What You Need to Know When Buying a Home with a Tenant in British Columbia

Buying a home that already has a tenant in place can be a great opportunity, whether you’re looking for an investment property or planning to move in later. However, in British Columbia, tenancy laws protect renters' rights, meaning you’ll need to follow specific legal processes if you plan to make changes. Here’s what you should know before purchasing a tenanted property.

1. The Tenancy Stays with the Property

In BC, when a property is sold, the tenancy agreement doesn’t automatically end. The lease remains in place, and the new owner assumes the landlord’s responsibilities under the Residential Tenancy Act (RTA). This means:

• If the tenant has a fixed-term lease, they have the right to stay until the end of the lease term.

• If the tenant is on a month-to-month tenancy, they can remain unless proper notice is given for eviction under legal grounds.

2. Can You Ask the Tenant to Move?

If you’re buying the home to live in (or a close family member is moving in), you may be able to serve a Three-Month Notice to End Tenancy under the following conditions:

• The property is not a multi-unit building (i.e., a condo, apartment, or multiplex with more than one unit).

• You or an immediate family member (parent, child, or spouse) will be living in the home.

This notice must follow strict guidelines, including:

• Providing three full months’ notice to the tenant.

• Paying the tenant one month’s rent as compensation.

• Occupying the property for at least 12 months (otherwise, the previous tenant may file for compensation).

3. What If the Tenant Has a Lease?

If the tenant has a fixed-term lease, you cannot ask them to move until the lease expires. Even if the lease allows for an early termination in the event of a sale, BC tenancy laws override private agreements.

If you need the tenant to leave before the lease ends, you may need to negotiate a mutual agreement with them, which could involve financial compensation.

4. Reviewing the Lease Before You Buy

Before making an offer on a tenanted property, request a copy of:

✅ The lease agreement (to confirm rent, terms, and conditions).

✅ The tenant’s payment history (to check if they are up to date).

✅ Any official notices or disputes with the Residential Tenancy Branch (RTB).

If you’re planning to keep the tenant, this information helps you understand your responsibilities as their new landlord.

5. What Happens to the Security Deposit?

When the property changes hands, the previous owner must transfer the tenant’s security deposit to the new owner. You’ll be responsible for returning it when the tenancy ends.

Make sure to confirm the deposit amount and its interest accrued to avoid disputes later.

6. Buying for Investment? Consider the Risks

If you’re purchasing a tenanted home as an investment, there are additional considerations:

• Rent controls in BC limit how much you can increase the rent annually.

• Eviction rules are strict, and tenants can dispute eviction notices with the RTB.

• Renovations or demolitions require special eviction procedures with four months’ notice and compensation.

Final Thoughts

Buying a home with a tenant in BC requires careful planning. Whether you want to move in or keep the tenant, understanding your legal obligations under the Residential Tenancy Act is crucial.

If you have questions about how a tenanted home might impact your purchase, I’d love to help! Let’s chat about your goals and how to navigate this process smoothly.