LANDLORDS BEWARE: The Costly Risks of Failing to Follow Through on a Two-Month Notice to End Tenancy
What happens if you serve a two month notice to end tenancy for landlord use but don't end up moving in or can't afford to? Now, the tenant is suing you for 12 months of rent. Let's break this down and understand what you need to know.
What is a Two-Month Notice to End Tenancy?
A landlord may end a tenancy with two months' notice if the landlord, a purchaser, or a close family member intends to occupy the rental unit. This also applies when a rental unit is sold and the purchaser or a “close family member” of the purchaser intends in good faith to occupy the rental unit.
Who Qualifies as a Close Family Member?
A "close family member" includes the landlord’s parent, spouse, or child, or the parent or child of the landlord's spouse. Other relatives such as siblings, aunts, or nieces do not qualify under this definition.
The Importance of Good Faith
When serving a two-month notice to end tenancy for landlord use, it's crucial that you follow through on your stated intentions. The burden of proof is on the landlord to convince an arbitrator to uphold the eviction notice. The primary rule is that the landlord must act in good faith. This means genuinely intending to occupy the rental unit or having a close family member do so.
To comply with the law, the landlord or a close family member must live in the rental unit for at least 12 months. Failing to do so, or re-renting the unit at a higher rate, demonstrates bad faith. Tenants often catch landlords attempting to re-rent the unit through postings on Craigslist or Facebook, which can be used as evidence of dishonesty.
Leaving the Property Vacant
Leaving the property vacant also contradicts the intention to occupy it. The 12-month occupancy requirement ensures the landlord or close family member occupies the rental unit as stated in the two-month notice to end tenancy.
Extenuating Circumstances
To avoid paying the 12 months' rent compensation to the tenant for not occupying the property as per the two-month notice to end tenancy, the landlord must show that there were extenuating circumstances. These are scenarios that prevent the landlord or close family member from moving in as planned, such as the death of the intended occupant or the destruction of the rental unit in a wildfire. The specifics of what qualifies as extenuating circumstances can vary, and each case is evaluated individually by the Residential Tenancy Branch (RTB) arbitrator.
Consequences
Act in Good Faith or Face 12 Months' Rent Liability!