Tenancy agreements (2024)

A tenancy agreement is a contract between a landlord and tenant. Landlords must prepare a written agreement for every tenancy. Both landlords and tenants must sign and date the agreement.

On this page

  • Written tenancy agreements protect everyone
  • Month-to-month and fixed term tenancies
  • What to includein a tenancy agreement
  • What can't be included in a tenancy agreement
  • Changing a tenancy agreement
  • Tenantrights and responsibilities
  • Landlordrole and responsibilities
  • Forms
  • I need help

Written tenancy agreements protect everyone

A tenancy agreement, also called a lease,is a written agreementbetween a landlord and tenant. Landlords can create theirtenancyagreement, but it needs to have all standard terms.

A tenancy agreementlets tenants live in a rental unit as long as they pay rent and follow the rules. It can also set out the legal terms and conditions of a tenancy.

Tenancy agreements can either be:

  • Month-to-month
  • Fixed term (a set period of time)

All tenancy agreements should be in writing in case of future issues or disputes. If a tenancy agreement is not in writing, the standard terms of a tenancy agreement still apply, but it is best to have a written agreement.

Month-to-month and fixed term tenancies

    Month-to-month tenancies are flexible andongoing

    A month-to-month tenancy, also called a periodic tenancy, does not have an end date. The tenancy renews each month unless the tenant or landlordends it.

    Month-to-month tenancies allow tenantsto stay in a rental unit for as long as they need as long as they pay rent and follow the tenancy rules. This flexibility can be helpful for many tenants.

    Landlord use evictions

    A drawback of month-to-month tenancies is that landlords can evict tenants with 2 to 4 months' notice for the landlord's use of property.This caninclude:

    • The landlord moving into the rental unit
    • A close family member of the landlord moving into the unit
    • Making renovations to the unit
    • Demolishing the unit

    Fixed-term tenancies are stable and have an end date

    A fixed-term tenancy, also called a lease, has a datethe tenancy agreement ends. Fixed-term tenancies are usually for one year. The tenant and landlord can decide to renew it for another year when it endsor let it go month-to-month.

    If the tenant wants to rentmonth-to-month, the landlord can't make them sign another fixed-term agreement.

    Note:In most cases, a fixed-term tenancy can't end simply because the agreement has ended. The landlord can only include a vacate clause, which requires the tenant to leave at the term's end, if it's a sublet or if the landlord or a close family member plans to move in. Otherwise, it automatically becomes a month-to-month tenancy.

    Fixed-term tenanciesare less flexible

    If a tenant decides to end a tenancy early, they will break the lease and may owe the landlord money if the landlord applies for dispute resolution.

    The landlord can only apply for dispute resolution to seek compensation if they have taken steps to mitigate the loss, such as attempting tore-rentthe unit.

    What to includein a tenancy agreement

    Every tenancy agreement needs to have the standard terms that are required by the Residential Tenancy Act, even if landlords create their own agreement.

    These terms make sure that tenancy agreements are fair and help protect everyone.

    Basic information

    Information on the tenancy agreement should include:

    • The full names of the tenant and landlord
    • The address of the rental unit
    • The date the agreement is entered into
    • The address and telephone number of the landlord or authorized representative
    • The starting date of the tenancy
    • The end date of the term of the tenancy agreement
    • Whether the tenancy agreementis a:
      • Month-to-month tenancy
      • Fixed-term tenancy

    Note:Consider including the landlord and tenant's email addresses in the tenancy agreement for sharing documents. Keep in mind that if email addresses are provided, both parties must regularly check their emails to avoid missing important documents.

    The landlord and tenant must decideon other terms

    Rent

    • Include how much rent to pay and when it's due
    • Explain what rent covers, like utilities or fees, and mention if the tenant pays for essential services like heat or electricity
    • Include if the rent changes depending on the numberof occupants

    Deposits

    • Include what deposits are required and when they are due
    • One security deposit and one pet damage deposit can be requested per unit. Neither depositcanbe more than half of one month's rent

    Pets

    • Include whether there are any pet restrictions. Landlords are able to enforce pet restrictions such as:
      • The size of the pets
      • The type of pets
      • The number of pets allowed in the unit

    Standard terms

    In addition to the above terms, standard termsdescriberights and responsibilities of landlords and tenants and must be included in all tenancy agreements. Some important terms to knoware:

    Be sure to include all standard terms in the tenancy agreement by using this form:

    Additional terms

    Tenancy agreements can also include additional terms. These terms are generally binding if the tenant agrees to them and if they do not contradict the Residential Tenancy Act. Some additional terms include:

    An additional term that seems unclear or unfair might not be enforceable.

    What can't be included in a tenancy agreement

    Illegal terms

    Every tenant in B.C. has rights protected by law, no matter what isin the tenancy agreement. This means if any part of the agreement ignores theResidential Tenancy Act, it can't be enforced.

    Example:A landlord can't include a clause in the tenancy agreement that lets them inspect the unit without notice. Even if the tenancy agreement says this, it's not allowed because Section 29 of the RTA states that landlords must give 24 hours written notice.

    Unfair terms

    Tenancy agreements can't include unfair or unreasonable terms. These are known as unconscionableterms and can't be enforced.

    Example:A landlord can't include a term in a tenancy agreement that requires a tenant to put utilities for another unit in their name. The tenant would not useutilities in another unit, so this is anunfair term.

    Changing a tenancy agreement

    The tenant and the landlord must agree to any changes to the tenancy agreement. Mutual agreement ensures the tenant and landlord are on the same page and that the changes are fair.

    All changes to a tenancy agreement should be in writing to protect the tenant and landlord.

    Tenantrights and responsibilities

    Review the tenancy agreement before signing

    Tenants should thoroughly review the tenancy agreement before signing it to make sure they fully understand the terms.

    Ask about unfamiliar terms

    Sometimes tenancyagreements have words or clauses thattenants might not understand. Reviewing the agreement lets tenants ask questions and clarify any confusing parts.

    Discuss changes

    If there's something in the tenancy agreement that the tenant doesn't agree with, discussing it before signing can lead to fewerissues later on.

    Seek help if needed

    If the agreement feels complicated, tenants should ask for help from friends, family members or other trusted individuals.

    Request a signed copy of the agreement

    Landlords must provide tenants with a copy of the tenancy agreement within 21 days of signing.Tenants should keep a copy of the tenancy agreement in a safe place and takephotos to savedigitally.

    Having a copy of the original tenancy agreement is important if the landlord tries to change the terms of the tenancy agreement.

    If the landlord doesn't provide a copy

    If a landlord doesn't provide a copy of the tenancy agreement within 21 days, tenants can seek dispute resolution to request that their landlord follow the law.Dispute resolution is a process to help resolve conflicts between landlords and tenants.

    Tenants should take photos of the agreement after signing it to ensure they have a copy.

    Tenants can dispute illegal or unfair terms

    If a tenant believesthere is an illegal or unfair term in the tenancy agreement, they should first contact their landlord as they may not be aware it is against the lawand may be willing to make thenecessary changes.

    If the tenant can't solve the issue directly with the landlord, they can seek dispute resolution to address the issue.

    Landlordroles and responsibilities

    Provide a copy of the agreement within 21 days

    Landlords must provide tenants with a copy of the tenancy agreement within 21 days of signing it.

    If the landlord doesn't provide a copy, the tenant may seek dispute resolution through the RTB.

    Make sure the agreement includes all standard terms

    Landlordscreating tenancy agreements must ensure that the tenancy agreement includes all the standard terms. The Residential Tenancy Agreement (PDF, 319KB)- Form RTB-1includes all standard terms.

    Ensure the agreement doesn't include any illegal or unfair terms

    Landlords areresponsible ensuringthat the tenancy agreement doesn't include any illegal or unfair terms.

    Tenants may seek dispute resolution if illegal or unfair terms are in the agreement.

    Forms

    I need help​​​

    Tenancy agreements (2024)

    FAQs

    What is the meaning of tenancy agreement? ›

    A written contract between a landlord and a tenant to lease an identified property for a specified term at an agreed rate, and the rights and duties of both parties during and after the lease period.

    What is the most common type of tenancy agreement? ›

    Assured Shorthold Tenancy (AST)

    This term applies to a majority of tenancies and derives from the Housing Act 1988. The hallmarks of an AST are: The property is private (not commercial) The tenancy started after 1989.

    What is required in a California rental agreement? ›

    Security deposits and their maximum limits, rental terms for payment, and late fees must be clearly outlined. California leases also require specific required disclosures such as pest control policies, Megan's Law notifications regarding registered sex offenders, and lead-based paint disclosure for older properties.

    What are my rights as a tenant in California? ›

    Under California law, residential tenants are protected from certain rent increases and may be protected from certain types of evictions. It is important to act quickly if your landlord serves you with an eviction notice, tells you to move out, increases your rent illegally, or if you know cannot afford your rent.

    What is the best tenancy agreement for a landlord? ›

    The assured shorthold tenancy (AST) is the default type of tenancy agreement in the UK; it offers landlords security and flexibility as they can freely determine the rent and claim the right of possession even if the tenant has no fault.

    What is a tenancy in common also known as? ›

    The entire property is available to each owner, regardless of percentage, and that is called undivided interest. Additionally, on the occasion of their death, each co-owner may choose who will be the beneficiary of their ownership as part of their estate. A tenancy in common may also be referred to as a TIC agreement.

    What type of lease is best for a landlord? ›

    In this case, year-long leases are good because it secures good tenants for a long period of time. A lot of landlords will recommend doing a year lease for your first year to help reduce turnover costs—just make sure your tenant screening process is strong.

    What is the new renters law in California in 2024? ›

    ✨Security Deposits: Assembly Bill 12, effective July 1, 2024, caps security deposits at one month's rent, even for furnished units. ✨Eviction Regulations: The Tenant Protection Act tightens requirements for no-fault evictions and adds penalties for violations.

    How long can a tenant stay without paying rent in California? ›

    Once the rent is past due, the landlord can issue a 3-day pay or quit notice. If the tenant doesn't pay their rent balance, including late fees, in that time, the eviction process begins. The entire process, from the notice to the sheriff showing up to eject you, generally takes 30 to 45 days. 30 days pay or quit.

    What can't a landlord do in California? ›

    Retaliatory actions by landlords are illegal in California. This means landlords cannot increase rent, decrease services, or attempt eviction in response to tenants exercising their legal rights, such as reporting housing code violations or participating in tenant organizations.

    What is the new law for renters in California? ›

    Tenants' Rights

    AB 12 limits security deposits to one month's rent, regardless of whether the residential property is furnished or unfurnished. It goes into effect on July 1, 2024.

    What is the maximum rent increase allowed in California? ›

    California's Tenant Protection Act (AB 1482) restricts how much landlords can raise rent for their rental properties. The law imposes a statewide rent cap, limiting annual rent increases to 5% of the current rent plus the local rate of inflation, or 10% of the current rent, whichever is lower.

    How much money does a landlord have to give a tenant to move out in California? ›

    But, your landlord can still require you to move out for one of the “no-fault” reasons listed in the law. If your landlord evicts you for one of these reasons, they must first give you one month's rent or waive one month's rent to help you move out.

    What is the most common type of rental housing? ›

    Single-family houses and apartments in large residential buildings with five or more units were the most popular structure type for American renters in 2022. About 39 percent of the population who lived in rental accommodation occupied an apartment in a multifamily building.

    What kind of lease is most common for residential properties? ›

    In a gross lease, the tenant pays a fixed price for rent, and the landlord is responsible for all operating expenses. This is the type of lease most common for residential properties and multifamily real estate because it is considered tenant-friendly.

    What are the most common leases? ›

    The three most common types of leases are gross leases, net leases, and modified gross leases.
    1. The Gross Lease. The gross lease tends to favor the tenant. ...
    2. The Net Lease. The net lease, however, tends to favor the landlord. ...
    3. The Modified Gross Lease.

    What is an example of a tenancy in common? ›

    For example, if A and B own a house as tenants in common, and A owns 1/3 of the house and B owns 2/3, they both have the right to occupy the entire property. Further, if B sells his 2/3 share of the home to C, A still retains his 1/3 share in the house.

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