How much is your move in Fee?
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 includes guest fees, replacement of keys or devices if the landlord changed the keys. Section 6 identifies refundable fees which includes 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 includes 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 will 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 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 and identify the amount of the move in fee and communicate this to potential renters when applying to rent as a cost the 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. Cartref Properties recommends collecting the fee from the tenants and paying the strata directly ensuring the fee is paid.
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
The Residential Tenancy Branch Favours Tenants
Landlords often comment the Residential Tenancy branch favours Tenants. My experience has been when both parties follow the rules and process the Residential Tenancy branch is fair to both parties.
Common mistakes made by landlords include accessing a rental unit without proper notice, raising rents without proper notice or changing locks when tenants fail to pay rent without following the required process for eviction. It was reported recently a Landlord removed a tenants doors and windows due to non payment of rent, resulting in some of the tenants possessions being stolen. When landlords take these kinds of actions it causes governments to look at creating processes and laws to protect tenants rights.
It’s important for landlords to understand their rights and obligations as Landlords before they take action against their tenant. Failing to comply with the Residential Tenancy Act can result in a decision which prevents a landlord from obtaining an eviction, or requires compensation to the tenants. When a landlord follows the Residential Tenancy Act and procedures the decisions will be fair to both parties.
The Residential Tenancy Branch doesn’t like to make decisions that put people out of their home (when tenants rent your property it becomes their home) without valid reasons. During these difficult times it is more important owners make sure they are performing all aspects of rental management properly with their tenants.
If you need assistance managing your rental property Cartref Properties can assist you, please give us a call.
Looking for Property Management you can find more information about us at: www.cartrefproperties.com
You owe me more money?
Damage and Pet deposits are part of the process when renting a property in BC. Returning damage and pet deposits is often a situation which creates conflict between Landlords and Tenants. Both parties should be familiar with the requirements for damage and pet deposits at the start and during a tenancy.
Landlords are permitted to collect the equivalent of 50% of the first month’s rent for a damage and pet deposit from a tenant at the start of a tenancy. What this means is when the rental amount was $2000 a landlord would collect $1,000 for a damage deposit and $1,000 for a pet deposit.
One often misunderstood part of deposits is, the amount can’t change. Once the tenancy has started the amount collected by the landlord remains the same during the entire tenancy. Tenants may live in a property for multiple years where rent increased annually. If a landlord increases the rent they are unable to request a tenant increase the amount of damage or pet deposit they have already paid.
At the end of a tenancy Landlord’s are required to return the damage deposit to the tenant when no damage has been identified including interest payable. Since 2009 the amount of interest payable to tenants has been zero. This means any tenancy started after 2009 owners aren’t responsible for paying interest on the deposit money.
It’s important for owners and tenants to understand there are steps both parties must participate in before damage deposits are returned to tenants, which we will explore in a future post.
Looking for Property Management you can find more information about us at: www.cartrefproperties.com
What’s the Difference?
Why do Strata Corporations have Rules and Bylaws? All Strata Corporations will have bylaws when they are formed. The Strata Property Act has a set of standard bylaws which all strata Corporations begin with. The developer has the right to amend, add or change the bylaws before the property is developed. They can also create a set of rules.
Rules govern the use, safety and condition of common property shared by all owners.
This is the significant difference between Rules and Bylaws. Bylaws are created for the administration of the Strata Corporation. They are for management of all parts of the building including use and enjoyment of strata lots, maintenance of property and building assets. A rule would not be created to govern use of a strata lot.
Another difference for rules is enforcement. Rules and bylaws both have penalties a strata can apply. The strata Property act outlines limits for fines of rules and bylaws. The standard bylaws limit fines to $10 for a rule and $50 for a bylaw infraction. A strata may change these limits to be $50 for a rule and $200 for a bylaw. In order to apply the higher amounts the strata must have amended the standard bylaw.
One other important difference owners should be aware of is, council has the right to create a rule during the year without owners approval. Rules are often created for visitor parking, renting an amenity room, use of a fitness facility or other outdoor activities that could affect your tenants. It is important owners read council meeting minutes to identify if a new rule has been created and advise your tenants of any changes. If council creates a rule at the next General Meeting the rule must be ratified by the owners. If the rule is not ratified it ceases to exist.
Looking for Property Management you can find more information about us at: www.cartrefproperties.com
Fixed Term Lease
In 2017 the BC Provincial Government made a change to the Residential tenancy regulations regarding fixed term tenancies. Section 97.2 a.1 outlines when a fixed tenancy can include a term requiring a tenant to vacate the property at the end of the tenancy.
Before the change in 2017 a landlord could have a tenant sign a fixed term tenancy agreement which required the tenant to vacate the property at the end of the term. When rents are increasing a fixed term was used by landlords to increase rents beyond the allowable limits outlined by the government. Landlords would request tenants sign a new lease at a higher rate to continue residing at the property, or have tenants move out so landlords could rent to another tenant for a higher rate. The change in 2017 limits when a fixed term clause can be used. Section 13.1 of the residential tenancy regulations identifies two requirements for a fixed term clause. One the landlord must be an individual, second the person moving into the rental unit after the tenant vacates must be a close family member as defined in section 49 of the Residential Tenancy Act. A close family member is identified as a parent, spouse or child of the owner. Or the parent, child or spouse of the spouse of the owner.
If you have a fixed tenancy agreement and are an individual owner your tenant may have a right to not vacate the rental unit at the end of the fixed term. This prevents landlords from manipulating the tenancy to increase the rent above the allowable limits provided by the provincial government. Before signing a fixed term tenancy agreement with your tenants review these sections of the Residential Tenancy Act and Regulations to ensure you are in compliance.