Free British Columbia Tenancy/Rental Agreement

Table of Contents

1. What is a BC Tenancy Agreement?
2. How to Write a BC Rental Agreement
3. Frequently Asked Questions

1. What is a BC Tenancy Agreement?

A BC Tenancy Agreement is a document that officially recognizes a legally binding relationship between two parties, a landlord and a tenant, in British Columbia. A landlord agrees to rent all (or a portion of) their property to a tenant for a fee, and the terms of that rental are laid out in the form of a tenancy agreement.

As a reference, people often call this document by other names:

• BC Rental Agreement
• Residential Tenancy Agreement BC
• BC Rental Agreement Form
• BC Tenancy Agreement Form
• Apartment Lease BC
• BC Lease Agreement
• Rental Contract BC
• BC House Rental Agreement

A standard BC Residential Tenancy Agreement will identify the following basic elements:

• Premises: a house, apartment, condo, basement, room, or attic
• Landlord: the owner of the Premise, aka “Lessor”
• Tenant: the renter who wants to live in the Premises, aka “Lessee”
• Rent: the amount of money paid by the Tenant to the Landlord
• Term: the length of time a Tenant has the right to stay on the Premises

Our How to Write a BC Rental Agreement section lists out each critical detail that should be included in a simple one page rental agreement and multi-page agreement.

Tenancy / Rental Agreement forms may also be used to cover these additional Premises:

• Duplex
• Townhouse
• Room Rental
• Mobile Home
• Vacation Rental
• In-law Suite
• Other living spaces
• Rent-to-own options

Here are a few other examples of what a Landlord or Tenant may agree to in a simple BC Tenancy Agreement:

The Landlord promises to:

• Repair and maintain the normal wear and tear of appliances — like the air conditioner or heater
• Respect the Tenant’s privacy and not make any surprise visits or allow anyone else to use the Premises (“Quiet Enjoyment”)
• Provide a safe and clean home to the Tenant for the Term of the Rental Agreement
• Return the Tenant’s Security Deposit (with interest if required) if the Tenant treats the Premises like their own, and it is still in good condition at the end of the lease term
• Give the Tenant 24-hours advance notice in writing if they need to enter the Premises to fix something or show someone the property
• Investigate any complaints about disturbances

The Tenant promises to:

• Pay the Landlord on time each month on a specific day
• Pay the utility company directly for light, gas, heating, and water — if agreed to and stated in the Tenancy Agreement
• Live in the home only with their spouse, children, and maybe even their parents or grandparents (“immediate family”)
• Not have a dog, cat, chinchilla, potbelly pig, or pet goat in the house without first asking the Landlord or paying a small fee (“Pet Policy”)
• Not to start a business of any kind or engage in objectionable conduct like starting a meth lab  (only “residential” and “lawful” purposes)

A rental agreement clearly spells out the detailed promises between the Landlord and Tenant. It also explains what should happen if they break their promises to each other.

Planning on running a landlord business professionally? Keep in mind that these promises carry the full weight of the law.

When Do I Need a Residential Tenancy Agreement BC?

When a formal relationship exists between two parties, the law recognizes that both the Landlord and Tenant have a special set of rights and obligations. A BC Residential Tenancy Agreement helps protect both parties as well as the property being rented — be sure you use one every time you wish to occupy an apartment or house for lease.

A residential tenancy agreement has the added advantage of laying out potential problems that might occur while detailing possible solutions available to the Landlord and Tenant.

In contrast, an oral tenancy agreement (verbal, spoken, or word of mouth) is difficult to enforce in court, and is unlikely to accurately capture important details over time.

A written version, however, serves as a constant reminder to everyone, including yourself and the Residential Tenancy Branch, about what everyone agreed to at the beginning of the relationship.

If you choose not to use a lease agreement form, the consequences can be severe.

Take a look at this chart of preventable issues a generic rental agreement could resolve:

Potential Problems This Document Will Solve

2. How to Write a BC Rental Agreement

A standard BC rental agreement will generally contain the following:

1. Who is on the hook? (the “Parties”)

A simple rental agreement form needs to name the parties and where they live:

• The Landlord and their current address
• The Tenant and their current address

2. Where? (the “Premises”)

It is common sense for a BC Lease Agreement to explicitly identify that everyone is talking about the same place — a sleek, modern studio apartment in Vancouver or the attic room of a rustic home by Shuswap.

Our free rental agreement requires you write down the exact address and type of place — such as an apartment, house, or condo — being rented (the “Premises”).

3. For how long? (the “Term”)

A standard rental agreement should detail exactly when the lease term begins and ends. By listing the date, there is a clear understanding of the duration of the landlord-tenant relationship.

You can also use a month-to-month rental agreement. However, it carries a different set of rights and obligations than a 1-year rental agreement.

For example, when using a month-to-month lease agreement, a tenant must serve written notice to end tenancy at least one month before the effective date of the notice, and before the day that rent is due.

What is the difference between fixed-term and month-to-month?

A month-to-month lease means the agreement is for a one month period with no predetermined end date and continues month-to-month until either the landlord or tenant terminates the agreement.

A fixed-term lease means the agreement is set for a predetermined, fixed period of time, and expires at the end of the agreement. The length of time may be 6 months, 1 year, 2 years, etc.

According to the BC Residential Tenancy Act, any tenancy agreement entered into after January 1, 2004 MUST be prepared in writing by the landlord.

Note: If the Tenant does not renew the Lease, and the Landlord allows the Tenant to continue staying on the Premises after the Lease expires, the tenancy automatically reverts to month-to-month.

4. For how much? (the “Rent”)

Asking a tenant to “just pay what you think is fair,” or a generic number written on the back of a napkin is not an option.

Your tenancy agreement should explicitly list the monthly rental amount. If you are unsure of what the going rate is for a place, check out Zillow. You can also include the terms under which the rent may be subjected to change in the future by using a Notice of Rent Increase.

It’s important to note that according to BC Residential Tenancy Act, landlords can only increase the rent once in a 12 month period by an amount permitted by law. For residential tenancies, the standard allowable rent increase for 2020 is 2.6%.

Another detail outlined in a standard rental agreement is a point about what happens if the rent is late. Will a late payment fee apply?

For example, if the monthly rent of $500 is due on the first of the month, what happens if the rent is not paid until the 15th of the month? You can use a Late Rent Notice to ensure rent payment is made.

Please note that in British Columbia, the maximum late fee a landlord can charge a tenant is $25.00.

How much should I charge for rent?

It is at the landlord’s discretion to decide how much to charge for rent, but  the cost is usually comparable to other properties within the same area. The monthly rent amount is typically based on the home’s real estate value and can range between 0.8 to 1.1 percent of a home’s value.

For example:

•  $100,000 home value
•  0.8% to 1.1% of the home value
•  $1000 monthly rent = .01 * $100,000 (1% example)

Other basic factors that may affect the rental price includes the neighbourhood and the condition of the property. If you are not sure, it is best to check comparable properties in the area.

5. What about a Security Deposit?

Landlords have the right to collect a Security Deposit from their Tenants. Security Deposits are usually paid up front at the beginning of the lease.

• The Tenant promises that they will treat the Landlord’s home like their own.
• The Landlord promises that they will return the Security Deposit if the Tenant does not damage the Premises.

For more information about Security Deposits, please consult section 17 of the BC Residential Tenancy Act.

In British Columbia, a landlord cannot require a security deposit greater than 1/2 of one month’s rent.

Furthermore, a landlord must return the security deposit to the tenant within 15 days after the date the tenancy ends or they receive the tenant’s forwarding address in writing.

Usually, the Landlord can deduct the following amounts from the security deposit:

• Unpaid rent
• Cleaning costs
• Key replacement costs
• Cost to repair damages to Premises above ordinary wear and tear
• Cost to repair damages to common areas above ordinary wear and tear
• Any other amount legally allowable under the Lease

6. What other details should be included?

Here are some other useful details a written tenancy agreement might include:

Permissions

• Access: may the Landlord come over to use the laundry machine?
• Alterations: can the Tenant paint the bedroom, hang a chandelier in the living room, or install a security alarm system?
• Guests: can the Tenant have a short-term guest stay for two weeks?
• Keys: how many copies of the key can be distributed?
• Pets: can the Tenant have a pet if they ask the Landlord?
• Right to Entry: A landlord can only enter the Premises after giving the Tenant 24-hours advance notice in writing, unless there is an emergency.
• Smoking Policy: can the Tenant smoke cannabis and tobacco inside the Premises?
• Sublet: will the Tenant be allowed to sublet the apartment to someone else without the Landlord’s permission beforehand?
  • Note: The subletting period must be for less than the lease term.
• Water Beds: can the Tenant have a waterbed or “liquid-filled furnishing” that uses 10 or more gallons of liquid?
• *Other: can the Tenant start a small garden in the backyard?

Fees & Payments

• Attorney Fees: who should pay the lawyer fees if there is a disagreement?
• Guarantor / Co-Signer: does the Landlord require the Tenant have someone pay rent if the Tenant is unable to do so?
• Insurance Liabilities: should the Tenant purchase renter’s insurance to cover possible theft or damage of their property?
• Late Rent Fee: should the Tenant be responsible for paying a late fee (up to $25) in the event they miss a rent payment?
• Utilities: who should pay and manage the utilities?

Perks

• Appliances: will the Landlord provide a refrigerator or dishwasher?
• Furniture: will the Tenant need to use the Landlord’s existing furniture?
• Option to Purchase: can the Tenant buy the house at a later time?
• Parking: where can the Tenant park their bicycle, Segway, car, or RV?

Advanced Warning

• Asbestos Disclosure: if the premise was built before 1990, did the Landlord tell the Tenant not to hang pictures on the walls because asbestos exposure increases if the walls and ceilings crumble?
• Fire and Accidents: can the Tenant leave the Premises and end the Rental Contract if a fire, flood, or earthquake destroys the Premises?
• Noise Policy: are there any quiet hours in the apartment building, condominium, or neighbourhood?
• Notice: when must the Landlord tell the Tenant to leave?
• Property Maintenance: who is supposed to cut the grass, take out the garbage, or unclog the kitchen and bathroom drains?
• Renewal: is there an option for the Tenant to renew the Lease?
• Strata: Is the property in a strata development and therefore subject to the Strata Property Act and Regulations as well and strata bylaws?
• Form K: If the property is in a strata, did the landlord have the tenant sign Form K confirming that the tenant has received a copy of the strata bylaws and agree to abide by them.

Legal Speak

• Default: what will happen if the Tenant does not pay rent, or violates a provision of the Rental Agreement (i.e. a 10 Day Notice to End Tenancy, Direct Request, or One-Month Notice).
• Condemnation: what if the City takes the Premises for a public purpose like building a library (i.e. eminent domain)
• Joint and several liability: if the rental unit is damaged by Tim the Tenant, his roommate Tina the Co-Tenant is also on the hook for the repair costs
• Successors: if Larry sells the home, the buyer becomes the new Landlord
• Assignment: if Larry transfers the right to collect rent to Anna, Anna is the “assign” and the Tenant must pay Anna rent
• Severability: if one part of the Rental Lease Agreement is invalid for any reason, the rest of the Lease is still enforceable (i.e. the bad part of the Lease is “severed” or cut out from the Lease)

7. When are you finally done?

Once you have finished negotiating and discussing the details . . .

Remember to PRINT, SIGN, and SAVE:

Step 1: Print – print TWO copies of the Rental Lease for you and the other party.

Step 2: Sign – BOTH the Tenant and Landlord need to sign AND date the BC Rental Agreement form

Step 3: Save – File a hard printed copy of the SIGNED document in a safe place AND scan a soft electronic copy in secure cloud storage like Google Drive or Dropbox.

Alternatively, let Legal Templates take care of this for you.

Step 1: Print or PDF – generate a PDF of the document using our easy form builder that you can print or email to the other party for review as you hash out the details.

Step 2: E-Sign & Share – digitally sign your name and allow the other party to sign electronically.

Step 3: Save & Store – we save a digital copy of your signed agreement and store a copy for both parties on our secure server.

Please note, the landlord must give the tenant a copy of the signed and dated tenancy agreement within 21 days of both parties signing.

Even after a rental agreement has been signed, a landlord and tenant must inspect the condition of the rental unit together. Before the Tenant moves into the Premises, use a Condition Inspection and Report to document the current condition of the Premises. A condition inspection must be completed again at the end of the tenancy.

Most Common Landlord-Tenant Relationships

A landlord or tenant can actually be an organization or company that owns an entire apartment building, as well as just individual people.

Possible Landlords and Tenants

• An individual
  • Homeowners and Renters
  • Family members
  • Users of a public online search engine
    • i.e. PadMapper, Craigslist, Zillow, or AirBnB

• Spouses
  • Husband and wife
  • Same sex marriage partners

• An organization
  • Public housing agency
  • Company employer for an employee
  • Property managers
  • Tenant placement services

• Partners
  • Legally recognized domestic partners
  • Boyfriend and girlfriend

• Friends
  •  Roommates

3. Frequently Asked Questions

General BC Residential Tenancy Agreement Questions

Should the lease start date (effective date) be the same as the move-in date?

The lease start date does not have to be the same as the move-in date. The lease start date is when your tenancy begins, and should be a date prior to the move-in date. Once the Tenant has finalized and signed the tenancy agreement with the Landlord, then they can move in at anytime starting from the effective date of the lease.

How should a Landlord handle violations of a BC Rental Agreement?

In the event the Tenant defaults for any reason other than failing to pay rent (i.e. having a pet if not permitted or breaking any other rule specified in the Agreement), the Landlord may serve notice using the appropriate Notice to End Tenancy form.

The forms available include: 10-Day Notice to End Tenancy, Direct Request, One-Month Notice, and Two-Month Notice. Each from lists all of the valid reasons and the amount of notice the landlord must provide the tenant. For more information consult A Guide for Landlords & Tenants in British Columbia.

What is the difference between lease and rent?

The main difference between lease vs. rent is as follows:

Lease is the written agreement between a landlord and a tenant outlining the duration in which a piece of property will be rented.

Rent refers to the payment — typically a monthly payment — required to use a landlord’s property.

What is the difference between arbitration and mediation?

Arbitration is when an arbitrator — a neutral third party selected by the parties — evaluates the dispute and determines a settlement. The decision is final and binding.

Mediation is when a mediator — a neutral third party selected by the parties — tries to facilitate a compromise and agreement. The decision is nonbinding.

What is Residential Tenancy Branch?

The Residential Tenancy Branch is the department of the provincial government in charge of residential tenancy law. They provide dispute resolution and essentially act as BC’s tenant-landlord “court.” Any agreement reached with its help, or adjudicated by it, is legally binding on both parties.

Rent Questions

When is rent due?

The rent due date is the date when the Tenant has to hand over the rent due for that month.

Rent is usually due on the 1st of the month, but the Landlord is able to change it to another day.

Both the Landlord and Tenant are free to discuss when the best time to pay rent may be, but the Landlord ultimately has the authority to decide the monthly due date.

How will the rent be paid?

There are many ways to have rent paid, however, accepting cash from your Tenant is not recommended.

The most advisable methods of accepting a rental payment include:

• Personal check
• Money order

These options are more safe and secure than cash since they provide a verifiable paper trail. Additionally, they help reduce the possibility of a non-payment dispute between the Landlord and the Tenant.

Whether your property is being managed by a third-party or yourself, the rental contract must provide the Tenant with a mailing address for paper checks to be delivered, as well as information regarding all acceptable forms of payment.

When should I charge prorated rent?

The Landlord may choose to charge prorated rent for a portion of the first month if the lease begins on a day other than the day the rent is due.

For instance, the Tenant moves in on March 18 but the Landlord wants the rent to be due on the 1st of the month. The Landlord would charge prorated rent for March 18th to March 31st and the regular monthly rent is due thereafter on April 1, May 1, and so on.

If monthly rent is $500 and due on the 1st of the month, see the following based on different move-in dates:

• April 1: $500 full rent
• April 15: $250 prorated rent
• April 19: $316.67 prorated rent  ($500 / 30 days = $16.67 per day * 19 days = $316.67)

The prorated rent amount should be explicitly detailed in a residential tenancy agreement.

How much is the late fee?

If a tenant is late paying rent, the maximum late fee a landlord may charge is $25.00.

What is a guarantor (or co-signer)?

A guarantor agrees to pay the rent and other charges on behalf of the Tenant, if and when the Tenant is unable to do so. The guarantor will jointly sign the BC  Tenant, and may also be referred to as a co-signer of the lease agreement.

The guarantor is commonly:

• A parent
• Guardian
• Close friend or relative

Should I require the tenant to have a guarantor?

Usually, if the Tenant does not have a lot of credit history or is particularly young (such as a college student), then the Landlord will require a co-signer or guarantor.

Requiring a co-signer for the Tenant is mainly for the Landlord’s protection if the Tenant defaults on the lease, in which case, the cosigner is responsible for paying the amount due to the Landlord.

A guarantor is usually someone in good financial standing or has excellent credit. Use a Lease Application in order to require any prospective tenants to undergo a background, credit, and proof of income check before allowing them to sign a BC residential tenancy agreement form.

Where can I learn more about failure to pay rent?

In the event the Tenant defaults by failing to pay rent or utilities by midnight on the due date, the Landlord can serve the tenant with a 10-Day Notice to End Tenancy. The notice is cancelled and the tenancy can continue if the tenant pays all the rent and utilities owing with in five days of receiving the notice. Learn more about 10-Day Notice to End Tenancy in the A Guide for Landlords & Tenants in British Columbia.

Security Deposit Questions

When can the landlord use the security deposit?

The Landlord may use the security deposit in certain circumstances specified in the rental contract, such as in the event the Premises are found to be damaged under the Tenant’s care. The landlord cannot charge more than half of one month’s rent according to the BC Tenancy Agreement.

When does the landlord return the security deposit to the tenant?

After the Tenant’s lease ends, the Landlord must return the security deposit to the Tenant within 15  days.

Where can I learn more about security deposit regulations?

Security deposit rules are regulated by the BC Tenancy Act. 

Utilities Questions

Who should be responsible for which utilities?

Normally the Tenant pays for all utilities, but in many cases the Landlord will pay for trash, and sometimes even water. However, you can specify which utilities (electricity, gas, telephone, television, water, trash, sewage, or any custom expense you wish to enter) must be paid by the Tenant, and which ones are paid by the Landlord.

Generally speaking, if the property has an individual meter to track the gas, water, and/or electricity usage of the Tenant, the Tenant will pay for his or her own utilities usage.

If there is no meter and utilities are shared, the Landlord should disclose this in the BC rental agreement form.

Property Questions

What additional information about the property should I include?

If your property requires an additional description or provisions on what is included or excluded from the lease, then it is best to include it — along with any restrictions regarding its use.

Examples of additional information might include:

• The use of the roof, a swimming pool, or some other shared common area in the building
• Neighbourhood quiet hours or guidelines
• Required maintenance of the property, such as lawncare or exterior upkeep
• If the property is part of a strata development

What additional provisions should I include?

What additional provisions should I include?

According to section 32 “Landlord and tenant obligation to repair and maintain” of the BC Residential Tenancy Act, a landlord must maintain residential property in a state of decoration and repair that complies with health, safety, and housing standards required by law. In contrast, a tenant must maintain reasonable health, cleanliness, and sanitary standards throughout the rental unit and residential property.

Use this additional provisions section to explicitly state standards that need to be upheld by both you (landlord) and the tenant. For example,

• “The tenant is required to use the bathroom fan after taking a shower to prevent the development of mold in the bathroom.”
• “Tenant is prohibited from changing locks”.
• “Tenant is prohibited from making unauthorized copies of premises/building fob key”

Permissions Questions

Can I include more than one tenant on a BC rental agreement?

Yes, if the Tenants are living on the same Premises during the same time period and subject to the same terms of the Lease. This is referred to as “joint and several liability”.

Joint and several liability means that all the Tenants are responsible, both individually and/or collectively, for any property damage caused during the Lease.

What should be included in the pet policy?

The pet policy should clearly outline:

• the type of pets that are allowed (if any)
• how many of each type
• the expected care and cleanliness to be maintained

According to the BC Tenancy Act, a landlord who permits a new or existing tenant to have a pet can charge a pet damage deposit. A pet damage deposit cannot be more than half of one month’s rent, regardless of the number of pets.

What should be included in the visitor policy?

The residential visitor policy should specify if guests are allowed and under what conditions.

For example, you may include:

• the maximum length of time a guest can stay
• whether or not giving notice to roommates is required
• and/or any rules and regulations that the visitor must follow during their stay

Right of entry regulations

A landlord may enter the premises at reasonable times for inspection, to make alterations, improvements, and repairs, or show the premise to a prospective tenant or buyer by providing 24-hours notice to the tenant, in writing. However, in the event of an emergency, a landlord may enter the premises without the tenant’s permission.