Province Outlines Repayment Framework

In response to the Housing Minister’s July 16th announcement addressing their plan for rent increases, unpaid rent during the State of Emergency, and unpaid rent up to September 1, for our members we have prepared a detailed explanation to assist you in managing this process. As it has been said countless times, this pandemic is unprecedented and nothing is for certain. Keeping that in mind please note that the government’s plan may be altered to adapt to an ever-changing environment. 

Unpaid Rent and/or Utilities from March 18 to August 31, 2020

Please Note: Do not act immediately, this is for informational purposes only; there will be a RTB Repayment Plan form coming soon.

Landlords with tenants that have not paid all or partial rent during the State of Emergency must offer their tenant a repayment plan and give the tenant until July 2021 to pay all arrears in full. Landlords that have not served a repayment plan to their tenant(s) will not be able to end the tenancy for unpaid rent. Tenants who default on their repayment plan may be subject to a Notice to End Tenancy. Landlords that have already entered into a rent deferral agreement can replace that previous agreement with a new repayment plan that calls for rent and utilities owing.

Unpaid Rent and/or Utilities from September 1, 2020 and Onward

Tenants are required to pay rent and utilities in full as of September 1. Tenants that do not pay their rent and/or utilities in full on the day it is due may be subject to a 10 Day Notice to End Tenancy. As always, we encourage landlords to communicate with their tenant to avoid the need to end a tenancy. Landlord should review the process on how to utilize the 10 Day Notice to End Tenancy. LandlordBC members have access to detailed guides addressing this and other topics related to this new RTB process.

Rent Increases

Any rent increase with an effective date of April 1, 2020 onward, has had its effective date delayed by Ministerial Orders M089 and M195 and again by the updated Residential Regulations. The most recent change has delayed the effectiveness of rent increases until December 1, 2020. This means that any rent increase previously served between December 2019 and August 2020 will now have an effective date of December 1, 2020.

Landlords who have already served a Notice of Rent Increase do not need to serve a new notice. It is also important to note any rent increase contemplated for 2021 must consider this delayed effective date. As rent increases can not be effective less than 12 months from the last time the rent was increased meaning that tenants who will see a rent increase in December 2020 will not be subject to another increase until December 2021. Landlords should review the process for issuing rent increases.