Stage three of the tenancy, the ending of a tenancy.
A tenancy can end in many ways, the most common is when the tenant provides notice to vacate the property. After a tenant provides notice there are steps the Landlord must take to complete the tenancy. Here we are going to talk about the move out inspection process.
Tenants are required to provide notice with specific details which include the following, Tenants name, Date, Address of the property, date they are leaving and their signature. This suggests the notice must be in writing, which in today's world can be by email, text or other electronic communication as well as pen and paper. The first thing a Landlord must do is acknowledge the tenants notice to vacate.
Many tenants today provide notice electronically through email, text msg or other technology. As a landlord it is important to reply to this message and respond identifying you have received the notice on the specified date acknowledging when it was received. This could be important if the notice is sent after a time frame when the notice should be provided. In BC your tenants are required to provide a full calendar month notice to vacate the property. If the notice is received after this specific time, you as the landlord may be entitled to unpaid rent for the next month as notice was not provided in the appropriate time frame.
After acknowledging to the tenants the notice is received the landlord is required to schedule a move out inspection to complete the move out report with the tenants. A Landlord must make at least two attempts to schedule the move out inspection. The Residential Tenancy Act in BC states tenants are required to vacate the property by 1pm on the last day of the tenancy. If the end of the month is June 30th then they must vacate by 1pm on June 30.
Send the tenants a letter, email or our preferred method a calendar invite to a meeting to complete the move out inspection scheduled for June 30 at 1pm. By sending the calendar invite the tenants can reply by accepting the invite, which means they have agreed to the time of the meeting, and you receive an electronic confirmation of their acceptance.
If they don’t accept the invite then you must make a second attempt to schedule a meeting for the move out. Often the original time which is set may be changed with both parties agreeing. Using the electronic communications provides a reply that can be used as confirmed communication for the move out inspection. Failing to meet or making two attempts may lead to concerns with the Residential Tenancy Branch if the situation ends up in a hearing. It would be viewed by the Residential Tenancy Branch as the landlord failing to meet their obligations.
What happens if the tenant doesn’t respond to the meeting requests or doesn't show up to the move out. The landlord should complete the report on that date they had arranged without the tenant present. On the move out form there are two important sections, one identifies the costs that a Landlord thinks the tenant should be responsible for, including damage and cleaning costs, replacement of lost key or fobs, and the tenant and landlord must agree or disagree this amount should be kept from the damage deposit. When there is a disagreement the Landlord must file with RTB within fifteen days to retain any portion of the damage deposit funds.
The other important section is where the tenant provides their forwarding address, which is required for them to provide if they want to receive the damage deposit. Tenants may provide the forwarding address in a different format, or after they left the property, and the landlord should enter it on the move out form when it is received.
When there is a dispute regarding the amount of deposit to be returned then the Landlord must file a claim with RTB to keep a portion or all of the deposit funds. The deposit must be returned or a claim filed within 15 days of the end of the tenancy when you have the tenant’s forwarding address. When a tenant emails their forwarding address on the tenth day after they left the property a Landlord has five days left to return it or file a claim. It would be beneficial to have the move out form completed to submit as evidence for your claim and not have to rush around to find the details in that short period of time. Failing to return the deposit within fifteen days could result in the tenant having the right to request double the deposit be returned.
When Cartref Properties receives a notice to vacate we acknowledge the notice, send a letter with our cleaning checklist which forms part of the tenancy agreement, expectations of how the property should be cleaned, and then send an invite to a meeting for the move out inspection. Missing these steps can result in difficulties with a hearing with the Residential Tenancy Branch.
Need assistance managing your rental property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
Do you have permission to rent?
Before renting a townhome or condo in a Strata Corporation you need to be sure you have permission from strata to rent. Permission can be granted in many forms, depending on who you are renting to. Where can an owner find the information about renting their property?
The first place to look is the Strata Corporation bylaws. If the bylaws don’t have a rental restriction bylaw, you would allowed to rent the property. The Strata Property Act allows some Strata Corporations to have a rental restriction bylaw preventing an owner from renting without council permission. The act also has provisions allowing owners exceptions to rent to certain types of people even when the Strata Corporation has a rental restriction bylaw.
When a rental restriction bylaws is present, owners are permitted to rent to “family members” as described in the Strata Property Regulations. The regulations define “Family Members “ to include the immediate family of the owners. Immediate family being spouses, parents or children of one of the owners. These regulations exclude siblings, uncles and cousins as they are not “immediate family”. Strata Corporations may also grant permission to rent the unit to an owner who requests a hardship exemption.
Another place to look is the form J for your property. In January of 2010 the Strata Property Act was amended requiring the developer to identify a specific time on the Form J, “rental disclosure statement” stating when the unit’s rental period expires. Many properties built after 2010 have a time frame over 100 years for an allowable rental. The time frame on the form J limits the strata corporation from incorporating a rental restriction bylaws before that date.
What happens when an owner doesn’t have permission to rent their strata lot and is in violation of a rental restriction bylaw? The Strata Corporation is in a position to identify the owner as being in contravention of the bylaws. If found to be in violation, they may impose fines up to the amount of $500. It could be determined that each day the unit is rented there is a contravention and it could be considered a continuous contravention of the bylaw which allows for a fine every 7 days.
Before you rent your strata lot clarify with your Strata Corporation if you have or need permission to rent. Start by reviewing your bylaws to see if there is a rental restriction bylaw, then review the strata property act and regulations, review your form J which would have been provided with your purchase documents. Speak to a professional if you are unsure.
Need assistance managing your rental property? contact us for an evaluation of your needs.
Cartref Properties specialises in managing rental units located within Strata Corporations.
www.cartrefproperties.com
My tenant has obtained a 2nd pet, what do I do?
Often tenants move into a rental property and then without discussing with the landlord the option of obtaining a pet. What both parties need to understand is that the tenancy agreement is a contract between two parties and when one party alters the agreement the other party may have a case to end the tenancy. In a case of the tenant who has one dog and the tenancy agreement clearly states they can only have one pet, and they choose to obtain another pet without permission, the Landlord has two choices. Landlords are allowed to restrict the number, size, and kind of pet that is allowed in the rental property.
Choice number one for the landlord is to allow the tenant to keep the second dog they have obtained. If this is the choice two things need to happen. First the tenant needs to be advised the tenancy agreement will be amended to include the second dog added to the agreement. The second thing is the landlord should inspect the property to see the current state of the property with one animal, to determine the current condition of the property. This is extremely important when the tenant obtains a pet when one is not permitted. When they obtain the second one this allows you to clarify with the tenant what the condition is to the tenant with only the one pet. Many landlords ask can I increase the pet deposit since they do not have two dogs. The maximum allowable pet deposit is half a month’s rent at the start of the tenancy and is not allowed to be increased based on the number of pets.
Choice number two is to not allow the additional pet. In that case the landlord needs to advise the tenant the second pet is prohibited in writing and provide the tenant with a time frame they must move the animal from the property. If the tenant fails to vacate the additional dog, the landlord has the right to seek an eviction of the tenant based on the grounds of a material breach of the tenancy agreement. Filing a claim with the RTB may cause the tenant to seek alternate housing and move out. It may irritate the tenant and they may choose to fight the eviction with the RTB. There is the possibility the RTB allows the tenant to keep the pet, due to the wording of the tenancy agreement or the time frame of when you found out about the pet. If you find out about the second dog and don’t act on the issues immediately and then six months later choose to try evicting the tenant, the RTB would question why you failed to take this action. They may indicate that by not acting immediately you have agreed to allow the second pet to reside at the property. It is important to react to any situation which is an alteration of the tenancy agreement.
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
Wear and Tear vs Damage?
When tenants are vacating a property it is important to follow the move out process steps. This includes completing the condition inspection report with the tenant at the time they move out. This form has a section at the bottom where both the landlord and the tenant sign off on the amount of deposit being kept due to damage to the property, or for unpaid rent and utilities.
Section 37 of the Residential Tenancy Act requires tenants to vacate the property and “leave the rental unit reasonably clean, and undamaged except for reasonable wear and tear, and “
The big question is what is reasonable wear and tear? Often the tenants' version of wear and tear doesn’t match the Landlords. When we move a tenant into the property we use the example of hanging a single picture frame on the wall. This will leave a pin hole in the wall which is not very visible. In today‘s market many people have TV’s that are hanging from the wall on a bracket. The requirements to hang a TV bracket are very different than a picture hanging hook. We describe the TV bracket as an example of damage to the wall in our opinion. TV brackets often require large screws into studs to hold the weight of the TV and leave significant damage to the wall.
In our experience it is often easier to accept some form of payment from the tenant for the damage even if it isn’t the entire cost of the repairs. If at the time of completing the condition inspection report you are not able to reach an agreement of the cost being kept from the tenant’s deposit, you must file with the RTB within 15 days to keep the funds. This means you don’t return any of the funds, and you are not allowed to use those funds to complete repairs until the RTB hearing which determines if you have the right to keep the deposit funds. It is possible the RTB decides you are asking for money which isn’t reasonable for the damages caused and they don’t approve you to keep the funds.
It is important to have a clear discussion with the tenants when vacating about what you anticipate the costs would be to repair the damage. If the wall needs painting and the tenants say paint only costs $30 per can of paint, you reply with yes, though I need to pay someone to come here to do the work. It costs an additional $200 minimum to have a person perform the work. Now you have a range from $30 to $230 to make a deal on the amount of the deposit you keep. In the end you both agree to meet in the middle at $115. This covers half your costs and the work can then be completed quickly and there is no further work with this tenant as you both are able to move on. In this case you are out $115. If you take the situation to RTB and they determine you are unreasonable in your request you may not be entitled to the entire $230 and you lose the cost of the filing fee, leaving you more than $115 out of pocket. Part of the RTB mandate is that the Landlord has the obligation to mitigate their loss when dealing with tenants. Taking the $115 is mitigating your loss.
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
When do I provide the keys to the rental unit?
The tenant selection process involves many steps. The final step is to hand over the keys to the tenant. When is the right time to hand over the keys?
The tenant selection process starts when the property is first advertised for rent, followed by showings to prospective tenants and screening of applicants for the property. All of these steps give you a glimpse into the person you are potentially renting to. During these interactions is when you read between the lines of what the person is saying and what they do? When a prospective tenant is late for a showing, this is showing disrespect for your time. If you ask for more details to be submitted with the application form and they are slow and or reluctant to assist you this is a sign they are not being truthful to who they are.
After completing your due diligence and you agree to select the applicants for the property you should draft the lease agreement and have them sign the paperwork. In BC as soon as they sign the tenancy agreement and provide the damage deposit you have entered into a contract with them for the property. It does not mean you must provide the keys at this time. It means the tenants have rights to the property, and if you changed your mind they may have recourse against you for breaking the agreement. We like to complete the lease signing and collection of the damage deposit before the move-in date. We find this holds the tenants responsible for the contract.
We sign the tenancy agreement and collect the damage deposit, then schedule a move-in inspection near the move-in date. At the move-in inspection we complete the condition inspection report with the tenants indicating the condition of the property. The condition inspection report has a section for how many keys you are providing to the tenant and should be indicated on the form. We then collect the first month’s rent. After we have the first month’s rent and they have signed the condition inspection form, then we hand over the keys.
I am surprised by stories of people who have handed over keys to people when the tenants have failed to pay a full damage deposit, the rent or completed the condition inspection report. Keys should never be provided without all three of those things being completed. The RTB standard agreement has a section where you indicate when the damage/pet deposit is due by. We always indicate the first day of the tenancy for the due date. If the deposit isn’t paid on this date tenants are not provided with the keys.
An applicant who fails to pay the damage deposit or miss the condition inspection report is likely to be a person you don’t want to be renting to.
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