"Just until we find a place."

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 renter’s 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

ROMS BC's Outstanding Customer Service Award

Too good to be true?!

You advertised your soon-to-be-vacant suite on Craigslist. Today you got some really great news! A person e-mailed you, saying your suite is exactly what she is looking for however, as she is currently attending university in England, she can’t see the suite but wants to rent it for sure. Because you can’t meet each other first, she is prepared to pay you $100 more than you are asking, plus three months’ rent in advance. She will make her recent bursary cheque - issued by the university - payable to you, so you know her payment is valid. A small detail: the cheque is for 4000 pounds, the equivalent of about $7600, so could you please mail her a cheque for the difference.

This is one of countless variations on the same theme; it’s a scam! A potential renter doesn’t live in your city – usually the person is somewhere in Europe – is moving soon and your place is perfect! The person wants to send you a money order, cashier’s cheque, cheque from an institution or government, (etc.) which invariably is for considerably more than the generous amount the person is willing to pay you.

Of course the document will prove to be bogus, but by the time you find out, you will already have sent the “change.” The old adage applies to the rental industry as it does to every other walk of life: if it seems too good to be true, it is!

-- LandlordMentor

Pay for my tenants possessions?!

Q. Last week there was a sewer backup into the basement suite I rent. There was a lot of damage to the suite; enough to file an insurance claim. Our renters’ furniture and some other possessions were also damaged and they want to be compensated. Is that part of my claim to my insurance company?

A. No! Your insurance policy covers only your losses, not those of a third party. Your renters should have renters’ insurance. It usually costs less than $25 a month and also insures them against third party liability and any loss or damage to their property wherever it happens. In any event, you are not responsible to pay for their loss. That is clearly covered in the ROMS BC tenancy agreement, and supported by many court cases and dispute resolution decisions.

-- LandlordMentor

"Damage" Deposit

Q. I know I can collect a half month’s damage deposit that goes toward any damage caused to the suite. Renters lose keys, so can I collect a $50 key deposit? Also, I want a deposit in case any cheques bounce. How much do you recommend I collect?

A. Whoa! Let’s go back to basics. First, the Residential Tenancy Act uses the term "security deposit" not "damage deposit" – and for good reason. A security deposit is defined as the renter’s money on deposit with the landlord against any obligation the renter may have at the end of the tenancy. That includes lost keys, late rent fees, NSF charges, or anything else that costs money and is the renter’s responsibility.

And when you request a security deposit, you cannot collect more than one half month’s rent. Having said that, if you allow pets, you can require an additional half month’s rent as a pet damage deposit. This is intended to protect you against any damage specifically caused by the pet(s).

-- LandlordMentor

"If it ain't in writing, it don't exist!"

Everyone has heard LandlordMentor say this 100 times before (including his wife, who doesn't like his improper English!), but it’s an important saying regardless. This industry is built on a paper foundation and it’s important to realize that even if you have a great relationship with your tenants, most of the time you need to communicate in writing. Many people will remember the day when you signed up a tenant over a cup of coffee and a hand shake, but unfortunately those days are gone.

For almost every situation you have with your tenant, there will be a form you will need to fill out, serve, photocopy and file. It sounds like a lot of work; but it really isn't and it's well worth your time.

The most classic example of an unused form is the Caution Notice. It isn't a necessary form, but it's much easier than drafting a letter! For instance, one of your tenants has a loud party and the neighbouring tenants complain that the smoke from the party came into their unit - though it is a non-smoking building as per all tenancy agreements. You - being the "nice guy" who likes all your tenants - go to your partying tenants and politely tell them that they should keep the noise down and ensure no one smokes on the property. A week later it happens again, but this time you are not in town so you send them a text message asking them to be more careful, because this is strike two. Two weeks after the first event, the disturbed tenants tell you that the others have had yet another loud party and it is keeping up them, and the smoke is coming in the window of their new born baby's room. They also tell you that they may have to look into moving to a quieter apartment. You are starting to take this seriously, so you send the louder tenants a strongly worded email telling them that the parties and the smoking have got to stop. While you are on the computer, you make sure that they get the message by commenting on their Facebook page. Four weeks have passed from the original incident and you receive a letter from your complaining tenants. The letter explains that they really like you and the apartment, but they can’t handle the noise and the smoke and they are ending their tenancy. You now want to evict the noisy, smoky tenants but you can’t because you have not given them any formal warning - which needs to be completed before a 1 Month Notice to End Tenancy for a breach of material term can be served. This mess could go on for many more months and in the end, it is a possibility that you may not get the noisy tenants out.

How could this have been handled better? Could you have saved your good tenants?

The answer is yes, of course, and it would have been a lot easier than everything you have already done. This exact situation occurred with one of our well informed members and they dealt with it quite differently: Their tenant had a loud party and the neighbouring tenants complain that the noise kept them up all night and marijuana smoke entered their unit. Being another nice guy who likes all of their tenants, they go over to their noisy tenants and politely tell them that they should keep the noise down. They also serve a Caution Notice for the incident. By serving the Caution Notice, the noisy, smoky tenants are aware that this is serious. The notice is official and it states that if the issue is not corrected, the landlord could end their tenancy. The Caution Notice scared the noisy tenants and now they party at a friend’s house and the issue is resolved. If the Caution Notice no longer deters these party fiends and they have another disturbing, smoky party, then a 1 Month Notice to End Tenancy could be served immediately.

What’s the difference? Paper. Verbal conversations, email messages, text message, Facebook, Twitter and telepathy all count as nothing in the grand scheme of residential tenancy. If you’re unsure whether or not something should be done on paper, do it on paper and serve it properly to be sure. As everybody's Mama says, "better safe than sorry!"

-- Staff and AdviserToTheAdvisers