2024 Year in Review
Property Owners have had to deal with quite a few changes and challenges regarding Rental Properties in BC this year. Highlights include interest rate changes, Residential Tenancy Branch Rules and regulation updates and clarifications.
Recent changes to tenancy rules with the BC Residential Tenancy Act (RTA), affects both property owners and tenants. These changes aim to provide greater tenant protections and clarify responsibilities for property owners. Some of the key updates:
Notices and Evictions:
The notice period for ending a tenancy for property owner use has been extended from 2 months to 4 months. Additionally, tenants now have 30 days (up from 15) to dispute an eviction notice.
When ending a tenancy for personal use, property owners must ensure the occupant remains in the property for at least 12 months, failing which property owners may face penalties, including compensation of up to 12 months’ rent for the tenant.
Prohibiting rental price increases when adding minors:
Rent increases based on the addition of minor occupants (under 19) are now prohibited. This change protects families from rent hikes when they have children or add minors to the household.
Mandatory Digital Tools and Compliance, this is now tracked.
Property owners are required to use a new online Property Owner Use Web Portal for issuing notices related to ending tenancies for personal use. This portal also facilitates compliance monitoring by the Residential Tenancy Branch (RTB), helping to curb bad faith evictions.
Financial and Administrative Changes, this could be costly if the rules are not followed.
The compensation tenants receive if a property owner ends a tenancy but does not follow through on the stated reason has been increased. Tenants may also withhold equivalent rent to cover compensation owed under specific conditions.
There is a cap on claims in dispute resolution proceedings unless property owners or tenants waive the right to recover amounts above the limit (e.g., $35,000 or $65,000)
These changes took effect starting in mid-2024, with some implemented in phases. They aim to balance tenant security with property owner flexibility while ensuring accountability. For more details or legal advice, you can consult resources like the Residential Tenancy Branch or legal professionals familiar with the updated legislation.
The Lower Mainland Rental Market, always changing!
The rental market in the Lower Mainland (encompassing cities like Vancouver, Richmond, Burnaby, Surrey, and others) is experiencing significant shifts due to an increase in the supply of rental properties. There are many factors that may be in play.
Increased Housing Supply:
Developers have been building new rental-focused buildings and condominiums, some of which are now entering the market. This larger inventory gives renters more options, reducing competition and putting downward pressure on prices.
Shift from Short-Term to Long-Term Rentals:
With changes in travel patterns and local regulations on short-term rental platforms like Airbnb, many property owners have moved their properties to the long-term rental market, adding to the supply.
Economic Adjustments:
High interest rates may have prompted some homeowners to rent out their properties instead of selling, further increasing the pool of available rentals.
The population is moving!
If some residents are moving to other regions with lower costs of living, the demand for rentals in the Lower Mainland could decline slightly, softening prices.
Seasonal Trends:
Rental markets can experience seasonal fluctuations, with lower demand in colder months, closer to holidays can lead to temporary price reductions. It is harder to rent in the winter.
What are the implications?
For Renters:
This is a favorable time to re-negotiate agreements, some developer property owners may offer incentives like reduced rent, free utilities, or no-cost parking to fill vacancies.
For Property Owners:
Higher vacancy rates may require property owners to adjust rental prices or make improvements to the property to attract tenants.
CASA Rental Management monitors neighborhood-specific trends and seasonal changes. Because the rental market is fluid, it helps to have a professional property Management like us, to keep you informed, and supported. This alleviates your stress, and we make sure that your property is well looked after.
We at Casa Rental Management look forward to working with you in 2025, and please call us if you have any questions or concerns.
Warm Regards,
Tammy de Diego Mott - VP of Operations
