Residential Tenancies Program: legislative changes

Overview of legislation changes to the Residential Tenancies Program that impact landlords and tenants.

Legislative changes to the Residential Tenancies Program. Changes come into effect 1 February 2022 and 21 March 2022.

Change Details
Rent cap Starting 1 February 2022 – A rent cap is in place until 31 December 2023. For existing tenants, rent can only increase up to 2% each year. The rent cap applies to tenants who have a residential lease, including tenants who have a fixed-term tenancy (lease) and are signing a lease for an additional fixed-term in the same rental unit.

Any new or extra costs for services originally included in the lease (like parking) or removing services originally included in the lease (like electricity no longer being included in the rent) are also considered a rent increase and must be within the 2% rent cap.

Landlords can only increase the rent once in a 12-month period, on the anniversary date of the tenancy (lease). Landlords need to give tenants notice of a rent increase in writing. The renting guide for tenants and landlords outlines the rules landlords need to follow when giving notice to increase the rent.

The rent cap doesn’t apply to:
  • tenants who have a commercial lease
  • tenants signing a new residential lease, except tenants who have a fixed-term tenancy (lease) and are signing a lease for an additional fixed-term in the same rental unit
  • tenants in public housing
  • tenants of manufactured homes (mobile homes) in land-lease communities (mobile parks)
Renovictions Starting 21 March 2022 – Renoviction rules are in place to help protect tenants against evictions due to renovations. Protections include:
  • landlords need to contact tenants before starting a renoviction and try to reach an agreement where both parties (tenant and landlord) agree to end the tenancy (lease) for renovations
  • if both parties (tenant and landlord) agree to end the tenancy (lease), landlords and tenants need to complete Form DR5: Agreement to Terminate for Demolition, Repairs or Renovations
  • if both parties (tenant and landlord) don’t agree to end the tenancy (lease), landlords need to complete Form J: Application to Director to apply to end the tenancy (if mediation doesn’t occur, then a hearing is held and the residential tenancy officer makes a final decision based on the evidence presented and decides if renovations are necessary and require the tenant to move out)
  • landlords need to give tenants at least 3 months notice before the tenant needs to move out
  • landlords can’t give notice until both parties (tenant and landlord) agree to end the tenancy (lease) or a hearing is held and the residential tenancy officer makes a final decision that renovations are necessary and require the tenant to move out
  • landlords need to give tenants 1 to 3 months rent as compensation (the amount depends on the size of the building); compensation is required if both parties (tenant and landlord) agree to end the tenancy (lease) or a hearing is held and the residential tenancy officer makes a final decision that renovations are necessary and require the tenant to move out
Landlords who don’t follow the renoviction rules may need to provide additional compensation for tenants. Additional compensation can include covering moving expenses and paying the difference between the tenants’ new rent amount and the old rent amount for up to 1 year.

Questions about the changes

Residential Tenancies can answer questions about the changes to the acts and regulations.

Legislation

Contact

Residential Tenancies

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