What is a Form K?
Living in a Strata Corporation can be complicated, you own the home but unlike individual houses there are additional rules and bylaws residents must abide by. All Strata Corporations have “rules and bylaws” which are created by the ownership voting and approval at General Meetings. All residents including tenants living in Strata Corporations are required to follow the rules and bylaws. How do tenants know what the rules and bylaws are to ensure they are in compliance?
Strata Corporations are governed by legislation in British Columbia called the Strata Property Act. Section 146 of the act explains the requirement for landlords to provide tenants a copy of the rules and bylaws “before the tenant rents the property”. A “Form K” also known as “Notice of Tenant Responsibilities” must be signed by the landlord and the tenant before the start of the tenancy. The Strata Property Act also requires owners to provide a copy of the signed form K to the Strata Corporation within two weeks of renting the property. Many Strata Corporations have added bylaws making it a requirement that Landlords provide the signed form k as outlined in section 146, which provides Strata Corporations the ability to take actions including applying fines if a form K is not provided.
It is important to understand that having tenants sign the form K and sending it to the Strata Corporation isn’t all that is required. A form k is an acknowledgement by the landlord that they provided a current copy of the rules and bylaws to the tenant. When tenants sign the form K Landlord’s should provide current copies of the rules and bylaws, explain to the tenant why they are signing this form, as they are required to comply with the rules and bylaws and should read the documents provided to them. Another overlooked aspect is rules and bylaws often change during a tenancy. The Strata Property regulations standard form K identifies the need for tenants to comply with the “changed” rules and bylaws. During a tenancy, tenants may not be aware of changes to rules and bylaws unless the Landlord provides them with updates. A majority of tenants are not informed of communication in the Strata Corporation as the Strata Corporation will convey information to the home owners. It is the homeowner or Landlord's responsibility to communicate information to the tenants. After each general meeting Landlords should review minutes of the meeting to review changes made to the rules and bylaws. If they are changed or new ones added, Landlords have the obligation to provide the changed rules and bylaws to their tenants. When changes have occurred Landlords should have tenants sign a document identifying they have received the new or changed rules and bylaws.
Properly completing the “Notice of Tenant's Responsibilities” protects both the landlord and the tenant by clearly explaining the expectations of both parties during the tenancy.
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Co-tenants, what are they responsible for?
Many tenancies are between a landlord and two or more people who reside at the property. In most cases when it is multiple people there is usually some sort of relationship between the parties. The relationship can be friends, family or partners.
What happens when one party decides to leave the tenancy? It is important for landlords and tenants to understand that when there are multiple parties listed on the tenancy agreement all parties are responsible for the tenancy. If a couple rents a property and one of the two elects to vacate the property due to a relationship breakdown they should immediately in writing inform the landlord they are vacating the property in accordance with the tenancy act requirements for giving notice to vacate. Failing to provide this notice leaves them responsible for the tenancy even after they have left the property.
When there are more than one parties on the agreement, if one person severs the agreement it ends the agreement for all parties. Providing termination of the agreement protects the tenants' rights to being responsible after they vacate the property. If a tenant fails to give notice of leaving the property without advising the landlord then they could be held responsible for property even after they have vacated. If the parties who continue to occupy the property failed to pay rent or caused damage, a Landlord could seek reimbursement from all parties listed on the tenancy agreement.
What benefit is it for a landlord to have the one tenant provide notice to vacate the property?. At the time a notice to vacate is delivered, the tenancy begins the process of ending. If the other parties want to continue to reside in the property, you can require them to apply to continue renting the property. The original tenancy was granted based on the multiple parties living at the property. What if the remaining party doesn’t have the financial resources to pay the rent without the other party?. This provides the landlord at that moment in time to effectively evaluate if the current tenant has the resources to remain in the property.
If the party is unable to afford the property then it provides the landlord the opportunity to seek out a new tenant which potentially allows for an increase in the cost of the rent that is being paid. If the one party vacates and the other party remains but fails to have the resources for rent and or damage deposit a Landlord may lose contact with the other party
And the ability to collect from them in the event of a loss incurred.
Often a tenancy relationship will breakdown, and one party will move out and the remaining tenant will locate a new roommate without either party advising the landlord. This could be considered a breach of a tenancy clause for subletting. Inspect the property regularly to ensure the parties on the agreement are the only ones residing at the property.
You can find information about co-tenants rights in policy guideline #13 on the Residential Tenancy website.
If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
What is stage two of a tenancy?
Previously we have mentioned that every tenancy has three stages. Stage one is the process of selecting a tenant, stage three is the ending of the tenancy. Stage two is the part in the middle, it’s managing the tenants while they occupy the property. Many landlords find tenants and when they pay rent on time are satisfied they have a successful tenancy. They fail to manage the property during the tenancy.
Every tenancy agreement has multiple different clauses, payment of the rent is only one portion of the tenancy agreement. Section 47(1) of the Residential Tenancy Act outlines reasons a Landlord can terminate a tenancy for cause. There are 12 different examples listed. Failing to pay a security or pet deposit and rent or only two of the twelve reasons listed.
Some of the other reasons for termination include the tenant has failed to comply with a material term of the tenancy, there are an unreasonable number of people residing at the property, the tenant has caused damage to the property and a tenant has sublet the property to another party without the permission of the landlord. The tenant is doing something illegal. All of these items are undetectable by receiving the rent.
In our experiences we have come across the people living in the property not who are on the tenancy due to a relationship breakdown, job loss or other circumstances. Often tenants obtain pets after they occupy a rental unit. This is a material term of the agreement if pets aren’t permitted. Tenants often fail to report potential damage to the property fearing they may be responsible for the issue. There are times when a tenant is responsible for damage, and there are times when a landlord is responsible for the maintenance of the property.
How can a landlord manage stage two of the tenancy?. The Residential Tenancy Act allows Landlords to access their rental properties at least once per month, with proper notice to inspect the unit. In some cases this frequency may be needed, in most cases a minimum of two per year (every six months) is a good inspection time frame. Some homeowner insurance providers require rental properties be inspected every three months. As a landlord it is important to ask your provider what their requirements are.
Cartref Properties performs two inspections within a twelve month period for all the properties we manage. We are clear in our intentions to the tenant in that we inspect the property to ensure they are adhering to the tenancy agreement including the above mentioned reasons for termination. Performing inspections is also a great opportunity for landlords to save cost on repairs. Being proactive in repairing an item is less costly than waiting for the item to fail completely. Completing a minor repair to prevent a major issue can save significant cost in the long run.
Cartref Properties goal for our clients is to have a positive tenancy with their rental property. Managing stage two with cooperation from the tenants and landlords creates a more positive tenancy, encourages engagement from the tenants, and improves the tenancy experience for all parties. During stage one, Cartref Properties is clear to applicants about how we will manage stage two and the requirement for inspections. We find this eliminates negative experiences in tenancies as the quality of applicants increases.
If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
Location, Location, Location…How the Pandemic is changing the rental market
Before the Pandemic the term Location, Location, Location in real estate was used to describe the best area. This was similar in the rental market, the location and proximity to the city centre, transit, schools, and or other amenities were important factors. Within the greater Vancouver area, being closer to downtown generally increased the price of rent mostly due to employment requirements. As you moved further away from the city centre the prices reduced, there were always areas or neighbourhoods not in the heart of the City that were attractive for different reasons. Kitsilano, South Granville and Kerrisdale are a few areas in Vancouver that were always attractive. Moving to the suburbs of Burnaby, Coquitlam or Langley generally decreased the rental rate significantly.
Along came the Pandemic and it is redefining the meaning of Location, Location, Location. Many larger urban areas don’t have large housing spaces due to the cost of construction. Many condo buildings in downtown Vancouver consist mainly of one bedroom units with fewer two or three bedrooms. When the pandemic hit and people were asked to work from home they realised they didn’t have a functional space to live and work in the same location. This created a number of people residing in one bedroom units to seek out larger spaces of two bedrooms or larger. At the start of the pandemic in the downtown area we found many people who were residing in a one bedroom looking at two bedroom units. We also experienced people who lived in the urban area looking to move to the suburbs for larger space at a comparable price.
What we have noticed in the past year of the pandemic is that comparable prices need to reflect a wider geographic area due to the lack of requirement for a tenant to be close to a certain area for employment needs. Prior to the pandemic an individual may have lived downtown Vancouver for employment reasons, now is moving to Coquitlam, Richmond or Langley, and can afford or is willing to pay the Vancouver rent. Now when we look at comparables for Coquitlam we need to consider all the local areas due to tenant work flexibility. Being near the transit may not be as important anymore as they are not commuting regularly. They are now making choices based on what is the best unit for their needs and what area is the best location for their own lifestyle.
If employers allow work from home to continue permanently, then Location, Location location, isn’t going to have the same meaning it had prior to the pandemic. The pandemic, and today’s technology which allows people to work remotely has changed forever our idea of what housing looks like.
If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
Is the move- in fee reasonable?
There are many costs Landlords incur when renting their property. The Residential Tenancy Regulations outline prohibited fees, refundable fees and non-refundable fees owners and tenants may encounter.
Section five of the Regulations identifies prohibited fees which include guest fees, replacement of keys or devices if the landlord changes the keys. Section 6 identifies refundable fees which include keys or devices which are not the sole access to the property and can only be the direct cost of replacement. Section 7 identifies non-refundable fees permitted, which include direct costs for replacing keys, or additional keys, service fee charges for returned payments, and move in or move out fees.
Item(e) Move in or Move out Fees charged by Strata Corporations are fee’s Landlords are permitted to charge tenants when renting property in a Strata Corporation. All Strata Corporations have a move in and out process outlined in their bylaws or rules. The bylaw or rule will identify a fee which is charged to owners/tenants when a move in or out occurs. Some Strata Corporations may only have a move-in fee and no move out fee.
Landlords should be familiar with the bylaw or rule which identifies the amount of the move- in fee and communicate this to potential tenants when applying as a cost tenants will be required to pay. Landlords can collect the fee from the tenants and pay the strata directly or have tenants pay the Strata Corporation directly themselves.
What many owners and tenants are not familiar with, are the fees “reasonable”. Section 6.9 of the Strata Property Regulations identifies that strata corporations may have fees for use of common property, but that fees must be reasonable. If you rent a unfurnished property the CRT has identified in multiple cases that the industry standard is showing fees in the range of $50 to $200 and finding this to be reasonable. If you rent a furnished property, is the $200 fee reasonable. The CRT again has ruled in multiple cases that a bylaw needs to be clear on what a move entails and that the fee must be reasonable. The Watson case is the standard reference as to what is “reasonable”. In that case it was determined the $100 move in fee for a roommate not moving any furniture in was excessive and the fee was reduced to $25, as the strata could not identify what actions it took to prove the cost of $100. Many strata corporations will even try to apply the move-in fee for a single piece of furniture being delivered. CRT rulings have determined this alos does not constitute a move, and therefore a move in fee should not apply.
Check your bylaws and see what your move in and out fees are before renting your property.
If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com