chapter 4 periodic tenancy Flashcards
John has a fixed term tenancy in Bill’s building that expires on August 31st. Previously, the tenancy was intended to continue as a periodic tenancy after the expiry of the fixed term.
However, Bill has recently decided that he wants to renovate the suite and that it must be vacated in order for him to do so. John pays his rent on the first of the month.
On March 20th, Bill obtains an Order from the Residential Tenancy Branch, approving Bill’s application to end John’s tenancy for renovations. What is the earliest possible date on which the Residential Tenancy Branch may order John to vacate?
- March 31st
- April 30th
- July 31st
- August 31st
Correct Answer: 4
In the event a landlord wishes to end a tenancy to carry out renovations or repairs, the landlord must first apply to the Residential Tenancy Branch requesting an order ending the tenancy and granting the landlord possession of the rental unit (see section 49.2 of the Act). In order to be successful, the landlord must satisfy the Residential Tenancy Branch that:
the landlord intends in good faith to renovate or repair the rental unit and has all the necessary permits and approvals required by law to carry out the renovations or repairs;
the renovations or repairs require the rental unit to be vacant;
the renovations or repairs are necessary to prolong or sustain the use of the rental unit or the building in which the rental unit is located; and
the only reasonable way to achieve the necessary vacancy is to end the tenancy agreement.
If the Residential Tenancy Branch grants an order ending the tenancy, then the move-out date under the order can be no earlier than four months after the date of the order and would have to fall on the last day of a rental period. If the tenancy is a fixed-term tenancy, the move-out date can be no earlier than the end of the fixed term, even if the end of the fixed term is greater than four months after the date of the Order.
A tenant has been renting a basement apartment from the landlord for over two years on a regular month to month periodic tenancy, without any rent increases.
The tenant has received three months’ written notice from their landlord that the rent will be increased from $1,600 to $1,625 per month. The tenant knows that similar basement suites in the neighbourhood are renting for only $1,500, and they think that the rent increase is the landlord’s way of trying to get them to move out of the house.
They are contemplating terminating the tenancy in order to find something cheaper, but before giving their notice to the landlord, they ask your opinion. You correctly advise them that:
- for periodic tenancies, the Residential Tenancy Act requires four months’ written notice for a rent increase. Accordingly, the rent increase is not effective.
- provided the increase is not more than the change in the Consumer Price Index (CPI) over the past year, the increase is allowable, and they have no right to dispute the increase.
- in periodic tenancies, the Residential Tenancy Act requires that the notice for rent increases be reasonable. As such, one month’s notice would likely have been sufficient.
- the Residential Tenancy Act requires all rent increases to be justifiable. Because similar suites in the neighbourhood rent for significantly less, this rent increase will likely not be enforceable.
Correct Answer: 2
Rent increases in residential periodic tenancies are regulated by Part 3 of the Residential Tenancy Act. Part 3 provides that rent can be increased any time the premises are rented to a new tenant, but that a landlord may also increase the rent if at least 12 months have passed since an existing tenant’s last rent increase, or since the tenant started to rent the premises.
At least 3 months’ written notice of a rent increase is required. Landlords may always increase rents on an annual basis up to an amount equal to the CPI, without having to justify the increase.
Shannon rents a basement suite from Graham on a month to month periodic tenancy. Eight months ago the rent was lawfully raised to $750. Graham has recently agreed to sell his house to Robert, and in the agreement Robert has stipulated that he intends to occupy the basement area. Robert has requested in writing that Graham give the tenant a notice of the end of the tenancy agreement. Which of the following statements is FALSE?
- Graham must provide at least 2 months’ notice to Shannon of the end of the tenancy, but he cannot do this until all conditions precedent in the contract have been satisfied.
- Graham may provide notice ending the tenancy to Shannon; however, the effective date can be no earlier than 12 months from the last rental increase.
- If Shannon can prove that instead of occupying the basement after his purchase, Robert rented it out to an unrelated tenant, she may be entitled to compensation from Robert in the amount of 12 months’ rent.
- On or before the effective date of the notice, Graham must provide Shannon with the equivalent of $750 as compensation.
Correct Answer: 2
Where a landlord enters into an agreement in good faith to sell an occupied rental unit and the purchaser has indicated in writing that the purchaser or a close family member will be occupying the rental unit, the landlord may give notice of the end of the tenancy agreement to the tenant if all of the conditions precedent in the agreement have been satisfied. The landlord who gives such notice must pay the tenant the equivalent of one month’s rent as compensation on or before the effective date. A tenant is entitled to 12 months’ rent if the purchaser fails to occupy the rental unit as indicated. The notice period for landlord use of the property is at least two months, regardless of the date of the last rental increase.
Alex leased a shop from Geoffrey for a term of 48 months at an expressed rent of $6,000 per month, commencing January 1, 2000 and terminating on December 31, 2003. On January 1, 2004, Alex paid Geoffrey $6,000, which Geoffrey accepted. On the first day of the next 8 months, Alex paid the rent to Geoffrey who continued to accept it. On September 20, Geoffrey had an offer from Peter to lease Alex’s shop for $6,800 per month. Geoffrey immediately faxed notice to terminate to Alex, effective October 20, 2004. Which of the following statements is/are TRUE?
a. Because this is a commercial periodic tenancy, either party can terminate.
b. On January 1, 2004 a new periodic lease was created by the actions of Geoffrey and Alex.
c. Geoffrey is entitled to terminate the lease because Alex did not increase his rental payments when the lease was renewed.
d. The notice period will be whatever is reasonable in the circumstances.
- A, B, and D only
- A, B, and C only
- C and D only
- All of the above
Correct Answer: 1
A periodic tenancy is created by implication where the tenant stays in possession of premises and continues to pay rent after a fixed term lease ends. The resulting periodic tenancy is valid and requires notice of termination regardless of whether the rent increased. Either party may terminate a commercial periodic tenancy by giving reasonable notice.
Kyle rents a house from David under a periodic tenancy. Which of the following terms in their lease would contradict a provision of the Residential Tenancy Act?
- The landlord claims the right to distrain for rent that remains unpaid for 15 days after the date that it is due.
- Kyle agrees to vacate the premises upon one months’ notice should David require the house for personal occupation or should David sell the house.
- Kyle agrees to paint the premises and have the carpets professionally cleaned, regardless of their condition.
- All of the above terms contradict a provision of the Residential Tenancy Act.
Correct Answer: 4
Section 26(3) of the Residential Tenancy Act abolishes the right to distrain in residential tenancies. Section 49 requires not less than 2 months’ notice for a landlord to occupy for use or for the sale of the premises. Section 32 places upon the landlord the responsibility of decoration and repair.
