Landlord use of Property, what you need to know.

Landlord use of  Property, what you need to know. 

During covid there was lots of noise over landlord use of property evictions. Oddly that narrative like many others has slowed down or disappeared in the past year.

Why is there less noise over the landlord’s use of notice?.

The reason there was lots happening during covid is due to the rapidly increasing rental rates many landlords were looking for ways to increase their rents to tenants. Landlords wanted the higher rent and were willing to try a tactic that would have the tenant move and then re-rent the unit at a higher rental rate. We are not hearing this in the current market due to the rapidly decreasing rents. Landlords don’t want their units vacant right now so they are not trying to move the tenants out. If a unit becomes vacant now a landlord could be facing multiple months of no rent, followed by the unit rented at a lower rent then it was before.  

Many landlords found themselves on the wrong end of an RTB case when their notice to vacate for personal use was challenged by the tenants. The process for a landlord use eviction is very straight forward and clearly defined by the act.  Section 49 of the RTA clearly states who can move into the unit after the landlord has said they are using it for landlord use of property. The only people who can move in are the owners (landlords), their spouse, parents or children or the parents or children of the spouse. This is a very small group of people for a reason. It limits the property from being used for anything other than immediate family. 

When a landlord tries to move a person outside these parameters into the property under the landlord us provision they are violating the tenants rights. The government does not like it when landlords violate tenants rights. For this reason they have increased the penalties for abusing tenants rights for the gain of higher rents. 

Many people say the process is hard to follow and one should seek help in doing this process. Professional help is always a good idea if you are unsure what you are doing. 

The first thing you need to do is identify if the person who is going to live in the unit fits the description in the RTA for landlord use of property. If they do, the landlord can proceed with the notice to vacate. Starting in June of 2025 a notice for landlord use must be generated through the RTB website. There is no longer a form to fill out and send to the tenant. It must be filled out online and the system will advise if it is filled in correctly. It also records the people’s names and birthdates of who are planning to reside in the property.  This data is collected for use in the event the tenant challenges the notice.  

The notice must be delivered in a proper format according to the service requirements under the act. You may send documents by email if you have the tenants permission. If you do not have permission to send by email you need to send it in an approved form. 

When you request the tenants move out a landlord must also compensate the tenant for one month’s rent to vacate the unit. This is often done by not collecting the final months rent before the tenants move out. After the tenant vacates the identified party on the notice must occupy the rental property for a twelve month period. Failing to do this could result in the opportunity for the tenant to claim the landlord acted in bad faith when evicting the tenants.   

If a landlord is found to have acted in bad faith when using the for “landlord use notice” the penalty is a full twelve months of rent to be paid to the tenants. 

Why have we not heard this as an issue in the past year?. The rental market changed and with a greater supply of products. Tenant’s are moving out of properties they don’t want to stay in. This allows the landlord to do whatever they want with the property. We are experiencing more clients electing to sell the property instead of re-renting the unit. When the tenant gives notice to vacate, selling the unit becomes easier as you don’t need to deal with tenants. Landlords are also taking the property back for personal use without the worry of providing the proper notice. 

If you are unsure of your responsibilities for landlord use notice we suggest you work with a  professional who can guide you through the process. 

Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com