| Section 2 | Tenancy Agreements |
| Sub-Section 2.13 | Tenancy Agreement Renewal |
| Legislation | s. 21 – 24, s. 87(5), s. 91, The Residential Tenancies Act |
Definitions |
Anniversary date: the date on which a landlord is entitled to increase the rent on a rental unit. In some residential complexes, all units have the same anniversary or rent increase date. In other complexes, the anniversary dates may be spaced throughout the year. A landlord can usually increase rent only once every 12 months. Annual rent increase guideline: the percentage that a landlord can increase rent without applying to the Branch for approval. The Government sets the amount each year. The guideline takes effect on January 1. A landlord can apply for a larger increase if they can show that the guideline will not cover their increases in expenses. The guideline applies to most rental units, including apartments, single rooms, houses, duplexes, mobile homes and mobile home lots. The Residential Tenancies Act does not apply to rent increases on land leases. Fixed-term tenancy agreement: a tenancy agreement for a specific period of time, usually one year. Month-to-month tenancy: a tenancy agreement for a month at a time with no specific end date. Tenancy agreement: a contract between a landlord and a tenant that sets out the basic rules for living in a rental unit. It can be written, oral or implied. Temporary tenancy: where the landlord rents their home as a rental unit for a temporary period, with the understanding that the landlord will need the residence for their own use at the end of the period. |
| Policy | Unless a landlord gives a proper notice to end a fixed-term tenancy agreement, the landlord must give a tenant a new tenancy agreement or a renewal agreement at least three months before the expiry date of the existing tenancy agreement. The new tenancy agreement:
<><><><> A landlord and tenant can agree to change the terms of the new tenancy agreement. Or, they can agree to different benefits and obligations. Any changes should be written in the new agreement. <><><><> If a landlord wants to increase the rent by more than the guideline, they must apply to the Branch for approval. A landlord and tenant can’t just agree to raise the rent by more than the annual rent increase guideline. <><><><> When a landlord gives a tenant a new fixed-term agreement, the landlord must also let the tenant know, in writing, that;
<><><><> Sometimes the rent increase or anniversary date is not the same as the renewal date. This type of agreement is often called a "step-lease". A step-lease has two columns in the "amount of rent payable" section. The first column shows the rent the tenant will pay for the first part of the agreement; the second column shows the effective date of the rent increase. For example: The tenancy agreement is from October 1 to September 30. The anniversary date on the rental unit is April 1. The tenant pays $500.00 per month from October 1 to March 31. On April 1, the rent increases to $505.00 per month. When a landlord needs to offer a renewal, the landlord may not always know the actual amount to put in the second column. This can happen when:
In these cases, the landlord must complete the second column of the tenancy agreement by:
For example: The tenant pays $500.00 per month. The landlord does some initial calculations and is considering applying for an above guideline increase of 6%. If the landlord is confident that the 6% increase will be the amount they will be applying for, they can insert $30.00 into the second column of the agreement. If the landlord is not certain that 6% will be their final amount, they might want to show an increase of 8% to allow some flexibility. In this case, the landlord would insert $40.00 into the second column. Once the landlord knows the actual dollar amount of the rent increase, they must still give the tenant three months’ w ritten notice. The tenant still has the right to object to any rent increase. <><><><> A tenant must return the signed renewal agreement to the landlord at least two months before the existing agreement ends. Otherwise, the tenancy ends on the date the existing tenancy agreement haends. If a tenant doesn’t return a renewal, a landlord may want to confirm tt the tenant does intend to move. This may help the landlord avoid having two tenants for one unit. <><><><> If there are two or more tenants named on the agreement, the landlord should make sure that each tenant signs the renewal. If the landlord accepts a renewal that is not signed by all the tenants, the landlord may only have the right to file a claim against the tenant or tenants who signed the agreement. If one or more of the tenants chooses not to renew, the landlord can terminate the tenancy on the date the existing tenancy agreement ends or ask the remaining tenants to sign a new agreement. If the landlord wishes to change some of the terms and conditions in the agreement and the remaining tenants agree to the changes, the landlord should provide a copy of the new tenancy agreement and a prescribed Notice to New Tenant form to the tenants that are planning to remain in the rental unit. The landlord should complete a condition report with all of the original tenants on or before the last day of the original tenancy. If the landlord does not have a claim against the security deposit, they must return it to the original tenants. If the landlord has a claim against the security deposit, they must provide a copy of the claim to the tenants. (See Subsection 10.4) The landlord should also complete a new condition report with the remaining tenants and collect a new security deposit. <><><><> Prior to June 2005, if a landlord failed to provide a renewal agreement to a tenant for two consecutive terms, the tenancy was considered to be month to month. Tenancies that became month to month under this circumstance continue to be month to month unless the landlord and tenant agree to change it to a fixed term. These tenancies are not affected by current legislation [Section 21(5)] which is described in the following paragraph. If the landlord doesn’t give the tenant a new tenancy agreement on time as required by the legislation, and the tenant continues to live in the rental unit after the end of the existing tenancy agreement, the agreement is renewed for another term. The term of the renewed agreement is the same as the term of the original agreement or 12 months, whichever is less. For example: A tenancy agreement runs from October 1 to September 30. To properly renew the agreement, the landlord must offer the tenant a new tenancy agreement before July 1. The landlord does not offer the renewal on time and the tenant is still in the unit on October 1. In this case, the agreement is renewed from October 1 to September 30. Another example: A landlord and tenant sign an 18-month tenancy agreement from October 1, 2004 to March 31, 2006. To properly renew this agreement, the landlord must offer the tenant a new tenancy agreement before January 1, 2006. If the landlord does not offer the renewal on time and the tenant is still in the unit on April 1, 2006, the agreement is renewed for the maximum of 12 months from April 1, 2006 to March 31, 2007. The landlord may increase the rent during the term, with three months’ written notice to the tenant. When an agreement is automatically renewed because of a landlord’s failure to offer a renewal, the tenant may terminate the renewal agreement by giving the landlord notice of one rental payment period. For example: When an agreement is automatically renewed from October 1 to September 30, the tenant can give notice on or before March 31 to end the tenancy on April 30. <><><><> A tenancy may become month to month if the tenant:
For example: A tenancy agreement runs from October 1 to September 30. The landlord offers the tenant a renewal on June 20. The tenant doesn’t return the agreement by the end of July and doesn’t move on September 30. On October 1, the tenant pays their rent and the landlord accepts the payment. By accepting the rent, the landlord creates a new month to month tenancy. <><><><> This policy on renewing tenancy agreements doesn’t apply to temporary tenancies. |
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Overview |
This policy is included as information for tenants, landlords and officers. If landlord and tenants aren’t able to solve problems that may arise when a tenancy is renewed, they can ask the Branch for help. |
Steps ▼ |
1.The officer encourages the tenant and landlord to share information, and to discuss the problems, to try to come to an agreement. 2.When a landlord or tenant asks the Branch for help with a tenancy renewal problem, the appropriate officer follows the procedures for:
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Forms & Form Letters |
Standard Residential Tenancy Agreement |
X-Referencing |
For information on mediation, see Section 1. |
Policy Developed |
September, 1992* |
Last Revision |
May, 2015 |
Other Resources |
None |
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