We've recently had many questions regarding making an application to retain a security deposit through dispute resolution. As most of you know if you have a debt that is equal to or higher than the amount of the security deposit, the landlord is to apply to retain the deposit and hold on to it until the dispute resolution officer tells them to keep it to apply towards the debt, or to release it back to the tenant. But what if the debt is less than the security deposit?
Section 38(4) of the Residential Tenancy Act states, in part, "A landlord may retain an amount from a security or pet damage deposit if . . . (a DRO) orders that the landlord may retain the amount." Note the use of the word, "amount."
It is our interpretation that failing to return the portion of the security deposit that you do not have a claim against would entitle your tenant to double that amount, because only part of the deposit would have been dealt with within the fifteen days allowed.
--AdviserToTheAdvisers
Tuesday, December 15, 2009
Wednesday, December 2, 2009
Behind on rent increases?
Q. My great renter has been on a disability pension for the last six years so I haven’t increased the rent. I recently learned that he now has a good job with the government, so would like to increase the rent. I’ve done some research and learned that BC’s rent controls limited increases to 3.7%, 3.7%, 4.0%, 4.0% and 3.8% in the last five years respectively. That’s a cumulative increase of 20.7% which is just the right amount I need to get the rent back to market rate. Do I have to use a special form to increase by this amount?
A. There is no special form because you can’t do this! The simple answer regarding rent increases is, “use it or lose it.” You are permitted to increase rents by the rent control limit once every twelve months. If – for whatever reason – you choose not to raise the rent in any given year, you cannot carry the foregone increase into a future year. Even though you haven’t raised the rent for six years, you can only raise it by 3.2 % in 2010 .
--LandlordMentor
A. There is no special form because you can’t do this! The simple answer regarding rent increases is, “use it or lose it.” You are permitted to increase rents by the rent control limit once every twelve months. If – for whatever reason – you choose not to raise the rent in any given year, you cannot carry the foregone increase into a future year. Even though you haven’t raised the rent for six years, you can only raise it by 3.2 % in 2010 .
--LandlordMentor
Monday, November 23, 2009
Extra guests, or occupants?
Q. A few months ago I rented my unit to a nice young couple. There have been no problems until last weekend when I received complaints from two neighbours about screaming and yelling that went on most of the night. I went to talk to them, and a stranger met me at the door. He said he was one of my renters' cousins and he and his girlfriend were staying with his cousin – “just until we find a place.” From glancing at all the furniture and other things inside the unit, I don’t think they are there temporarily, plus I spoke to one of the neighbours who said they had been there for several weeks. What can I do?
A. If you used the ROMS BC Tenancy Agreement, there is a very strong clause that states no additional persons can occupy the unit without your prior written consent and further, that after 14 cumulative days in a calendar year, a “guest” becomes an occupant. You can give your renters a letter requiring the “cousin” and his girlfriend to leave. If they don't you can issue a Notice to End Tenancy for breach of a material term of the tenancy agreement.
However, if you are using the government tenancy agreement form or some other agreement that doesn’t contain an “unauthorized occupants” clause, there’s very little you can do – you might be able to establish that four people is an unreasonable number of occupants (if the unit is a small, one bedroom suite) or persuade your renters to require the occupants to move, but if they don’t agree, you might be stuck with all four of them for the long term!
-- LandlordMentor
A. If you used the ROMS BC Tenancy Agreement, there is a very strong clause that states no additional persons can occupy the unit without your prior written consent and further, that after 14 cumulative days in a calendar year, a “guest” becomes an occupant. You can give your renters a letter requiring the “cousin” and his girlfriend to leave. If they don't you can issue a Notice to End Tenancy for breach of a material term of the tenancy agreement.
However, if you are using the government tenancy agreement form or some other agreement that doesn’t contain an “unauthorized occupants” clause, there’s very little you can do – you might be able to establish that four people is an unreasonable number of occupants (if the unit is a small, one bedroom suite) or persuade your renters to require the occupants to move, but if they don’t agree, you might be stuck with all four of them for the long term!
-- LandlordMentor
Thursday, October 15, 2009
No more pet; now what?
You agreed to rent to a couple with a dog and you collected a half month’s rent as a pet damage deposit, as permitted by the Residential Tenancy Act. Yesterday, your renters told you their dog died; they aren’t going to have any more pets, therefore they want their pet damage deposit returned. You can agree to return it, but you are permitted to keep it until the end of the tenancy along with the security deposit. The latter makes sense because it is only when the unit is empty that you will know for sure whether Fluffy did any damage to the carpet or walls.
-- LandlordMentor
Friday, October 2, 2009
Deposit for rent?
Q. A few weeks ago my renters gave written notice they are leaving the end of this month. Yesterday they came with a cheque for half this month’s rent, saying I could keep the security deposit against the other half. This doesn’t seem right; now I have no security against anything they might owe me once they move out. Should I have taken the half month’s rent?
A. Yes, you should have taken the half month’s rent, however that’s not all of the answer... The Residential Tenancy Act specifically prohibits a renter from applying the security deposit to the last month’s rent, unless the landlord agrees. So let your renters know that fact; hopefully the rest of the rent will quickly be paid. If they don’t pay it you can issue a 10 day Notice to End Tenancy for Non Payment of Rent, and even apply for an Order of Possession. However, at best that Order would be effective close to the end of the month, so you wouldn’t gain much. Unfortunately, there’s no "quicker" answer to this question.
-- LandlordMentor
A. Yes, you should have taken the half month’s rent, however that’s not all of the answer... The Residential Tenancy Act specifically prohibits a renter from applying the security deposit to the last month’s rent, unless the landlord agrees. So let your renters know that fact; hopefully the rest of the rent will quickly be paid. If they don’t pay it you can issue a 10 day Notice to End Tenancy for Non Payment of Rent, and even apply for an Order of Possession. However, at best that Order would be effective close to the end of the month, so you wouldn’t gain much. Unfortunately, there’s no "quicker" answer to this question.
-- LandlordMentor
Thursday, September 24, 2009
Where do I send the deposit?
Your outgoing renters left three days early; you weren’t able to schedule a move-out inspection. The law says you have to return their security deposit, get the renters’ agreement in writing to keep some or all of it, or file for dispute resolution to claim against the deposit, but you don’t know where they are so you can’t do any of these.
You don’t have to do anything! It’s up to the renters to provide you with their forwarding address in writing. Once you receive it, then you have 15 days to take one of the above three steps. If you don’t receive their forwarding address within one year, the deposit is forfeited to you.
-- LandlordMentor
Tuesday, September 15, 2009
"Security" deposit, not "damage" deposit
Your outgoing renters damaged a cupboard door. You said you would keep $150 from their security deposit to cover the repair costs. They said you can’t do that. They are right!
Landlords need to understand that security deposits are just that – deposits of the renters’ money with the landlord. If you had a $350 security deposit and you applied $150 to damage done during the tenancy, this means you only have $200 left at the end of the tenancy to apply to lost rent, damages to the suite, liquidated damages, unpaid utilities - you name it!
At the end of a tenancy the landlord must either return the deposit in full, get the renters’ agreement in writing to keep some or all of it, or file for dispute resolution to claim against the deposit for money owed. (Never apply to keep the deposit before the tenancy is over!)
-- LandlordMentor & AdviserToTheAdvisers
Tuesday, September 1, 2009
Another bill?!
Surprise! You just received an invoice for $115 for a plumber to unplug a toilet in your rental unit. Do you pay it?
Because your renters didn’t notify you of the problem and give you a chance to fix it or call your own plumber, your renters are responsible for paying this bill. (Incidentally, don’t use that plumber; s/he should have contacted you to determine whether to invoice you or the renters.)
-- LandlordMentor
Because your renters didn’t notify you of the problem and give you a chance to fix it or call your own plumber, your renters are responsible for paying this bill. (Incidentally, don’t use that plumber; s/he should have contacted you to determine whether to invoice you or the renters.)
-- LandlordMentor
Thursday, July 30, 2009
An easier way to show your suite
Your renters are moving; you want to show your suite to prospects. First, try to agree with your renters on blocks of time, e.g. 2 to 5 hours, 3 to 4 days a week. Confirm the agreed times in writing or by e-mail. If no agreement is reached, give your renters written notice that you will restrict the showing to within 3 to 4 blocks of time per week. 24 hours after receiving it, the notice is effective for 30 days; you don’t have to inform them in advance of each showing.
-- LandlordMentor
Thursday, June 11, 2009
Lower Rent?
It’s not something you hear about in the news, but Landlords have hearts too! With the current economic downturn, people are facing a scary world that threatens our basic needs. People are forced to choose between shelter and food or paying the gas bill, and landlords are not immune to this either. Most have normal day jobs that are just as fragile as everyone else's, but some are in a position to help where they can. Tenants are asking for rent reductions, generally for a couple of months while they get back on their feet. It is not expected that every landlord should reduce their rents, but there are some who can and will. The question is not whether or not you should do this; it's up to each individual landlord. This is something that only you can decide, but how to properly help these people without permanently affecting your income is something to be cautious of.
Should you find that you are willing and able to do what you can to help, be sure to adhere to these rules. In a perfect world, you could just tell your tenant that they can pay $100 less for three months, shake hands, and in three months you would have your standard rent again, but unfortunately this isn’t the case. Its not a perfect world; it’s a paper world that has correct procedures and regulations, but its surprisingly easy and quick to help out your tenants. The easiest method is to offer a "rent rebate." In this case, the tenant pays you the whole amount of their rent, and you pay them back the amount you choose. By using this method the rent paid is still the original amount, thus eliminating you being stuck with low rent in the future.
-- Staff and AdviserToTheAdvisers
Should you find that you are willing and able to do what you can to help, be sure to adhere to these rules. In a perfect world, you could just tell your tenant that they can pay $100 less for three months, shake hands, and in three months you would have your standard rent again, but unfortunately this isn’t the case. Its not a perfect world; it’s a paper world that has correct procedures and regulations, but its surprisingly easy and quick to help out your tenants. The easiest method is to offer a "rent rebate." In this case, the tenant pays you the whole amount of their rent, and you pay them back the amount you choose. By using this method the rent paid is still the original amount, thus eliminating you being stuck with low rent in the future.
-- Staff and AdviserToTheAdvisers
Tuesday, March 31, 2009
Finding a new tenant...
Owner: When checking references on a tenancy applicant, how can I tell whether the previous landlord is legitimate or a friend of the tenant?
LandlordMentor: Ask this question: “Can you confirm the address (with postal code)?”
Owner: I held an open house for my vacant rental unit and eight different people came. How do I pick the right one?
LandlordMentor: You can’t! Open houses are for attracting purchasers, not renters. Schedule only one potential applicant, couple, (etc.) at a time so you can interview them during the showing, watch how they react to the unit, and listen to what they say.
Owner: I schedule suite showings and over half the people don’t show up.
LandlordMentor: When scheduling showings, tell your prospects to phone you about one hour before to confirm and tell them that if they don’t, you won’t show up.
Owner: I give out application forms to tenancy applicants and they either don’t return them or don’t answer all the questions.
LandlordMentor: The application stage is your best opportunity to learn about your potential tenants. Don’t give out the form; instead, sit down with your applicants right after the suite showing and interview them to get all the answers, filling out the form yourself, which they then read and sign.
LandlordMentor: Ask this question: “Can you confirm the address (with postal code)?”
Owner: I held an open house for my vacant rental unit and eight different people came. How do I pick the right one?
LandlordMentor: You can’t! Open houses are for attracting purchasers, not renters. Schedule only one potential applicant, couple, (etc.) at a time so you can interview them during the showing, watch how they react to the unit, and listen to what they say.
Owner: I schedule suite showings and over half the people don’t show up.
LandlordMentor: When scheduling showings, tell your prospects to phone you about one hour before to confirm and tell them that if they don’t, you won’t show up.
Owner: I give out application forms to tenancy applicants and they either don’t return them or don’t answer all the questions.
LandlordMentor: The application stage is your best opportunity to learn about your potential tenants. Don’t give out the form; instead, sit down with your applicants right after the suite showing and interview them to get all the answers, filling out the form yourself, which they then read and sign.
Monday, March 9, 2009
"Green" Apartment Living
Living an apartment does not always lend itself to a green lifestyle. Rules and regulation with large buildings often prevent people from making those decisions that might be beneficial to the environment, but landlords can do their part and make life a little bit easier without much strain on themselves and the building:
1. Many people like to bike to work, but most don’t have a place to store their bicycle. Bringing bikes into apartment units can track in dirt and take up space, and most buildings don’t want bikes left in the hallway or in patio areas. A simple solution is to have a designated bicycle storage area on the main floor or outside. Bikes don’t take up a lot of space and tenants are still responsible for the security of their own bike.
2. Most apartment buildings have at least one garbage can in the entry common area, but few make the effort to put in a recycling bin as well. If there is a recycling bin at the entrance to your building, it will hopefully encourage your tenants to be "green" as well as reduce the amount of garbage you have to deal with.
3. The Cancer Society, Saint Vincent De Paul and Big Brother Big Sister all pick up donations of clothes and household goods, making it simple to have your clothes re- used by people less fortunate. Living in an large building puts a bit of a "kink" in the system as bags of clothing in a common area will become unsightly. A way to solve this problem and promote donations is to designate one day every couple of months that is designated as a "donation day" for a specific cause.
4. Many apartment buildings don't have space for a standard composter, but that doesn't mean your tenants can't take part! The first option for composting in small units is called vermi composting, and yes - it is a bin of worms! This is becoming more and more popular as the bins don't take up much space and it is a very fast way to turn your organic waste into rich soil. The second option is simple; you need a bucket, soil and oxygen... All you will need to do is put two or three tablespoons of rich, moist soil into your bucket, and you are ready to compost! If you choose to compost only natural waste (vegetables, fruit and coffee and tea grinds), simply mix the contents of the bucket (gently) and you will eventually end up with a scent-free compost under your sink.
For more tips and ideas, watch for April/May's "Green" Top Storey.
-- Staff and AdviserToTheAdvisers
1. Many people like to bike to work, but most don’t have a place to store their bicycle. Bringing bikes into apartment units can track in dirt and take up space, and most buildings don’t want bikes left in the hallway or in patio areas. A simple solution is to have a designated bicycle storage area on the main floor or outside. Bikes don’t take up a lot of space and tenants are still responsible for the security of their own bike.
2. Most apartment buildings have at least one garbage can in the entry common area, but few make the effort to put in a recycling bin as well. If there is a recycling bin at the entrance to your building, it will hopefully encourage your tenants to be "green" as well as reduce the amount of garbage you have to deal with.
3. The Cancer Society, Saint Vincent De Paul and Big Brother Big Sister all pick up donations of clothes and household goods, making it simple to have your clothes re- used by people less fortunate. Living in an large building puts a bit of a "kink" in the system as bags of clothing in a common area will become unsightly. A way to solve this problem and promote donations is to designate one day every couple of months that is designated as a "donation day" for a specific cause.
4. Many apartment buildings don't have space for a standard composter, but that doesn't mean your tenants can't take part! The first option for composting in small units is called vermi composting, and yes - it is a bin of worms! This is becoming more and more popular as the bins don't take up much space and it is a very fast way to turn your organic waste into rich soil. The second option is simple; you need a bucket, soil and oxygen... All you will need to do is put two or three tablespoons of rich, moist soil into your bucket, and you are ready to compost! If you choose to compost only natural waste (vegetables, fruit and coffee and tea grinds), simply mix the contents of the bucket (gently) and you will eventually end up with a scent-free compost under your sink.
For more tips and ideas, watch for April/May's "Green" Top Storey.
-- Staff and AdviserToTheAdvisers
Monday, February 2, 2009
No Hearing = Order of Possession
Hooray! No more waiting two to three months to evict the tenant who chooses not to pay the rent. If a tenant doesn’t pay the full rent within five days after receiving a (new!) 10 day Notice to End Tenancy, the landlord can apply for a “Direct Request” Order of Possession. The landlord must submit certain documents that will be reviewed by a Dispute Resolution Officer, who will then issue an Order of Possession in a couple of days, with no hearing being held.
-- LandlordMentor
Friday, January 23, 2009
Think You Can Top These?
Following are actual excuses that landlords have received for not paying the rent.
"I apologize; in an absent minded moment (and I have had plenty lately), I mailed 3/4 of my bills last month without stamps. I'm not even sure if they're the correct stamps. I hope I can get my act together next month! I'm also sorry I haven't called you. I don't get home from work until after 8 and it’s usually closer to 11."
"I can't even sleep. My dogs are keeping half the neighborhood up every night. How am I supposed to keep a job if I can't sleep?"
"I just found out you own this house free and clear! You've been profiting off me all this time?!"
"My previous landlord found me. He made me make a payment towards my balance."
"Do you co-operate with credit counseling to lower my monthly payment?"
"Carl got arrested and moved out. I hope you don't expect me to pay his share too."
"I had this nightmare... This house is giving me a bad feeling. I think it's haunted."
"I've been trying to call you all day so you can come and pick up the rent monies, but there was no answer so I spent it."
"My husband accidentally dropped a lotion bottle in the toilet. He and the plumber had the toilet on the front lawn until my husband, who is a chef, got out the bottle with his long fork. So we paid a plumber $135 to have a chef fix the toilet."
"We ran out of blue envelopes."
"I don't have the rent money, but I ordered a pizza to be delivered to your family."
"I didn't get my child support check and I think your former tenant stole it. I
"My wife's mother is sick, and if she dies, I'll have it all next week."
"A car hit the house and made our food go bad."
"The mailbox is broken."
Even if this not-so-wonderful situation has occurred in your life, I still hope you can have a chuckle at these. Do you think you can top these? Post, and we'll find out!
--AdviserToTheAdvisers
Friday, January 16, 2009
“I am putting my house up for sale. How do I evict the tenants?”
You don’t! From your tenants’ perspective, why should they lose their home because you plan to sell the building? IF you have a clean purchase sale agreement, i.e. all conditions and subjects to removed, and IF the purchaser plans in good faith to move in to the house or the unit occupied by your tenants and IF the purchaser requests in writing that you do so, only THEN can you issue a two months notice to end tenancy for landlord occupancy.
-- LandlordMentor
-- LandlordMentor
Monday, January 5, 2009
Welcome!
Welcome to our blog – information for and dialogue among BC’s residential landlords. What question do you have? What’s your pet peeve as a landlord? How do you find – and keep – good renters?
LandlordMentor and AdviserToTheAdvisers have many answers and – like any good mentors or advisors – are always learning more.
Who is LandlordMentor? He is CEO of the Rental Owners and Managers Society of BC for 11 years, previously corporate real estate executive, labour negotiator, human resources professional and – in the dark ages – RCMP Officer.
Who is AdviserToTheAdvisers? She is the Member Service Manager, in the service industry for nearly 10 years, who is in charge of all advice and service that leaves the ROMS BC office.
"Can I pay you on the 23rd? I just bought a new laptop and it cost a little more than I thought. Sorry."
"Man, is it a new month already? Wow."
Do you have to put up with these excuses – and the more creative ones? In a word, NO! Rent is due on the first of the month; that doesn’t mean the second! You can issue a Notice to End Tenancy on the second and your renter then has five calendar days to pay the full rent, or move out!
Want to learn more? Go to www.romsbc.com or post here.
Happy Day!
-- LandlordMentor
LandlordMentor and AdviserToTheAdvisers have many answers and – like any good mentors or advisors – are always learning more.
Who is LandlordMentor? He is CEO of the Rental Owners and Managers Society of BC for 11 years, previously corporate real estate executive, labour negotiator, human resources professional and – in the dark ages – RCMP Officer.
Who is AdviserToTheAdvisers? She is the Member Service Manager, in the service industry for nearly 10 years, who is in charge of all advice and service that leaves the ROMS BC office.
"Can I pay you on the 23rd? I just bought a new laptop and it cost a little more than I thought. Sorry."
"Man, is it a new month already? Wow."
Do you have to put up with these excuses – and the more creative ones? In a word, NO! Rent is due on the first of the month; that doesn’t mean the second! You can issue a Notice to End Tenancy on the second and your renter then has five calendar days to pay the full rent, or move out!
Want to learn more? Go to www.romsbc.com or post here.
Happy Day!
-- LandlordMentor
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