Hey folks, let’s talk about something that’s been making waves in the British Columbia real estate market: the recent changes to landlord tenancy notices. If you’re a landlord, a new buyer, or just someone interested in the real estate scene, this is crucial information you need to grasp. The government has changed the notice requirement from two months to three for purchasers planning to occupy a tenanted property. Additionally, for landlords who want to take possession of a property for their personal use, this has increased from two to four months. So, what does that mean for you? Let’s break it down.
The Three-Month Notice Period to Give Notice
First off, this new three-month notice period is a big deal. It means that if you’re a new buyer looking to move into a place with tenants, you must give them three months to vacate. This notice must be served properly, with sufficient time to move out and adequate time for the tenant to dispute the eviction if they feel it is wrongful. Remember that it's essential to serve a notice to end the tenancy in writing; this way, the tenant can't dispute that the notice was given on time. The process guidance can be found here. It’s also crucial to understand how that period is calculated.
The countdown starts the day the tenant receives your notice, not when you send it. So, if you get a firm offer in place and the seller serves notice on the 15th of the month, the three months are counted from that date. However, the tenants are still entitled to a full three months of notice, which may impact and extend the time needed.
The Four-Month Notice Period to Give Notice
Previously, landlords were required to give tenants two months’ notice before taking possession of a property for their personal use. Now, that requirement has been extended to four months' notice. If you want to move into a property currently occupied by tenants, you must provide a written notice at least four months in advance. As before, the notice period countdown doesn't start until the tenant receives your notice. Again, the tenants are entitled to a full four months of notice, which may impact and extend the time needed.
In both cases, keep in mind that full notice isn't always counted straight from the day you give notice, but instead, it's usually impacted by the tenant's rental cycle as well.
Calculating How Much Time You Need to Give Notice
If you're a landlord in British Columbia planning to end a tenancy, it’s crucial to understand the timing and delivery of your Notice to End Tenancy. Specifically, you must adhere to strict guidelines, especially if you're generating your notice on or near the last day of the rental cycle and plan to serve it to the tenant in person before the next rental cycle begins.
Key Requirements
Timing of Notice Generation: The Notice to End Tenancy must be generated before 9 p.m. on the last day of the current rental cycle. For instance, if rent is due on the first of the month, and you're generating the notice on July 31, 2024, this is the final day of that cycle.
In-Person Delivery: If you intend to serve the notice to the tenant personally, you must do so before the new rental cycle begins. So, in this case, if the landlord generates the notice on July 31, 2024, and doesn't want to experience any notice delays due to the rental cycle, then they should aim to serve this notice on the same day to ensure the tenant receives it before the new rental cycle begins on August 1.
Possession Date: If you are a buyer who plans to take possession of the property on December 1, 2024, you'll need to give a full four months' notice. This will include August, September, October, and November. That means that in this situation, all notice requirements must be met on or before July 31st to meet the December 1st possession timeline.
So, what does that mean in practical terms? Well, let's look at a couple of examples:
Example #1 - Landlord Occupancy 4-month notice:
Let's say you are a landlord looking to move into your tenanted home by December 1st. To do this, you must give at least four full months of notice, which means August, September, October, and November. Therefore, to give your tenant proper notice, you must deliver written notice to your tenant before the end of July. More specifically, you must generate your notice no later than 9 p.m. on July 31st, which must be served to your tenant on July 31st. You can't prorate those dates since your tenant must receive four full months of notice based on their rental cycle. So, if you decide to send the notice on July 1st (just after they've paid rent), even if you give them notice that day, the four-month notice period still doesn't begin until August 1st. Therefore, practically speaking, the time you need to wait could easily become five months.
Example #2 - Buyer Occupancy 3-month notice:
Now, let's say you are a buyer, and if you still want to move in on December 1st, you must give the tenant a full three months' notice. That means all of September, October, and November. As before, if rent is due on the 1st of the month, you still need to generate your notice no later than 9 p.m. on August 31st. It then needs to be served to your tenant on the same day to avoid delays. However, suppose you write an offer that instructs the seller to give notice to their tenants, and the seller delivers this notice to their tenants on September 1st after you have a firm deal in place. In that case, the time between offer and possession is effectively four months (September, October, November, and December). Unfortunately, a late notice delivery, in this case, means that your preferred possession date gets delayed until January to ensure the tenant gets a full 3 months' notice based on their rent cycle.
Other Considerations:
Fixed-Term Leases Remain Unchanged
Let’s clarify something important: fixed-term leases are still governed by their original terms. For example, if you have a tenant in a one-year lease, you can’t just kick them out after three months. You have a couple of options here. You can either negotiate a mutual agreement with the tenant to end the tenancy early or, if that doesn’t work, give them notice now and then wait for the lease to expire. Patience may not be your favorite virtue, but sometimes it's necessary.
Mutual Agreement to End Tenancy Unchanged
Like fixed-term leases, mutual agreements to end tenancy have also remained unchanged. Although your tenants have a right to a minimum notice period, that doesn't prevent you from making a deal that will benefit everyone. Let's say you'll give your tenant an extra month of free rent to move out early, and they agree. In that case, it's a win-win for everyone. You get to move in early, and your tenant gets an extra month of free rent to make the early move more worthwhile.
What New Buyers and Landlords Need to Keep in Mind
Whether you own a rental or plan to purchase a tenanted property, remember:
Restrictions on Rent Increases: Long-term tenants are protected from drastic rent hikes. You might be itching to adjust the rent, but you must play by the rules. Therefore, if you see a tenanted rental property listed for a great price, don't forget to confirm how much it rents for so you can ensure the current rents will cover all of your property costs.
Short-Term Rentals: If you were considering jumping into the short-term rental game in BC, you should know that it’s pretty much off the table in most communities now unless you’re renting out part of your primary residence.
Mortgage Pre-approvals: Don’t forget about the mortgage game. Mortgage pre-approvals tend to last no more than 120 days max. Giving a tenant a notice requiring more than 120 days could impact your financing options since you won't be guaranteed the same financing and rate you had previously planned for.
Timeline Coordination: You must coordinate your tenant notice timeline with your moving plans. If you’re giving a tenant three full months to move out, but that amounts to four months of waiting, where will you live in the meantime? If you’re relocating from out of town, you don’t want to find yourself in a pinch, stuck in limbo while you wait for your new place.
Final Thoughts
Navigating the real estate waters in BC can be tricky, especially with these recent changes. Understanding the ins and outs of the new three—and four-month notice periods is crucial, as is understanding how these affect your options and what you need to consider as a new buyer. Be strategic about your approach, whether negotiating with tenants or planning your move.
This isn’t just about buying a property; it’s about setting yourself up for success in the long run. Stay informed, stay proactive, and you’ll navigate these changes like a pro. Keep that in mind as you dive into this evolving landscape. Happy house hunting!
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I am a Victoria-based local realtor with eXp Realty. My commitment to honesty, integrity, loyalty, and hard work have been essential pillars for me because they drive a high standard of excellent service for my clients. Helping you realize your dream is my goal!
I service Vancouver Island, but my focus is on Victoria, Sooke, Saanich, Malahat, Shawnigan Lake, Cobble Hill, Duncan, and the rest of the Cowichan Valley.
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