Photo: Contributed

The province is taking steps to protect renters from massive rate hikes.

The government has introduced legislation to close a loophole in fixed-term leases and improve the rights of renters.

Municipal Affairs and Housing Minister Selina Robinson said the new legislation will mean landlords can no longer use the loophole to bypass annual rent control, and renters will now be protected against massive rent hikes at the end of a lease.

"We are protecting the rights of renters who, for too long, have been left open to unfair and unjustified rent increases," said Robinson, introducing amendments to the Residential Tenancy Act and Manufactured Home Park Tenancy Act.

If passed, the amendments will:

• Restrict a landlord's ability to use a vacate clause in fixed-term tenancy agreements to certain circumstances only; and
• Limit rent increases between fixed-term tenancy agreements with the same tenant to the maximum annual allowable amount (currently two per cent plus inflation).

"Our top priority is eliminating fixed-term tenancies with vacate clauses," said Andrew Sakamoto, executive director, Tenant Resource and Advisory Centre.

The new rules will apply to both new and existing tenancy agreements.

The legislative amendments will also streamline the dispute resolution process for the return of security deposits. If a landlord doesn't return a security deposit, a tenant will be able to apply for a monetary order through an expedited process. This will ensure that tenants get their deposits back more quickly – three weeks instead of waiting up to six months.