You owe me more money?
Damage and Pet deposits are part of the process when renting a property in BC. Returning damage and pet deposits is often a situation which creates conflict between Landlords and Tenants. Both parties should be familiar with the requirements for damage and pet deposits at the start and during a tenancy.
Landlords are permitted to collect the equivalent of 50% of the first month’s rent for a damage and pet deposit from a tenant at the start of a tenancy. What this means is when the rental amount was $2000 a landlord would collect $1,000 for a damage deposit and $1,000 for a pet deposit.
One often misunderstood part of deposits is, the amount can’t change. Once the tenancy has started the amount collected by the landlord remains the same during the entire tenancy. Tenants may live in a property for multiple years where rent increased annually. If a landlord increases the rent they are unable to request a tenant increase the amount of damage or pet deposit they have already paid.
At the end of a tenancy Landlord’s are required to return the damage deposit to the tenant when no damage has been identified including interest payable. Since 2009 the amount of interest payable to tenants has been zero. This means any tenancy started after 2009 owners aren’t responsible for paying interest on the deposit money.
It’s important for owners and tenants to understand there are steps both parties must participate in before damage deposits are returned to tenants, which we will explore in a future post.
Looking for Property Management you can find more information about us at: www.cartrefproperties.com
What’s the Difference?
Why do Strata Corporations have Rules and Bylaws? All Strata Corporations will have bylaws when they are formed. The Strata Property Act has a set of standard bylaws which all strata Corporations begin with. The developer has the right to amend, add or change the bylaws before the property is developed. They can also create a set of rules.
Rules govern the use, safety and condition of common property shared by all owners.
This is the significant difference between Rules and Bylaws. Bylaws are created for the administration of the Strata Corporation. They are for management of all parts of the building including use and enjoyment of strata lots, maintenance of property and building assets. A rule would not be created to govern use of a strata lot.
Another difference for rules is enforcement. Rules and bylaws both have penalties a strata can apply. The strata Property act outlines limits for fines of rules and bylaws. The standard bylaws limit fines to $10 for a rule and $50 for a bylaw infraction. A strata may change these limits to be $50 for a rule and $200 for a bylaw. In order to apply the higher amounts the strata must have amended the standard bylaw.
One other important difference owners should be aware of is, council has the right to create a rule during the year without owners approval. Rules are often created for visitor parking, renting an amenity room, use of a fitness facility or other outdoor activities that could affect your tenants. It is important owners read council meeting minutes to identify if a new rule has been created and advise your tenants of any changes. If council creates a rule at the next General Meeting the rule must be ratified by the owners. If the rule is not ratified it ceases to exist.
Looking for Property Management you can find more information about us at: www.cartrefproperties.com
Fixed Term Lease
In 2017 the BC Provincial Government made a change to the Residential tenancy regulations regarding fixed term tenancies. Section 97.2 a.1 outlines when a fixed tenancy can include a term requiring a tenant to vacate the property at the end of the tenancy.
Before the change in 2017 a landlord could have a tenant sign a fixed term tenancy agreement which required the tenant to vacate the property at the end of the term. When rents are increasing a fixed term was used by landlords to increase rents beyond the allowable limits outlined by the government. Landlords would request tenants sign a new lease at a higher rate to continue residing at the property, or have tenants move out so landlords could rent to another tenant for a higher rate. The change in 2017 limits when a fixed term clause can be used. Section 13.1 of the residential tenancy regulations identifies two requirements for a fixed term clause. One the landlord must be an individual, second the person moving into the rental unit after the tenant vacates must be a close family member as defined in section 49 of the Residential Tenancy Act. A close family member is identified as a parent, spouse or child of the owner. Or the parent, child or spouse of the spouse of the owner.
If you have a fixed tenancy agreement and are an individual owner your tenant may have a right to not vacate the rental unit at the end of the fixed term. This prevents landlords from manipulating the tenancy to increase the rent above the allowable limits provided by the provincial government. Before signing a fixed term tenancy agreement with your tenants review these sections of the Residential Tenancy Act and Regulations to ensure you are in compliance.
Stage Two of a Tenancy
Renting your property involves many different tasks and processes. In a previous post we mentioned renting has three stages to the process. Today we will discuss stage two of renting your property.
Stage one of renting was the placement of your tenant. Stage two is managing the tenancy while the tenant occupies your property. Many Landlords neglect stage two especially when a tenant is regularly paying the rent. Tenancies can become a negative experience if not managed throughout the tenancy.
A tenancy agreement has many different clauses, payment of rent is only one of the terms of the agreement. Tenancy agreements will have clauses identifying who the occupants are, how many people may reside at the property, if pets are allowed, if smoking is permitted and a requirement for tenants to report maintenance issues to the Landlord. Verifying these clauses is difficult unless a landlord visits the property to verify the tenant is adhering to the tenancy agreement.
Landlords should visit and inspect the property on a regular basis, Cartref Properties recommends twice a year. Being a proactive Landlord provides tenants opportunities to communicate issues to Landlords. Open two way communication creates a better experience for both Landlords and tenants. Tenants may not report a maintenance issue which is an easy fix as it isn’t bothering them, when left unattended becomes a major concern. Inspections provide Landlords opportunities to attend to minor maintenance repairs reducing costs. Performing routine inspections improves the positive experience of a tenancy. Tenants may be in violation of a term of the agreement which would allow Landlords to seek termination of a tenancy or correct the action through a hearing with the residential tenancy branch. Informing applicants that inspections will be performed during the tenancy often turns away applicants who would have been a negative experience.
Managing a rental property doesn’t stop when a tenant is paying the rent, it moves to a different stage.
Looking for Property Management you can find more information about us at: www.cartrefproperties.com
Oh Canada
Today is Canada day, a time we celebrate the great country we live in. Although this year has been unusual and unlike any before, we can still celebrate our wonderful country.
In my opinion Canada is the best country in the world. From coast to coast every province and territory has amazing places to visit and people of many different cultures. I haven’t visited all the provinces in this great country, the places I have visited have all been beautiful in their own way. I grew up in southern Ontario and have had the opportunity to drive west across this country twice to where I call home, Vancouver BC.
Some of my favorite places in Canada are:
Old town Quebec City with its history and view of the St Lawrence river is spectacular.
White water rafting on the Ottawa river, an amazing ride through nature.
Camping and canoeing in the Algonquin National Park is pure beauty.
Niagara falls must be seen and heard. The size and power of the water flowing is incredible.
The Rocky Mountains in Banff and Jasper Alberta are indescribable, huge massive forms of rock sticking straight out of the ground higher than you can imagine.
Watching a sunset from the top of Sulphur mountain in Banff, canoeing on Lake Louise, visiting Lake Moraine (which is on the old twenty dollar bill) and a tour of the Columbia Icefield, are a few of the amazing places to see in Alberta.
Having lived in BC for almost thirty years now I am partial to British Columbia. It is called beautiful BC for a reason, it is very beautiful. From Northern BC, to the Okanagan Valley, Vancouver Island and Vancouver, BC offers many beautiful places to live or visit.
Some of my favorite places in British Columbia are
Watching the sunset at Spanish Banks, a beautiful sunset over water and mountains.
Skiing at Silver Star Mountain in Vernon with fresh powder is a family favorite spot.
Taking a ferry over to Vancouver island across the water, very peaceful.
Hiking the many local mountains around Vancouver.
Driving the sea to sky highway from Vancouver to whistler, hard to keep your eyes on the road with such beautiful scenery.
Riding the Peak to Peak Gondola at Whistler and stopping for lunch at the top of Whistler Mountain overlooking the Black Tusk.
These are some of my favorite places in our great country, sorry if i missed your favorite place or province. I know there are many more places I still want to visit. Let me know where your favorite place to visit in Canada is.
Cartref Properties wants to wish everyone a HAPPY CANADA DAY
