Mutual Agreement to end Tenancy
There are many ways to end a tenancy, one overlooked option is the mutual agreement to end tenancy. A mutual agreement to end the tenancy is simply an agreement between the Landlord and Tenant to end the tenancy on a specific date.
When should this agreement be considered? It may be used when a tenancy is frustrated and both parties are unable to agree how to correct the disagreement. I have used it in the past when a tenant obtained a pet without permission from the Landlord, which was in violation of the tenancy agreement. The tenant wanted to keep their pet, which required them to find a different rental and they agreed to move out at a mutually agreed upon date. The tenant found a new place to live and the owner was able to have the property back to rent to a new tenant without a pet.
I recently attended a Residential Tenancy Branch hearing where an owner had submitted a request to terminate the tenancy due to damage to the property. The moderator started with asking if both parties would consider the option of mutually ending the tenancy instead of going to a judgement. The Landlord and tenant were able to reach an agreement on a date when the tenant would move out.
There are benefits for both parties to mutually agree on the end of the tenancy. Tenants know they have time to look for alternative living accommodations. Landlords are able to plan for when the tenants vacate the unit. If the unit needs repairs or updating they can begin to make arrangements to have that completed as soon as the tenants vacate. Landlords are able to begin searching for a new tenant knowing when the current tenancy will end.
A benefit of the mutual agreement is it is a less adversarial process and both parties know the end is coming, reducing tension between the two parties. If you have frustrated tenancy consider approaching the tenants, or Landlords and mutually agree to move on.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Receiving Applications from Tenants.
Being a Landlord requires performing your due diligence at every stage of the tenancy process. One of the early steps is the application form submitted by prospective tenants. Recently I reviewed an owner’s application who is self managing their property. The application form failed to request some basic information required to make an informed decision on prospective tenants.
An application should ask for the current address with unit number if apartment, condo or townhouse. Employer information including address, phone number, name of supervisor and their position in the company. Asking for more details provides the opportunity to perform some background research before contacting previous landlords or employers.
I was recently asked how I know if the person listed on the application is really the supervisor or manager of the potential tenant. The number they give could be the person’s cell phone number and not a work number of the business. There are many tools online to confirm the address and phone numbers of a business before contacting the employer. I always research the employer and call the main number to confirm the person listed as the supervisor is an employee of the company and the supervisor of the applicant.
Recently I received an application from some applicants which included a person indicating they worked for a specific company. The address of the business on the application was correct. When I called the company they were not familiar with the employee or the supervisor identified on the application. It was clear the information provided by the applicant was inaccurate and I advised my client to not accept the applicant.
Another applicant supplied an address where they lived, without supplying the unit number. When I asked the Landlord which unit they lived in they indicated it was a Strata property and they owned just the one unit. I had already researched the building address online and identified the building was a “rental apartment building”, not a Strata Corporation which meant the applicant had provided inaccurate information. Again I informed my client to not accept the applicants.
When you have the right information it is easier to make an informed decision on potential applicants. Making a wrong decision in the beginning can be very costly for Landlords when they attempt to have the tenant vacated from the property.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Should the BC government change the Strata Property Act allowing owners to rent a portion of the strata lot?
BC governments often comment on the affordability housing crisis especially in Vancouver. A small change to the Strata Property Act could make renting more affordable. A recent CRT decision VIS5602 vs Copeland, to uphold a Strata Corporation fines against an owner who’s daughter was residing in her strata lot and then had a “roommate, friend or companion” move in with her is part of the affordability issue.
Many Strata Corporations have bylaws prohibiting the renting of “part of the strata lot”. Some people have units with more than one bedroom which is not being used and could be rented by the owner. Governments are always looking for ways to reduce the cost of renting for tenants. One way to make it more affordable is to restrict Strata Corporation’s right to prevent a person from renting “a portion of their strata lot”. Many Strata Corporations have bylaws preventing owners from renting a portion of their strata lot, similar to the VIS 5602 Bylaw which reads “that an owner, tenant or occupant must not rent less than all of a strata lot.”
If an owner has a two bedroom condo or townhouse and they are willing to rent to a roommate should they be allowed? If the owner resides in the unit why should they be prohibited from renting their spare bedroom. The wording of the bylaw in the recent CRT case could be applied if an owner had a friend, brother or sister move in with them as a roommate, the owner would be in violation of renting less than all of the strata lot. The interesting part of the CRT case is the adjudicator used definitions from the Residential Tenancy Act to define their argument of what rent and a tenant is. Section four of the residential tenancy act outlines what the act does not apply to. It states the Residential Tenancy Act doesn't manage a “living accommodation in which the tenant shares bathroom or kitchen facilities with the owner of that accommodation” If the Residential Tenancy Act doesn’t recognize these situations, is it a “rental”?.
Many Strata Corporations have similar bylaws like the one in this CRT case effectively prohibiting a “roommate” type situation even when an owner resides in the property. The government should amend the Strata Property Act prohibiting bylaws preventing an owner from renting a portion of their strata lot, when they reside at the unit. This would increase the amount of rental stock available reducing costs of renting and making housing more affordable.
Moving forward after 2020 this could have a larger impact for renting and housing affordability in all municipalities. If work changes and employers continue to allow workers to work remotely they may need more space for a home office, and may choose to relocate to a less densified area. Will downtown Vancouver become less expensive to rent or own than the suburbs due to demand based on the size of the properties. Some companies have indicated altering wages based on employees who work from home. If wages change will owners be able to afford to live in their current spaces, would renting the spare room help with the cost of living.
I have already encountered potential tenants moving from the city to the suburbs for a larger space for comparable rent due to employers allowing them to work remotely. If that trend continues owners in larger cities may need to offset loss of income to continue to afford their current cost of living. Will Strata Corporations allow owners to rent “portions” of their strata lot under hardship claims if their income has changed.
The rental housing market may change drastically in the near future, due to technology and how efficient business has operated during these times and employees' unwillingness to commute for work.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
https://decisions.civilresolutionbc.ca/crt/sd/en/item/487216/index.do
Non payment of rent is one reason Landlords may serve a notice to end a tenancy, there are other options available to Landlords.
A tenancy agreement has many different terms within it, payment of the rent is only one of the terms. Landlords complain about tenants not paying rent and try to evict them, only to find out when they visit the property there are multiple reasons the Landlord could have applied to end the tenancy.
Section 47 “Landlord’s notice:cause” of the Residential Tenancy Act provides alternatives to non payment of rent for which Landlord’s can provide notice to end a tenancy. Here we will discuss a few of the other options available to Landlords which are often overlooked.
Landlords often wait for tenants to miss a rent payment before trying to evict the tenant. A tenancy agreement is a contract between two parties. Tenancy agreements in BC must identify when the rent is due, and how frequent the payment is to be made. Failure to meet this term may be cause for a Landlords notice to end the tenancy. When a tenancy indicates rent is due on the first of each month, and a tenant consistently pays rent after the agreed upon date, a Landlord may serve notice to end the tenancy. When tenants fail to pay rent on time Landlords should always send a ten day notice to the tenants. A ten day notice provides a specified time frame for tenants to pay rent inorder to eliminate the notice. If a tenant pays consistently late these notices could be supplied as evidence of regular late payments. Section 47 allows for Landlords to send a notice to end tenancy for repeatedly paying rent late.
Tenancy agreements are required to have specific terms including who is residing at the property. Section 47 has a provision for Landlords to provide notice to end a tenancy for an unreasonable number of tenants at the property. When a tenancy agreement is signed for two people to reside at the location and the tenant sublets or allows other people to reside at the property they would be in violation of the tenancy agreement. This would allow a Landlord the option of serving notice to end the tenancy.
Another option for Landlords is when a tenant or person allowed on the property by the tenants has caused significant damage to the rental unit or residential property. Often Landlords are surprised to find the rental unit has been damaged after the tenants have moved out of the property.
The last two examples require Landlords to visit their property and inspect the unit ensuring these terms of the tenancy agreement are not being violated. Many Landlords believe a tenant is good when rent is paid on time. Payment of rent is only one term of an agreement, Landlords should ensure tenants are in compliance with all terms of the agreement throughout the term of the tenancy, which will help landlords have a more positive experience.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com
Do your due diligence when selecting a tenant.
I was recently asked “when a person applies to rent how do I know the person they have provided as a reference as the employer is really their supervisor?”
This is the dilemma when reviewing tenant applications. Owners and property managers need to read between the lines and research the information on the application to provide you with confidence that the applicants are good tenants. One should never take for granted the information provided is accurate, it is the Landlord or property managers role to investigate the accuracy of the information.
The first step is to have a quality application form which asks for enough information about the applicants providing you the opportunity to research the tenants. I have seen applications that ask for a phone number of the employer without asking for the company name, address and supervisors position. By asking for the additional information one can research the company first to see that the applicant is providing a legitimate company, and supervisor. Many companies identify employees on their websites. An owner or property manager can research the company before calling to speak with the employer. Many applicants provide a direct number or cell number to their supervisor which may or may not be their employer. I always research the company and call the main phone number to confirm the supervisor identified on the application is an employee, and the supervisor of the applicant. Performing this small action first sometimes leads to identifying inaccurate information.
The same can be performed when it comes to a previous address of where the applicants lived. It is imperative to use online resources to confirm the address is a residential address where a person would have resided. Recently I reviewed an application where the applicants provided an address which appeared to be a rental apartment building. When I called the Landlord on the application they indicated he would need to call me back on his lunch our. I found this to be odd, if it was a rental building he would be the onsite manager or property manager, why does he need to wait for lunch break to call me back. The landlord indicated he worked not at the building or for a property management company and that the building was a strata building. Research through Landtitles office confirmed it was not a strata building meaning the applicants were providing false information. Performing these tasks is important to ensure you are selecting quality tenants.
These are small details and don’t take significant time, but when not performed can result in significant issues for Landlords and property managers. Selecting tenants who have provided false information can result in a very negative tenancy. After the tenant has occupied your property it may take significant time to have them removed for unpaid rent or other issues. Take the time to do your due diligence especially in times like today where it is a tenant favourable market.
Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com