BC Rental Agreement Contracts: What You Need to Know
What You Need to Know About BC Rental Agreements
The definition of BC rental agreement is as follows: "rental agreement, in relation to a rental unit, means an agreement, whether oral or written, express or implied, and whether with or without a term for periodic rentals, under which the landlord grants, for consideration, the use and occupation of the rental unit and includes a tenancy agreement and a manufactured home park tenancy agreement;"
Legal Significance: A rental agreement is a contract between a landlord and tenant. Section 1 of the RTA defines "landlord" as "a person who grants, or intends to grant, a right of occupation of a rental unit and includes a person who (a) is acting at the direction of the landlord, or (b) has the authority to act for the landlord." The term tenant is defined in the same section as "a person who is entitled to occupy a rental unit under a rental agreement." Of note, section 2(1) of the RTA provides that this act applies to any rental agreement whether oral, written, express, or implied unless otherwise expressly stated in the Act. Section 2(2) of the RTA states that Part 6 applies to all tenancy agreements and part 7 of the RTA applies to manufactured home park tenancy agreements. Although oral and written agreements are both deemed to be a rental agreement, there are substantial advantages to having a written agreement. Written agreements set out expectations of both parties and are widely considered to be green evidence of any agreement between the parties to the document . It is common that during the course of tenancy, important aspects of the agreement are either not adhered to or ignored entirely. This often leads to questions as to whether a party is acting in accordance with the rental agreement. Having a written agreement which identifies each party’s expectations can greatly assist in ensuring the parties fulfil their obligations under the agreement. It is important to always abide by what is in the written rental agreement so you don’t end up in dispute with your landlord (or tenant) even if you know that they were not within their rights under the agreement. The reasons for this are two fold: 1) It assists you in having a strong case under either Part 6 (Tenancy agreements) or Part 7 (Manufactured Home Park Tenancy Agreements) of the RTA, and 2) Having a strong case under the RTA means that any party to the rental agreement can potentially file an application for dispute resolution (ADR) and then go to tribunal.
Landlords and tenants should both have a copy of the rental agreement which they have signed. Depending on the type of rental unit being rented, section 13 or 13.1 of the Act provides additional information which must be provided by the landlord to the tenant. For manufactured home park tenancy agreements, these additional requirements can be found in sections 68 and 69 of the Act.
Components of a BC Rental Agreement
A comprehensive BC rental agreement contract should clearly and unambiguously set forth the terms of the tenancy so that both the landlord and tenant fully understand their obligations. The following is a list of essential elements that need to be included:
Party Information: Names, addresses and contact information for the landlord and tenant(s).
Term: Specify whether the tenancy is for a fixed term or month-to-month.
Rent: Clearly state the amount of rent, due date, accepted method of payment and consequences for non-payment.
Deposit: Address the amount and handling of a security/ damage deposit, as well as the requirement for a receipt and specific timeline for return after the tenancy ends.
Occupants: Address how many people will be living in the unit.
Pets (if allowed): Address the issue of pets and specify what type, if any, are allowed and the consequences of having a pet not listed in the rental agreement.
Repairs and Maintenance: Address the responsibility of the landlord versus the tenant for minor and major repairs.
Entry by the Landlord: Clearly specify when the landlord is permitted to enter the premises.
Condition Of The Premises: Address the condition the tenant is expected to maintain the unit and the landlord’s responsibility.
Obligation to give written notice before moving out or terminating the tenancy.
Numeric scale of rent increase percentage.
Utility Responsibilities.
Dispute Resolution Procedures, and other essential items specific to the situation.
Different Types of Tenancy Agreements in British Columbia
Agreement Types
Tenancy agreements can be divided into two main categories: fixed-term and periodic. The type selected does not impact the relationship itself, but it defines how that relationship is to be managed. A fixed-term rental agreement will often specify a set duration, such as "1 year" or "6 months". A periodic rental agreement does not have a fixed end date and automatically ends only when proper notice is provided by the landlord or tenant. The tenancy relationship established is the same regardless of the agreement type. For example, many fixed-term agreements entered into today have an option to renew for an additional fixed term or to become a periodic agreement at the end of the initial term. In either case, the tenancy relationship continues for as long as the parties remain bound by the agreement. Both types of agreements are subject to all the same rules that apply to rental relationships in BC. Even if you enter into a fixed-term rental agreement, you will have the option to turn it into a periodic tenancy upon its expiration. If you don’t wish to be a tenant of the property any longer, however, you should ensure that you comply with the provisions of the RTA with respect to the relevant notice requirements.
Tenants and Landlords Legal Responsibilities
Landlords and tenants in BC have specific legal obligations when entering into a BC rental agreement contract. These obligations are primarily governed by the following legal sources:
- The Residential Tenancy Act, SBC 2002, c. 78 (RTA): regulates residential tenancies; incorporates the Residential Tenancy Regulation, BC Reg. 512/2003; establishes rights, responsibilities of landlords and tenants; outlines maintenance/repair and safety standards for rental units.
- The Tenant Protection Act, [RSBC 1996] Chapter 463 (TPA): governs rent-increase limits for residential premises, with respect to which the RTA has replaced the TPA.
- The Manufactured Home Park Tenancy Act, SBC 2002, c. 77 (MHPTA): governs manufactured home park tenancy agreements; incorporates the Manufactured Home Park Tenancy Regulation, BC Reg. 24/2004; replaces the Mobile Home Act, R.S.B.C. 1996, c. 307.
- The Act and Regulation do not apply to tenancies in strata title units, co-ops, and non-profits that rent or lease residential accommodation to seniors for at least two months’ duration and without providing support and care services.
- The British Columbia Building Code, 2006 Regulation, BC Reg. 204/2007: regulates construction and maintenance of buildings, including minimum occupancy, safety and structural standards for rental units; incorporates the Building Act, R.S.B.C. 1996, c. 9; adopted under the Community Charter, S.B.C. 2003, c. 26, at ss. 20, 264 (2).
- The Rental Standards Bylaw, 2007, No. 5935 (RSD): adopted pursuant to the Vancouver Charter, S.B.C. 1953, c. 55, ss. 102, 103, 106 and 107; and Municipal Sewers Regulation Bylaw, 1991, No. 6564, ss. 8, 10, 16, 118 and 123.
- Under the Vancouver Charter, owners of rental property who install, operate and maintain a sewage source control device or system are the principal permittee responsible for preventing sewer use regulation contraventions caused by wastewater discharge from their premises.
- Municipal, regional, and provincial governments are responsible for regulating and maintaining water, sewerage, drainage, garbage and waste collection systems.
Common Clauses in Rental Agreements to Consider
In this article, we will look at common clauses included in BC rental agreements. We will examine pet agreements, maintenance responsibilities and termination clauses, amongst others.
Rent
The first clause you will want to look at will be the amount of rent you will be required to pay. This may be broken down into a base rent, plus utilities and parking costs. For example, you might have $1,500/month, plus $300/month for utilities and $50/month for parking. This equates to a total of $1,850/month.
The rental agreement should also specify the place to which the rent is to be paid, whether that be at the landlord’s address or somewhere specified by the rental agreement.
Length of Occupancy
Next, you will want to review the length of your lease. If your rental agreement does include a specific term, you must leave when the fixed term expires unless you have a new agreement with your landlord. There are some exceptions to this rule. Where your rental agreement includes a term of fewer than four months, your landlord will become your landlord even if they have not signed a tenancy agreement with you if you have been living in the unit for at least six months. In this case, you will continue to rent the unit under the same terms of the previous agreement.
You should also be aware that if you stay past the terms of your rental agreement, your agreement will renew on a month-to-month basis .
Pet Agreements
Most rental agreements in BC contain a provision limiting or prohibiting pet ownership. In our experience, however, many landlords are open to and support responsible pet ownership. Therefore, it makes sense to have your lawyer draft a pet agreement.
Security Deposit
Because landlords want to ensure they are not stuck with damage to their property, BC law allows the landlord to require a pet security deposit. Having a lawyer draft or review the lease provisions regarding pet ownership and the security deposit amount will limit your liability for damage caused by your pet.
Maintenance and Repairs
Maintenance and repairs relate to the obligations of tenants and landlords.
Generally, the BC Residential Tenancy Act states that landlords are required to make sure rental units and residential property meet health standards and maintenance clean standards.
They must repair and maintain the following for a rental unit:
They must repair and maintain the following for residential property:
On the other hand, tenants are required to take ‘reasonable care’ of the unit and the property and must not purposely or neglectfully cause damage.
Overall, as a tenant, you must:
If renting in Canada and you’re hoping to get out of your lease early, the BC Residential Tenancy has a process to assist generally, and specifically for students, so reach out to us today!
How to Write a BC Rental Agreement
When drafting a rental agreement and a landlord wishes to have terms that are more restrictive than the terms set out in the Act, it needs to be very specific as to what is being addressed. In many cases, the Act will not allow a rental agreement to state that a resident cannot have overnight guests or cannot smoke on the premise.
A rental agreement is a legal binding agreement and therefore all terms must always be in written form. If, for example, a rental agreement has a term that states that a resident must give 28 days’ notice that they are going away or have taken their premises off the market for sale, and there is nothing in the rental agreement that states these are the requirements, then those two things must be dealt with based on the Act.
While there is no "standard form" rental agreement, the Act lays out what must be contained in a rental agreement. If these terms are not in the written agreement, a party could be at serious risk of losing their case in the event of a dispute.
A rental agreement must contain the following:
7 (1) A long tenancy rental agreement must contain the following information:
(a)the date of birth of each tenant, or the date of birth of one tenant and, if only one tenant is required by the landlord to sign the agreement, the name of that tenant;
(b)the address of the rental unit;
(c)the total rent payable for the rental unit, or the method of calculating rent and the factors for variation under each tenancy;
(d)the frequency of the rent due date;
(e)the date the tenancy begins;
(f)the length of the fixed term of the tenancy, if any;
(g)any charges to the tenant for services or facilities provided in addition to the rental unit and the amount of those charges or the method by which the charges will be calculated;
(h)if rental units at the same address are rented on terms other than those set out in paragraph (g), or are rented at different rents, a summary of the reasons for the differences in terms or rents;
(i)the amount of any security deposit required or the method of calculating it;
(j)if the landlord is a former tenant or the parent, child or spouse of a former tenant, the name of the landlord.
(2) A long tenancy rental agreement must also contain a statement setting out
(a)the address of the landlord,
(b)the current address of the landlord within (ii) British Columbia or (ii) within Canada,
(c)the telephone number or cell phone number of the landlord within (ii) British Columbia or (ii) within Canada,
(d)any other manner in which the tenant may serve a notice to end the tenancy on the landlord.
(3) A tenancy rental agreement may also contain any additional information agreed on that is required by either the tenant or the landlord.
(4) A landlord must give a copy of a proposed tenancy rental agreement to a tenant before the tenant signs the agreement.
Dispute Resolution in British Columbia Tenancy Agreements
Despite being a mandatory legal document, completed BC rental agreements often lead to disagreements between the landlord and tenant. The most common disputes are around the end date of the tenancy, rent increase, unpaid rent, rental unit conditions, or tenant upgrades. If the tenant does not have a copy of the completed rental agreement, they will be unable to challenge the landlord on these points.
Parties can attempt to rectify a departing agreement, but if necessary, the Residential Tenancy Branch (RTB) offers the Mediation and Dispute Resolution services to help resolve any issues that may arise. The RTB provides various methods to settle disputes such as the phone line, voice messaging services, and fax – all of which send a copy of the message to both parties at once, regardless of whether they are using an agent or acting on their own.
In many cases, a hearing will be required because the perception of facts changes from party to party. For example, the two parties may disagree on how much rent is owed and how it should be paid.
Hearings by the RTB have some formality and can be expected to take 1-2 hours. The Chair for the dispute resolution process is comparable to a mini-trial at court, and thus can use any number of witnesses and physical evidence . The Chairs will help settle disagreements by asking questions of all parties, referring to the evidence, and then laying down a judgment.
Regardless of whether the case is proceeding through mediation or full adjudication, the hearings will generally be held in front of a single member of the Residential Tenancy Tribunal. The tribunal is bound by law, and can only rule on issues that fall within the scope of its authority. Extraneous issues will be disregarded. Some people bypass these hearings and use the regular courts to settle disputes, but this is both time consuming and expensive (due to the high court fees). It is therefore usually more cost-effective to work through the RTB. In any case, going beyond the RTB will require either the explicit approval of the parties or the written permission of a Regional Director.
There are several ways a decision made by the Residential Tenancy Tribunal can be enforced. A Tenancy Agreement created by the RTB is recognized as legally binding; thus if a party refuses to comply with a Tribunal-ordered decision, you can ask the Supreme Court of British Columbia to enforce it.
Before going to court, however, it is a good practice to try to resolve issues through negotiation or mediation to avoid unnecessary costs.