Buying a Rented Property in Greater Vancouver

Check the Tenancy Before You Buy a Rented Home

Rented homes on the market come with a tenancy attached, so confirm the lease type, the rent and the notice rules before you write an offer.

The tenancy travels with the property. When you buy a tenanted property in BC, the existing lease binds you the day you take title, at the rent that was already in place, with the deposit and its interest transferred to you. Ask your realtor for the written tenancy agreement, the rent roll and proof of the deposit before you remove subjects, and read the documents rather than accepting a summary.

Find out which kind of agreement it is. A fixed term with months still to run cannot be shortened because ownership changed; a month-to-month tenancy is more flexible but still protected. Confirm the tenant move-out date if one exists, and confirm in writing any side arrangement about parking, storage or utilities made with the current tenant.

Confirm What the Residential Tenancy Act Lets You Do

BC tenancy law, not the contract of purchase, decides what happens next. A buyer who genuinely intends to occupy the home can ask the current owner to serve a notice to end tenancy for purchaser's use, but the request must be in writing, the notice period and compensation are set by the Residential Tenancy Act, and the tenant may dispute it. Have your lawyer confirm the wording rather than relying on the listing.

Rent is the other constraint. Increases are capped annually and cannot be applied because the property changed hands, so treat the current rent as the figure you inherit. Where the purchase is an investment property rather than a home you will occupy, ask your mortgage professional how much of the rental income a lender will actually count.

Then time the completion. Vacant possession is a term you negotiate, not something that follows a sale, and the notice periods to end the tenancy in BC run longer than most completion dates. If you need the rental unit empty on possession day, say so in the offer and set a timeline that is realistic for a tenant in BC entitled to full notice.