Landlord and Tenant Rental Update with LandlordBC

What has changed?

The primary difference is that instead of serving a 4 Month Notice to End Tenancy which tenants can, and often do, dispute landlords will not have to apply for an order of possession through the RTB’s Dispute Resolution process in advance. The order of possession will be effective four months after is it served.

 Prolong and Sustain

To qualify for this form of end of tenancy a landlord must show that the work is necessary to prolong and sustain the rental unit.

Seismic Upgrades / Updating Electric Wiring to Code / Replacing Sprinkler System to Meet Code

 Only Reasonable Method

Landlords must be able to demonstrate that the only way this work can be completed is with the rental unit being vacant.

Unsafe for Residents / Prolonged Loss of a Service or Facility

 Serving Documents Via Email

Using Email as A Method of Service

  • · Landlords and tenants should document that both parties have provided an email address and that it can be used as a method of service. It is important to note that even if a landlord has received a tenant’s email in the past there still needs to be documentation that it may be used as a method of service.
  • · Residential Tenancy Branch has created a form to document this agreement. We will also be updating our residential Tenancy Agreement to allow landlords and tenants to provide their email address as a method of service at the beginning of a tenancy. Both landlords and tenants can withhold consent to using email as a method service.

Additional Rent Increases

Rent Increases

During a tenancy landlords may increase rent once as frequently as every 12 months period by an amount permitted by law. For the Rent Increase to be valid landlords must use the approved form and give the tenant three full months’ notice. Between tenancies landlords may set rent to market value.


Additional Rent Increases

A landlord may apply for a rent increase that is greater than the regular annual rent increase in the circumstances set out in the regulations.

 Apply?

Additional rent increases are granted by an arbitrator through what the RTB’s Dispute Resolution process. A conference call hearing is convened with an opportunity for both the landlord and tenants to speak and present evidence.

 Capital Expenditures

A landlord that has incurred capital expenditures may apply for an Additional Rent Increase. There are eligibility requirements these expenditures must meet to be considered.

 Eligibility Criteria - Timing

These expenditures must not be expected to recur for at least 5 years and need to have incurred in the 18-month period leading up to the date the application is made.

 Eligibility Criteria - The Work

Install, Repair, Replace - Major Component / Major System

  • · To maintain the property in a state of repair that complies with the RTA
  • · That has failed or is malfunctioning or inoperative.
  • · That is close to the end of its useful life.
  • · That reduces energy use or greenhouse gas emissions.
  • · That improves the security of the residential property.

 Eligibility Criteria - Examples

Foundation / Walls / Beams / Columns / Roofing Siding / Entry doors / Windows / Primary flooring in common areas / Pavement in parking facilities / Electrical wiring / Heating systems / Plumbing / Sanitary systems / Security systems / Elevators

 How to apply - The fee

$300 + $10 for each affected unit. All affected units must be included on a single application. Maximum $600

 Formula for an increase

    Total ARI = (eligible capital expenditures) / (number of specified dwelling units                                                 

120

   

The increase - CAP

The increase will be presented in dollar value which can be applied to each tenancy. The increase may be spread over three years with a cap of three percent per year.

 The increase - Three Years

If the increase is $100 and the rent is $1000 the increases will roll out like this.



ARI TOTAL

RENT

3% ARI increase

Year one

$100

$1000

$30

Year two

$70

$1030

$30.90

Year three

$39.10

$1060.90

$31.87

Unapplied ARI

$7.23

$1092.77


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