An Overview of the BC Tenancy Agreement

What is a BC Tenancy Agreement?

A tenancy agreement, also referred to as a rental contract or lease, is a legally binding contract that outlines the relationship between a landlord and a tenant in British Columbia. Within the province, the Residential Tenancy Agreement Act (the "Act") has standardized the commercial tenancy agreement for landlords and tenants throughout the province, creating more transparent business practices to avoid – or at least minimize – disputes. The Act is mandatory and must be followed.
The purpose of a tenancy agreement is to provide both the landlord and tenant with clearly defined roles and responsibilities. For example , if a dispute were to arise, the Act would establish legal protections for both the landlord and tenant. The written document provides protection by establishing clear terms in order to protect both parties in a dispute.
Tenancy agreements may be verbal or written. However, under the Act, tenancy agreements for a fixed-term longer than 21 days must be in writing — if it is not, the tenancy agreement is deemed to be monthly or week-to-week.

What a BC Tenancy Agreement should Include

In the vast majority of cases, a tenancy agreement that has been prepared by any British Columbia landlord will require the following essential components. First (and considered to be the most important), the parties. It is not uncommon for individuals to forget or omit to include themselves as parties to an agreement, and as a result find themselves named on a separate agreement and subject to an additional deposit. Second, the terms of rent. The Tenancy Act of British Columbia requires all agreements to have the applicable terms of rent, including the amount and the frequency. Third, the duration of the lease. British Columbia landlords are classified as either fixed-term tenancies or periodic tenancies. Both types are required by the Act to have the term or terms of the lease specified. Where there is no time limit specified in the tenancy agreement, it shall be deemed to be a periodic tenancy.

Tenant Rights and Responsibilities

Occupying the premises is the primary responsibility of the tenant, but the obligation of a tenant to pay and perform maintenance on the premises is also a fundamental principle of any BC tenancy agreement. The tenant is required under the tenancy agreement to pay rent on the days it is due under the tenancy agreement, without deduction or set-off, and the payment of rent is a prerequisite to the tenant’s continuing occupancy. If the tenant fails to pay rent, the landlord may issue a 10 day Notice to End Tenancy for unpaid rent or a three day Notice to End Tenancy for non-payment of rent. Given the reality of enforced rent increases pursuant to government regulation over rent increases, tenants should take care to have funds available each month to pay rent as more often than not, rent is paid late because of tenants’ inability to pay regulated rent increases.
The courts have emphasized the necessity of paying rent every month, even in situations where there are other problems in the agreement. The tenant has a duty to mitigate damage where it ends the lease, the tenant must give notice to the landlord of any problems with the premises within a reasonable time, as well as take such care of the premises as is necessary to prevent deterioration. If the tenant rents a furnished unit, the tenant also undertakes to return such furnishings in the condition in which they were entered into the tenancy agreement, except for reasonable wear and tear. The tenant’s right of occupancy is always subject to the landlord’s right to enter premises to repair, inspect and maintain premises where needed.
Any repair to the dwelling unit or common areas of the premises must be completed within a reasonable time. The landlord is responsible for minor repairs such as fixture replacement. A tenant cannot refuse to pay rent because of the absence of a repair. If the tenant gives the correct notice to repair the deficiency with the landlord, the tenant can deduct the cost of the repair from the rent must notify the landlord in writing of the repairs that are going to be done, how much they will cost and when they are going to be made. If the landlord does not do the repairs within a reasonable time, the tenant can do the repairs themself.
There are provisions in the RTA which address both the security deposit which a tenant pays at the beginning of the lease, as well as the interest which will accrue to the benefit of the tenant. Tenants should ensure that they receive their full security deposit back at the end of a tenancy, or they are entitled to an account of how the landlord spent such money. The tenant should ensure that the landlord attaches receipts for such expenditures. The tenant is responsible for damages caused by the tenant or people living in the suite. If the tenant has an unauthorized occupant in the premises, the tenant may be liable to the landlord for a fine of up to $10,000. The tenant is also required to compensate the landlord where an unauthorized occupant of a tenancy agreement has not left the premises by the time stipulated in the Notice.
Tenants enjoy all human rights under the Rights of Persons Freedom and Protection from Cruel and Inhumane Treatment Act of British Columbia (the "Human Rights Act"). Tenants have a right to privacy of their possessions in their suites and can only be required to allow other tenants access to such possessions by the terms of the tenancy agreement, or where such person is authorized to act on behalf of the landlord.

BC Landlord Obligations

The British Columbia Tenancy Agreement provides explicit guidelines and requirements for landlords and tenants. For example, the Tenant Protection Act requires landlords to:
•maintain the unit in a state of repair suitable for occupation by a reasonable tenant,
•not enter any area of the residential property without a tenancy agreement unless they have the consent of the tenant or another lawful authority,
•provide a tenant with reasonable notice of a landlord’s entry to the unit,
•maintain and control heating and cooling systems,
•provide reasonable access to an electrical outlet and other utility facilities that tenants need,
•provide and maintain fixtures, equipment and facilities for supply of heat, hot and cold water, fuel, electricity, gas, oil and other utilities, facilities and service to the residential property,
•supply and maintain sanitary, safety, health and other similar facilities and services,
•provide a sanitary sewer system and provide and maintain fixtures, equipment and facilities necessary for receiving and discharging water and waste from the residential property,
•maintain and provide similar facilities and services prescribed by regulation or agreed upon by the landlords and tenants,
•ensure that water is provided to meet the needs of a tenant for the use of the residential property,
•provide and maintain fire prevention and detection facilities,
•maintain passable access to entrances and exits of the residential property and to each unit or
•subject to the terms of the tenancy agreement, provide reasonable security for the possession of the residential property in the possession of the tenant.
Tenant Referral Service .
The British Columbia Landlord and Tenant Advisory October 1, 2018 housing professionals help solve problems in rental housing.

Common Tenancy Agreement Issues

As with any legally binding contract, disputes can arise between landlords and tenants regarding the terms of a British Columbia tenancy agreement. The Residential Tenancy Branch is involved in resolving a variety of tenancy disputes, and common disputes include the following:

– Damages:

The relationship between landlord and tenant is essentially contractual, and Canadian common law on breach of contract provides that the victim is entitled to financial damages to the extent to which their financial position is injured due to the breach of contract. However, when dealing with situations where a landlord has failed to provide services or goods that were reasonably expected (as with a landlord’s duty to provide water to the victims), it is necessary to review alternative remedies using statutes such as the British Columbia Residential Tenancy Act.

– Security Deposits:

In order to receive a full refund of the security deposit, tenants must provide a forwarding address. If tenants are found to have lost the forwarding address of the security deposit , the landlord must bear the consequences.

– Rental Increase:

Although rental increases are permitted at any time as long as the notice to the tenant is in accordance with s. 42 of the Residential Tenancy Act, if more than one rental increase notice is sent, including increase notices when a tenant has a fixed term tenancy agreement, this can be seen as a breach of the agreement under s. 52 and 62 of the Residential Tenancy Act.

– Health Hazards:

With regards to the Tenant Housing Act, the question of whether there is a health hazard may be interpreted differently with reference to the context of the situation. A tenant’s safety or health may be affected by the landlord’s actions, by the structure itself, or by products which are not inherently dangerous but can present a health risk due to the circumstances. This can be the case when mold has formed in the dwelling, or when the stairs or railing to an apartment are chipped or damaged.

Ending a Tenancy Agreement

A tenancy agreement in British Columbia can only be ended by following the rules set out in a section of the Residential Tenancy Act (RTA). The RTA sets out that the tenancy ends on its own by the time mentioned in the tenancy agreement or otherwise at the end of a month. Ending a tenancy agreement before the listed end date requires notice from the landlord or the tenant as set out below.
If you are a tenant paying rent, you can end the tenancy agreement by giving 30 days or more notice to your landlord if your tenancy agreement is a month-to-month agreement. This protects you from unlawful or unreasonable eviction by your landlord.
Landlords and tenants can also agree to end a tenancy at any point but both parties must first sign and date a Form 7 – End of Tenancy Agreement. If you have such an agreement, you are protected by the RTA and your landlord cannot start a new tenancy agreement with you after your tenancy ends unless you have signed an additional Form 7 that sufficiently informs you of your rights.
If you are a tenant in a fixed term tenancy (meaning the term will end on a day and month mentioned in the tenancy agreement), you must give 30 days or more notice to your landlord or you must move out on your last day of the term. If you do not, your tenancy continues and becomes a month-to-month agreement.
There are a few specific grounds that make unlawful and/or unreasonable eviction of tenants illegal. The most common grounds for eviction are: (a) if the tenant fails to pay rent (b) if the tenant contracts pests and will not remove them or allow the landlord to remove them, (c) if the tenant causes any damage (d) if the tenant creates a disturbance (e) if the tenant wilfully or negligently damages the rental unit or common areas, or (f) for landlord’s use, repairs and renovations, in which case a landlord must provide a tenant with two months’ notice.
If your landlord has served you with a Form 12 – Notice to End Tenancy for Landlord’s Use of Property or a Form 3 – Notice to End Tenancy for Material Breach, you have an option to dispute your landlord’s reasons and stay in the rental unit for a hearing before a Residential Tenancy Branch arbitrator.
If your landlord has served you with a Form 2 – Notice to End Tenancy Early for Landlord’s Use of Property, you are permitted to enter into a new tenancy agreement with your landlord prior to the date given in the notice. If you fail to do so, you have only ten days to dispute the notice with the Residential Tenancy Branch or risk losing the option to stay in the rental unit.

How to Get a Sample Tenancy Agreement

Sample tenancy agreements may be obtained from the landlord, a tenant or the following government websites:
Residential Tenancy Branch
Available at: www.rto.gov.bc.ca
Residential Tenancy Policy and Procedures
Available at: www.rto.gov.bc.ca
Landlords and tenants may also obtain a sample tenancy agreement from a local real estate lawyer . A lawyer can assist in making sure your rental agreement is personalized to the needs of the landlord and tenant. Although a sample written agreement can be found online, it is important to ensure that the legal wording is appropriate and will not leave any provisions unable to be enforced.
There is no requirement to register a tenancy agreement or pay a fee to register a tenancy agreement.