Ending Tenancy for Occupancy by Landlord

Section 49 of the Housing Lease Law allows the landlord to terminate the lease contract because they need to use the rental house themselves. Here, ‘landlord’ includes not only the property owner but also his/her spouse, children, parents, as well as the spouse’s children and parents. ‘Property owner’ here includes both the current owner listed on the property title and the confirmed buyer (whether conditional or unconditional)

Good Faith

When a landlord proposes to take back a rental property for their own use, good faith is crucial. Good faith requires an honest intention without any dishonest motive, regardless of whether the dishonest motive is the primary reason for terminating the lease. When tenants are suspicious, it is the landlord’s responsibility to prove that they are acting sincerely. This means they do not intend to defraud or deceive the tenant, they have no ulterior motive for ending the lease, and they are not trying to avoid obligations under the RTA or the lease agreement. This includes the obligation to maintain the rental unit in a state of decoration and repair that meets the health, safety, and housing standards required by law, making it suitable for tenant occupancy (section 32(1)). If a landlord issues a notice to end a tenancy to occupy the rental unit, but their intention is to re-rent the unit at a higher rent without living there for at least 6 months, then the landlord is not acting in good faith. If evidence shows that the landlord has previously ended tenancies to occupy a rental unit but did not reside for at least 6 months, this may indicate that the landlord is not acting in good faith in the current case. If there are comparable vacant rental units on the property that the landlord could occupy, this may suggest that the landlord is not acting in good faith. The landlord has the responsibility to prove that they plan to occupy the rental unit for at least 6 months and that they have no dishonest motive.

Proper Notice

When a landlord proposes to take back a rental property for their own use, they must notify the tenant in writing two months in advance.

If the buyer needs to move in, the purchase contract must include a ‘vacant possession’ clause, and the notice must be given after the conditions for buying the house are waived, and must include the buyer’s name and current address

Reasonable Time Period

After a tenant moves out at the landlord’s request, the landlord must move in within a reasonable time frame and cannot leave the rental property vacant.

As for how long a ‘reasonable time interval’ should be, there is no set rule; it needs to be determined based on the actual situation. If it’s just moving, ten days to half a month is enough; if renovations are needed, a few months may also be reasonable.

6-month Occupancy Requirement

After the landlord takes over and moves into the rental property, they should reside in the property for at least 6 months before they can change its use and rent it out again.

It should be clarified that the calculation of the 6 months begins from the time of actual occupancy. If renovations were done before moving in, then the time spent on renovations cannot be included in this period.

Legal Consequence of Non-compliance

The translation of the Chinese text into English is: "The legal provisions may seem clear, but in reality, disputes often arise over whether the landlord truly moves into the property. According to Article 51 of the Residential Tenancy Act, if a landlord (or buyer) has ended their tenancy under Article 49 of the RTA and has not:

completed the stated purpose for ending the tenancy within a reasonable period after the effective date of the notice to end tenancy,
or used the rental unit for that stated purpose for at least six months beginning within a reasonable period after the effective date of the notice.

Then, the landlord has the responsibility to prove that they have fulfilled the purpose for ending the tenancy under Article 49 of the RTA and that they have used the rental unit for its stated purpose for at least 6 months. If the landlord cannot adequately prove this, they are likely to face corresponding legal consequences - compensating the tenant with 12 months’ rent."