Is the move- in fee reasonable?
There are many costs Landlords incur when renting their property. The Residential Tenancy Regulations outline prohibited fees, refundable fees and non-refundable fees owners and tenants may encounter.
Section five of the Regulations identifies prohibited fees which include guest fees, replacement of keys or devices if the landlord changes the keys. Section 6 identifies refundable fees which include keys or devices which are not the sole access to the property and can only be the direct cost of replacement. Section 7 identifies non-refundable fees permitted, which include direct costs for replacing keys, or additional keys, service fee charges for returned payments, and move in or move out fees.
Item(e) Move in or Move out Fees charged by Strata Corporations are fee’s Landlords are permitted to charge tenants when renting property in a Strata Corporation. All Strata Corporations have a move in and out process outlined in their bylaws or rules. The bylaw or rule will identify a fee which is charged to owners/tenants when a move in or out occurs. Some Strata Corporations may only have a move-in fee and no move out fee.
Landlords should be familiar with the bylaw or rule which identifies the amount of the move- in fee and communicate this to potential tenants when applying as a cost tenants will be required to pay. Landlords can collect the fee from the tenants and pay the strata directly or have tenants pay the Strata Corporation directly themselves.
What many owners and tenants are not familiar with, are the fees “reasonable”. Section 6.9 of the Strata Property Regulations identifies that strata corporations may have fees for use of common property, but that fees must be reasonable. If you rent a unfurnished property the CRT has identified in multiple cases that the industry standard is showing fees in the range of $50 to $200 and finding this to be reasonable. If you rent a furnished property, is the $200 fee reasonable. The CRT again has ruled in multiple cases that a bylaw needs to be clear on what a move entails and that the fee must be reasonable. The Watson case is the standard reference as to what is “reasonable”. In that case it was determined the $100 move in fee for a roommate not moving any furniture in was excessive and the fee was reduced to $25, as the strata could not identify what actions it took to prove the cost of $100. Many strata corporations will even try to apply the move-in fee for a single piece of furniture being delivered. CRT rulings have determined this alos does not constitute a move, and therefore a move in fee should not apply.
Check your bylaws and see what your move in and out fees are before renting your property.
If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com