Returning Security Deposits
At the end of the tenancy the Landlord and tenant must complete the move out process before the landlord returns the damage deposit to the tenant.
The move out process includes completing the move out inspection with the tenant. At the start of the tenancy a condition inspection report should have been completed by the Landlord and the tenant. Landlords need to bring that same report to the move out inspection and compare the current condition of the property.
After reviewing the condition of the property at the end of the tenancy, both the Landlord and the tenant should sign the condition inspection report. The report has a section where Landlords and tenants can state they agree or why they disagree with the report. It is important for a tenant to sign the document, even when they disagree with what the Landlord indicates on the report. If the two parties are not able to agree on the condition and amount of the deposit to be returned, then the landlord must file a claim with the RTB to be allowed to keep those funds. When Landlords apply to the Residential Tenancy Branch requesting to keep the damage deposit they are required to submit the condition inspection report as evidence to why they should be allowed to keep all or part of the damage deposit.
When the Landlord fails to complete the inspection report at the end of the tenancy it becomes more difficult for the Residential Tenancy Branch to grant them permission to retain all or part of the damage deposit. Tenants signing the document benefits both parties. It benefits the tenant as they have the opportunity to write on the report why they disagree with it. It benefits the Landlord by showing the Residential Tenancy Branch they have completed the process correctly and have not violated their tenants rights during this process.
One other key factor both parties often misunderstand about returning deposits is, when the parties disagree with the inspection and the landlord files for a hearing, the Landlord is not required to return any of the deposit until after the hearing has completed. This also means the Landlord may not use any of those funds to pay for repairs at the property until after the hearing.
I always encourage both parties to accept some responsibility and reach an agreement that both can accept to end the process. Arguing over $50 for not cleaning carpets, a stove or a broken light fixture will take more time and effort than agreeing on a lesser amount with each party taking a small loss to complete the process.
Managing your rental property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Stage three of a Tenancy - Ending the Tenancy
An end to a tenancy can occur for many reasons, tenants choose to vacate the property, a fixed term lease expires requiring tenants to vacate, a Landlord can request a tenant vacate for personal use and there are many other reasons tenancies may end. Here we will speak to the process and steps owners and tenants should follow.
When a tenant provides notice to end the tenancy they are required to provide one calendar months notice to end the tenancy. If a tenant wants to vacate the property at the end of August they must provide in writing to the Landlord or their agent a notice to end the tenancy on July 31st before 11:59:59pm. If the notice is received after that time the tenant could be held responsible for rent for the month of August.
If a Landlord provides notice to end the tenancy for personal use, they are required to provide two months notice and compensate tenants for the equivalent amount of one months rent. Normally this compensation would be in the form of not charging the last month’s rent owed by the tenant.
After notice has been provided by either party there are multiple steps both parties must take before the tenancy has ended.
A tenant is permitted to remain in the property until 1pm on the last day of the month for which the notice was provided. If the notice was to vacate at the end of July they would be allowed to stay until 1pm on August 31st. Tenants have until that time to clean the unit, repair damage, move their items from the property and return the keys.
What does this mean for the Landlord? It means if you have new tenants moving into the unit, 1pm on August 31st would be the earliest time anyone else could take possession of the property. It also means you should schedule the move out inspection after this time, unless a different agreed upon time is arranged.
A move out inspection is required and both the tenant and Landlord must attend. If either party fails to attend it could affect their rights to the pet and damage deposits or other costs associated with the tenancy. Landlords have an obligation to give the tenant two opportunities to schedule the move out inspection. Both parties can agree on the time and date of the inspection, as mentioned it should normally occur after 1pm on the last day of the month. Occasionally, tenants vacate early and the inspection can be performed at a different time.
Landlords should provide the tenant in writing confirmation of the time and date of the inspection. When performing the inspection Landlords should bring the original completed move in inspection report for both parties to compare the move in and move out condition of the property. After the inspection is completed Landlords are required to return the pet/damage deposits to the tenants within 15 days of the end of the tenancy. Failure to return the deposit in this time gives a tenant permission to ask for twice the amount of the deposit to be refunded. A tenant has an obligation to provide a forwarding address when vacating the property to the Landlord in order to receive the pet/damage deposits.
A tenancy doesn’t fully end until the deposits have been returned to the tenant, and the Landlord can close their file. We will discuss damage deposits in more detail in our next post.
Managing your rental property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Mutual Agreement to end Tenancy
There are many ways to end a tenancy, one overlooked option is the mutual agreement to end tenancy. A mutual agreement to end the tenancy is simply an agreement between the Landlord and Tenant to end the tenancy on a specific date.
When should this agreement be considered? It may be used when a tenancy is frustrated and both parties are unable to agree how to correct the disagreement. I have used it in the past when a tenant obtained a pet without permission from the Landlord, which was in violation of the tenancy agreement. The tenant wanted to keep their pet, which required them to find a different rental and they agreed to move out at a mutually agreed upon date. The tenant found a new place to live and the owner was able to have the property back to rent to a new tenant without a pet.
I recently attended a Residential Tenancy Branch hearing where an owner had submitted a request to terminate the tenancy due to damage to the property. The moderator started with asking if both parties would consider the option of mutually ending the tenancy instead of going to a judgement. The Landlord and tenant were able to reach an agreement on a date when the tenant would move out.
There are benefits for both parties to mutually agree on the end of the tenancy. Tenants know they have time to look for alternative living accommodations. Landlords are able to plan for when the tenants vacate the unit. If the unit needs repairs or updating they can begin to make arrangements to have that completed as soon as the tenants vacate. Landlords are able to begin searching for a new tenant knowing when the current tenancy will end.
A benefit of the mutual agreement is it is a less adversarial process and both parties know the end is coming, reducing tension between the two parties. If you have frustrated tenancy consider approaching the tenants, or Landlords and mutually agree to move on.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Receiving Applications from Tenants.
Being a Landlord requires performing your due diligence at every stage of the tenancy process. One of the early steps is the application form submitted by prospective tenants. Recently I reviewed an owner’s application who is self managing their property. The application form failed to request some basic information required to make an informed decision on prospective tenants.
An application should ask for the current address with unit number if apartment, condo or townhouse. Employer information including address, phone number, name of supervisor and their position in the company. Asking for more details provides the opportunity to perform some background research before contacting previous landlords or employers.
I was recently asked how I know if the person listed on the application is really the supervisor or manager of the potential tenant. The number they give could be the person’s cell phone number and not a work number of the business. There are many tools online to confirm the address and phone numbers of a business before contacting the employer. I always research the employer and call the main number to confirm the person listed as the supervisor is an employee of the company and the supervisor of the applicant.
Recently I received an application from some applicants which included a person indicating they worked for a specific company. The address of the business on the application was correct. When I called the company they were not familiar with the employee or the supervisor identified on the application. It was clear the information provided by the applicant was inaccurate and I advised my client to not accept the applicant.
Another applicant supplied an address where they lived, without supplying the unit number. When I asked the Landlord which unit they lived in they indicated it was a Strata property and they owned just the one unit. I had already researched the building address online and identified the building was a “rental apartment building”, not a Strata Corporation which meant the applicant had provided inaccurate information. Again I informed my client to not accept the applicants.
When you have the right information it is easier to make an informed decision on potential applicants. Making a wrong decision in the beginning can be very costly for Landlords when they attempt to have the tenant vacated from the property.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Should the BC government change the Strata Property Act allowing owners to rent a portion of the strata lot?
BC governments often comment on the affordability housing crisis especially in Vancouver. A small change to the Strata Property Act could make renting more affordable. A recent CRT decision VIS5602 vs Copeland, to uphold a Strata Corporation fines against an owner who’s daughter was residing in her strata lot and then had a “roommate, friend or companion” move in with her is part of the affordability issue.
Many Strata Corporations have bylaws prohibiting the renting of “part of the strata lot”. Some people have units with more than one bedroom which is not being used and could be rented by the owner. Governments are always looking for ways to reduce the cost of renting for tenants. One way to make it more affordable is to restrict Strata Corporation’s right to prevent a person from renting “a portion of their strata lot”. Many Strata Corporations have bylaws preventing owners from renting a portion of their strata lot, similar to the VIS 5602 Bylaw which reads “that an owner, tenant or occupant must not rent less than all of a strata lot.”
If an owner has a two bedroom condo or townhouse and they are willing to rent to a roommate should they be allowed? If the owner resides in the unit why should they be prohibited from renting their spare bedroom. The wording of the bylaw in the recent CRT case could be applied if an owner had a friend, brother or sister move in with them as a roommate, the owner would be in violation of renting less than all of the strata lot. The interesting part of the CRT case is the adjudicator used definitions from the Residential Tenancy Act to define their argument of what rent and a tenant is. Section four of the residential tenancy act outlines what the act does not apply to. It states the Residential Tenancy Act doesn't manage a “living accommodation in which the tenant shares bathroom or kitchen facilities with the owner of that accommodation” If the Residential Tenancy Act doesn’t recognize these situations, is it a “rental”?.
Many Strata Corporations have similar bylaws like the one in this CRT case effectively prohibiting a “roommate” type situation even when an owner resides in the property. The government should amend the Strata Property Act prohibiting bylaws preventing an owner from renting a portion of their strata lot, when they reside at the unit. This would increase the amount of rental stock available reducing costs of renting and making housing more affordable.
Moving forward after 2020 this could have a larger impact for renting and housing affordability in all municipalities. If work changes and employers continue to allow workers to work remotely they may need more space for a home office, and may choose to relocate to a less densified area. Will downtown Vancouver become less expensive to rent or own than the suburbs due to demand based on the size of the properties. Some companies have indicated altering wages based on employees who work from home. If wages change will owners be able to afford to live in their current spaces, would renting the spare room help with the cost of living.
I have already encountered potential tenants moving from the city to the suburbs for a larger space for comparable rent due to employers allowing them to work remotely. If that trend continues owners in larger cities may need to offset loss of income to continue to afford their current cost of living. Will Strata Corporations allow owners to rent “portions” of their strata lot under hardship claims if their income has changed.
The rental housing market may change drastically in the near future, due to technology and how efficient business has operated during these times and employees' unwillingness to commute for work.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
https://decisions.civilresolutionbc.ca/crt/sd/en/item/487216/index.do