In British Columbia’s high-stakes real estate market, more and more homes are sold with tenants already in place.
Before closing a deal on a home with tenants, you should get a clear understanding of BC tenancy laws to avoid problems in the future.
Whether you’re an investor looking for instant cash flow or a future homeowner planning to move yourself in — buying a house with tenants in BC presents both an opportunity and a legal obstacle course.
This guide walks you through the most important things to know BEFORE closing a deal on a tenanted property for sale.
Why So Many Homes Come With Tenants in 2025
With more supply on the BC housing market in 2025 and higher interest rates putting a damper on sales volumes, some investment property owners are starting to rent their properties rather than sell into a more balanced market than we saw in 2020 to 2023.
Very often, we see investors make a quick exit from the real estate market by selling properties with existing tenants in place.
In fact, buying a home with tenants in BC has become a very common practice.
Tenant Rights in BC: You Inherit the Lease As-is
In BC, tenants usually come with the property sale.
The Residential Tenancy Act (RTA) doesn’t care if the title changes hands — if there’s a tenancy agreement in place, it endures after the sale.
What this means for buyers:
- You inherit the lease as-is. You cannot renegotiate terms without mutual consent
- Just because you’re the new owner, does not mean you can ask the tenant to leave immediately (unless they agree to a buyout)
- Even if the lease is month-to-month, you have to follow legal eviction procedures if you want the property vacant
The bottom line: unless you include the right terms in your offer, you might not be able to move in OR change the rental terms for months or even years.
Serving a 3-Month Notice for Personal Use
If you intend to occupy the house yourself after buying, you have to provide the seller with a request — in writing — to give the existing tenant a three-month notice to end tenancy.
The buyer also has to occupy the property for a minimum of 12 months to prevent misuse of this provision.
In some cases, disgruntled ex-tenants will actually scout out the property after the fact to ensure this provision is met. Yes, BC’s rental market is THAT fierce.
Learn more: How to Legally Evict a Tenant in BC
Understanding Tenancy Types in BC
Fixed-Term Tenancies
A fixed-term tenancy is a lease agreement that’s set for a specific duration — which is usually 1 year in BC.
During the tenancy period, both the landlord and tenant are bound by the terms of the standing lease.
In BC, tenancy doesn’t automatically end at the conclusion of the term. Unless you sign a new lease agreement or provide the tenant with proper notice, the lease automatically transitions into a month-to-month tenancy (as of July 1, 2021).
If you’re purchasing a tenanted property with a fixed-term lease in place, you cannot end the tenancy early — even if you plan to move in — UNLESS:
- The tenant voluntarily agrees to terminate (via RTB-8 mutual agreement form, PDF), or
- You obtain an official Order of Possession through the Residential Tenancy Branch, typically for extraordinary circumstances (like significant renovations requiring vacancy)
Month-to-Month Tenancies
With a month-to-month tenancy, the lease agreement continues indefinitely — until either you or the tenant provides proper notice to end tenancy.
If you, or a close family member, plans to move into a tenanted property with a month-to-month lease, you need to serve the existing tenant with a Notice to End Tenancy for Landlord’s Use of Property (Form RTB-32P, which you generate through the RTB’s web portal for landlords).
As of August 21, 2024, your notice must be issued at least three full months in advance of your proposed move-in date.
The move-in date must also align with the tenant’s rental period (typically the first of the month).
To be valid, the notice must clearly state that the buyer or a close family member intends to personally occupy the home for at least 12 months. If that condition isn’t met, the tenant may be entitled to additional compensation and could file a claim for bad-faith eviction.
Tenant Compensation
When ending a tenancy for personal occupancy, the tenant is entitled to one month’s rent as compensation — either paid directly or waived as a rent-free final month. This payment is mandatory, and failure to compensate the tenant invalidates the notice.
Dispute Period
Tenants have the right to dispute the notice to end tenancy, which they must file via dispute resolution through the Residential Tenancy Branch — within 21 days of receiving the notice.
Assuming Existing Tenancies
When you buy a tenanted property in BC, the buyer assumes the existing lease agreements — meaning the new owner has to honor the current rental terms, rent amount, and duration.
Rent increases are regulated and can only occur once every 12 months, with the allowable increase percentage set annually by the Province of British Columbia.
Read more: 2025 Maximum Rent Increase in BC, Canada
Want the Tenant to Stay? Make It Work Financially
If you’re an investor or don’t mind waiting to move in, keeping the tenant can be profitable — if the numbers line up.
Key considerations:
- BC rent increases are capped at 3.5% for 2025 (based on the inflation-linked formula).
- You can raise rent once every 12 months, (using the RTB-7 form) and following strict timelines.
- If rent is well below market, you cannot simply “catch up” and increase the rent by more than the regulated annual percentage. Instead, consider a buyout strategy — if your tenant is willing, or have a family member occupy the property for at least 1 year.
What’s a Tenant Buyout? (And When Should You Offer One)
Sometimes, your cleanest route is to offer the tenant a financial incentive to leave, known as a mutual agreement to end tenancy (RTB-8 form).
Buyouts in BC typically range from $2,500 to $10,000+ depending on:
- Location
- Rental amount
- Time remaining on the lease
- Rental market scarcity
- Your tenant’s cooperation
If your existing tenant is paying well below market rents, buying them out might make good financial sense in the long-term.
Not sure whether you should keep your tenants, buy them out, or move in yourself?
Contact our licensed REALTORS® and property management experts in Kelowna, BC. The Vantage West Group is one of the best Google-rated property managers in the entire valley, and double winner of the Consumer Choice Award.
What to Ask the Seller (Your Due Diligence Checklist)
Before you write the offer, request:
- A copy of the lease agreement (including rent amount, monthly/annual
- Records of rent payments (12 months preferred)
- The security deposit record
- Documentation of any rent increases or written agreements
- The move-in inspection report
- RTB dispute history (ask if any ongoing issues exist)
- Confirmation of notice served (if applicable)
In addition, have a casual conversation with the seller to get to know what your tenant is like in terms of their personality, demeanor, and lifestyle.
Work With The Vantage Group: Kelowna REALTORS & Property Managers
As an investor, buying a tenanted property in BC, Canada is far more complex than you may have imagined.
If you need help navigating the purchase of a tenanted property in the Okanagan Valley, British Columbia, Vantage West Realty is here to help.
At the Vantage West Group, we’ve helped countless buyers acquire investments and personal-use properties with complex tenant situations — and come out ahead.
With hundreds of properties under active management and a 4.9 star Google rating, we’re known as some of the top REALTORS & property managers in Kelowna.
Talk to our real estate investment experts in Kelowna, BC, Canada by phone at 250-868-3151 or send us an email.
We’ll walk you through the numbers, show you details most buyers would miss, and guide you into your next real estate investment with professionalism & confidence.