Three concerns with Landlords
Recently I was speaking with a prospective applicant for a property we had available. After some discussion about our property, they advised they wouldn’t be able to rent our place due to their landlord raising the rent. This surprised me and I inquired about the rent increase. They advised their landlord had informed them that if they didn’t sign a new lease that evening they would need to move out at the end of the month when the “fixed term expired”. As a property manager without knowing more details three things are of concern.
One, due to the pandemic the Province of BC currently has a rent freeze in place restricting Landlords ability to increase rents. A rent increase means the rent paid must not change, requiring tenant’s sign a new lease at a higher rate is a rent increase.
The second issue is more concerning as it disregards the Residential Tenancy Act fixed term lease requirements. In 2017 the BC Government changed laws around fixed term leases, preventing a Landlord from evicting tenants at the end of a fixed term and then renting the unit to another party at a higher rent.
A tenancy agreement can begin with a “fixed term,” it is what happens at the end of the fixed term that was changed in 2017. Landlords are now required to declare their “intention” for the property when the term ends, at the start of the tenancy. If the landlord has no intention of moving back into the property when the fixed term expires, the tenancy agreement must state it becomes a month to month tenancy. If the landlord indicates on the agreement at the beginning of the fixed term they or a close family member will re-occupy the unit, they must move back in for a minimum of six months.
These laws were changed because many landlords choose to vacate tenants and re-rent their properties at higher rates then the allowable rent increase limit determined by the government. If a landlord requires a tenant to vacate at the end of the fixed term and fails to move in, a past tenant could be entitled to compensation equivalent to 12 months rent for bad faith negotiations.
The third item is signing of the new lease. A tenancy agreement is a contract between two parties which requires both parties agreeing to sign. Due to the changes of fixed terms the agreement must state the tenancy becomes month to month when a landlord won’t occupy the unit. This prevents landlords from forcing tenants to sign a new lease in order to continue renting the property.
All of the issues above are why tenants feel poorly treated by landlords, and why legislators change laws that appear to be more favourable to tenants. Being a landlord requires one to ensure they know and understand the laws, regulations and processes of managing a rental property.
Need assistance with your rental property contact us for an evaluation of your needs.
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https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/ending-a-tenancy/landlord-notice/two-month-notice#Use
Do I need to reply to the bylaw letter?
Strata Corporations have bylaws and rules which govern the process of how the building is managed. Strata Councils have an obligation to enforce the bylaws when a complaint has been received. Section 135 of the strata property act outlines the process Strata Corporation’s and councils must follow and owner and tenant rights in responding to a complaint.
Section 135 requires the Strata Corporation to send owners and the tenants communication with the particulars of the complaint and a reasonable opportunity to answer the complaint before applying a fine or other remedy. Other remedies could be charging the cost of a repair to your strata lot or denying access to a common area when the complaint is related to that common area.
When an owner or tenant receives a bylaw infraction complaint you should respond to the complaint. Often owners receive letters and discard them believing nothing will happen. After the time frame allotted on the letter has passed, strata council is in a position to make a decision to fine you the owner, or the tenant for the infraction. Often councils are looking for owners or tenants to correct their actions and change their behaviour in accordance with the bylaws. It is important to respond to the infraction letter and explain your side of the situation so that council has all the information ensuring they are making an informed decision.
Most buildings follow the process correctly, some Strata Corporations apply fines without the proper notification. One of the most common areas for improper notice is, late or non payment of strata fees. Payment of the strata fees is a bylaw and requires Strata Corporations follow section 135 before applying a fine to your account for non payment of strata fees.
When responding to your bylaw infraction complaint council must provide the option of requesting a hearing in front of council to explain your position on the matter. You should evaluate the complaint received and decide if this warrants you requesting a hearing in order to better clarify your position. It is important for owners and tenants to understand council is not required to provide an answer at the time of the hearing. As an owner and or tenant it is important to read and respond accordingly to the complaint received.
Need assistance with your rental property contact us for an evaluation of your needs.
www.cartrefproperties.com
How do you know you have a good tenant?
You don’t - Doing your due diligence with reference and credit checks which indicate positive information about tenants could result in a negative experience. How does Cartref Properties selection process help owners find quality tenants?.
In a previous blog about stage one of the tenancy we discussed how the tenant selection process has multiple steps. Each step gives you the opportunity to learn more about applicants before deciding to rent your property to them. The tenant selection processes shouldn’t be rushed, to ensure due diligence can be performed effectively.
Each step gives you the opportunity to confirm or verify information, eliminating tenants who may not be suitable for your property. Tenant selection has three main steps, screening, showing and evaluating, when not rushed are very effective in selecting quality tenants.
The screening process is performed when applicants contact us asking to rent or view the property. This step gives the opportunity to ask basic information including who would be renting the unit, when they want to move in, where they currently live and why they are moving. They may not provide all these details during this process and you will need to decide if you want to proceed to the next step based on the information provided. How quickly they reply or effectively they answer your questions gives insight into them as a person. I often asked people to tell me about themselves and who would live there and the reply is just the number of people, with no further details. This is a sign they are not reading our request.
Showing the property is an opportunity to interview the applicants in person. It shows if they are respectful of our time, property and process. When applicants fail to attend a showing on time without an explanation it provides insight into their character. How the tenant views your property, do they ask to enter, or open a door or closet, or do they proceed without asking provides further indication of their personality. If an applicant asks if you can alter the selection process it often indicates inaccurate information may be provided.
When potential renters are viewing the property it is important to ask questions about them, including where they work, live and plan on moving. These questions would be asked in the screening process, during the showing is the opportunity to hear if the applicants provide the same information or different details. A showing also provides the opportunity to explain the evaluating process and what is expected during the tenancy at the property.
The final step is the evaluation process. After the showing we may provide potential renters with an application form to rent the property. Upon receiving the application we review notes taken during the screening and the showing process and compare if details are consistent with the information on the application. When information is inconsistent it often means they are trying to hide something. We look for signs applicants are trying to keep information from you.
Today with the advent of cell phones it’s very easy for applicants to provide contact information for managers/supervisors where the phone number is not the business number.
I have been asked how do you verify this situation. Doing your due diligence to ensure the contact person provided is actually the supervisor may require more investigation. We search for the business online and will call the main business number asking to speak with the person provided on the application.
A recent applicant asked me why I didn’t call the number provided for the employer. This immediately advised me they were not forthcoming with the information provided on the application. I had researched the employer online, called the main office number and asked for the person identified on the application. Although I was informed they were the applicants supervisor, I had suspicions they weren’t based on the response provided.
Another tactic used by applicants is pressure of time. This same applicant advised me one day after sending the application in (and on a Saturday) they were approved for another unit but preferred ours and wanted to know when they would be approved. We continued our normal process of checking applicant information, which carried over into the next work week and were able to determine multiple pieces of information provided were inaccurate. Allowing us to select a different applicant who we feel is more appropriate.
Applicants who are good people will provide you with correct and accurate information required to make an informed decision. Applicants who try to alter the process of evaluating an application often are trying to hide something from you, and are probably a tenant which would provide a negative experience.
There are many good tenants who will rent your property, sometimes it takes time to find the right one.
Need assistance with your rental property contact us for an evaluation of your needs.
www.cartrefproperties.com
Primary Client
Owning a rental property requires knowledge and understanding of provincial tenancy law including the Residential Tenancy Act and Regulations.
Renting your property which is located within a Strata Corporation requires additional knowledge of the Strata Property Act, Regulations, Strata Corporation bylaws and rules With all the information it is important to hire the right professionals to help you manage your rental property.
Cartref Properties only provides Rental Property Management Services, specialising in management of rental properties within Strata Corporations. Cartref Properties doesn’t provide Strata Management Services eliminating potential conflicts of interest between the Strata Corporation and the rental property.
When a rental unit is managed by the management company of the Strata Corporation
one party will be identified as the primary client in the event of a conflict of interest. Strata Corporations will always be identified as the primary client over the rental property. Providing only rental management service allows Cartref Properties clients to always be the primary client.
Cartref Properties has extensive experience working within the strata field and can help owners experience a positive tenancy when renting their within a Strata Corporation.
You can find more information about us at: www.cartrefproperties.com
Enforcing an order of possession
Renting a property you own can be very emotional, and sometimes Landlords have a difficult time separating emotions about their property when dealing with tenants.
One of the more emotional situations in property management is enforcing an order of possession. An order is obtained from the Residential Tenancy Branch after a dispute hearing between the Landlord and tenant. Landlords can file for orders of possessions for many reasons, non payment of rent is the most common. After the two parties have attended a hearing at the Residential Tenancy Branch a decision will be provided by the adjudicator and the decision will outline if an order of possession is granted.
After receiving the order of possession the Landlord must deliver the notice of the order to the tenant, in accordance with the Residential Tenancy Branch requirements for delivery of notices. The order of possession will advise the tenant they must move out within a specified time after receiving the notice, or a particular date. When tenant’s fail to move out at the specified time or date, a Landlord must enforce the order in the BC supreme court inorder to have the tenants vacated from the rental property.
Before filing a writ in the courts, Landlords must confirm with the Residential tenancy branch that the tenant hasn't filed for a review of the order. If the tenant hasn’t filed for a review the Landlord will file a writ in BC Supreme court. Upon filing the writ a Landlord must use an authorized court bailiff to enforce the order. Only a court bailiff has the authority to remove a tenant from a property.
It is important for Landlords to remove the emotions and follow the process when enforcing the order. A tenant may request more time, or make other requests to delay moving from the property. Using a property manager can help remove the emotions of the eviction and enforcement of the order of possession. It isn’t an easy process to remove a person from their home, though there are times when it is required. Landlords and tenants understand by the time the parties reach the point of an order of possession being granted multiple steps would have been taken to prevent the situation from reaching this point.
Need assistance managing your rental property, Cartref Properties can help you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com