On May 25, the Board’s Government Relations (GR) committee asked, “How have the new tenant protections affected you or your clients?”
We wanted to learn what’s been happening out there since the COVID-19 restrictions were put in place, and you delivered. There were positive and negative stories, pictures and even a video in the input we received, depicting what can happen if the police are called in to help a landlord gain access to a rental unit with an uncooperative tenant and unsafe conditions.
We were taken aback by the number of responses we received and the serious, stressful situations some landlords are finding themselves in, with potentially crippling financial long-term implications.
We heard from you that some:
- tenants are simply refusing to pay rent;
- tenants are not applying for the BC Temporary Rental Supplement program even if they may be eligible;
- landlords who cannot collect their rent are facing significant stress both financially and mentally;
- rental units are falling into disrepair and posing a health risk;
- property owners are not able to sell their rental property with tenants in them or no potential buyers until the restrictions are over;
- owners are reluctant to rent out empty properties; and
- some developers are putting agreed-to purpose-built rental properties on hold.
We shared the stories we collected on these types of concerns with the provincial government and asked them to take action. Your input was included in a written submission that the GR committee prepared for the government’s annual budget consultation and summarized in a new report for Fraser Valley MLAs called, “Impact of the Temporary COVID-19 Pandemic Residential Tenancy Restrictions on Fraser Valley Real Estate Board REALTORS® and/or their Clients.”
We said that while we understand the government’s overarching goal to protect people who are vulnerable with their restrictions, we asked for fairness, especially when it comes to the interests of landlords, which we feel are also important.
We asked the government to, specifically:
- amend the residential tenancy restrictions so they support landlords as well as tenants;
- recognize and reduce the burden of risk on landlords by offering financial assistance to support landlords who are having difficulties covering their expenses during this time, which may include a program in partnership with the federal government;
- provide a clear path forward and date for removing and transitioning out of the restrictions to provide certainty to landlords, tenants, Realtors and potential buyers and sellers of rental properties; and
- separate the residential tenancy restrictions from the provincial state of emergency, especially as far as the dates go to reduce confusion and lead to more considered decision making for parties involved in a residential tenancy situation or rental property sale.
We have encouraging news to share.
The government is taking action on the residential tenancy restrictions:
On June 19, Selina Robinson, the Minister of Municipal Affairs and Housing said, “Recognizing the financial challenges faced by many people, our government is extending the TRS [temporary rental supplement] and maintaining the rent freeze and the ban on evictions for non-payment of rent.”
She goes on to say in the news release that, “We’re continuing to protect renters as we also ensure landlords are receiving some income during this time.”
Temporary Rental Supplement (TRS) extended by the BC government:
People who are already eligible to receive the TRS do not need to do anything to continue receiving it. They will receive an email asking them to confirm they plan to live at the same address through July and August. New applications for the TRS will also accepted until August 31 and applicants will be eligible for the supplement for the month they applied and all subsequent months.
Blanket ban on Residential evictions ends
On June 24, the BC Government made it possible to evict residential tenants for reasons other than non-payment of rent. That means real estate transactions that require vacant possession can now proceed.
Landlords with existing orders for eviction can take them to the courts beginning July 2, 2020, for enforcement and can enforce a writ order effective immediately. Landlords can enter a rental suite with 24-hour notice and don’t need the tenant’s consent. And documents can now be served in person.
REALTORS® and landlords are expected to follow health guidelines like physical distancing, cleaning and wearing masks when appropriate. Please continue with your diligence in showing property and meeting with clients. Check out the protocols from WorkSafeBC for more information.
The government commits to giving advance notice before lifting the moratorium on evictions for non-payment of rent at a future date. A framework will be put in place that will require landlords to work with tenants to repay rent that’s owing over a reasonable period of time.
For now, the freeze on rent increases remains in place, as does a landlord’s ability to restrict access to common spaces.
Non-payment of rent:
The government maintains that people will have advance notice before the ban on evictions for non-payment of rent is removed. A framework will be put in place requiring landlords to work with their tenants to repay rent that is owed to them over a reasonable period of time. Tenants who have not had financial difficulties are expected to continue to pay rent. Tenants will also be responsible for outstanding rent when the evictions ban for non-payment is lifted.
Landlord access for repairs, maintenance, showings:
When a new ministerial order comes into effect later in June, landlords will be able to access their units for repairs, maintenance and showings, provided they give their tenants the standard notice period. Both landlords and tenants will be expected to practice physical distancing at all times, and wear appropriate personal protective equipment, including masks.
Landlords will continue to have the ability to restrict access to shared spaces to ensure health and safety protocols are followed, such as physical distancing and limiting the number of people in elevators and laundry rooms, and in places where adequate cleaning cannot be maintained, such as gyms.
We appreciate all the input we received on the residential tenancy restrictions and will update you again when there are more developments to share.
Updated: June 25, 2020
Source: FVREB Communications