

A number of changes were announced today to B.C.’s Residential Tenancy Act that will help protect tenants from rent hikes.

Robinson says the new legislation will mean landlords can no longer use the loophole to bypass annual rent control, meaning renters will now be protected against massive rent hikes at the end of a lease.

"We are protecting the rights of renters who, for too long, have been left open to unfair and unjustified rent increases," said Robinson. "By closing this loophole, renters will know they'll be able to stay in their homes without the threat of skyrocketing rents."

If passed, the amendments will restrict a landlord's ability to use a vacate clause in fixed-term tenancy agreements to certain circumstances only and will limit rent increases between fixed-term tenancy agreements with the same tenant to the maximum annual allowable amount, which is currently 2% plus inflation.

The new rules will apply to both new and existing tenancy agreements.

"Our top priority is eliminating fixed-term tenancies with vacate clauses," said Andrew Sakamoto, executive director, Tenant Resource and Advisory Centre.

"This type of agreement is increasingly being used by landlords wanting to circumvent rent controls and evict tenants for reasons outside of the Residential Tenancy Act - practices that do not align with the spirit and intent of the legislation.”

The legislative amendments will also streamline the dispute resolution process for the return of security deposits.

If a landlord doesn't return a security deposit, a tenant will be able to apply for a monetary order through an expedited process. This will ensure that tenants get their deposits back more quickly - three weeks instead of waiting up to six months.