Investor’s Newsletter Winter Spring 2013Posted on May 22, 2013
The Latest On Vancouver’s Rental Tenancy
TENANCY INFO…DID YOU KNOW?
For a conventional residential tenancy the allowable rent increase for 2013 is 3.8%. The landlord must give the tenant three whole months notice before the effective date of the increase using the form: Notice of Rent Increase – Residential Rental Units
A person under the age of 19 is legally responsible for the tenancy if his/her name is listed on the tenancy agreement.
Penalties hurt Landlords
An administrative penalty as high as $5,000 can be imposed on landlords or tenants who repeatedly contravene the Residential Tenancy Act or Regulations or repeatedly and deliberately disregard an RTB decision or order. However, the legislation also states that if a contravention occurs or continues over more than one day the monetary penalty may be imposed for each day the contravention occurs. On March 20, 2012 the RTO levied an administrative penalty of $115,000 against a landlord for failing to comply with an order of arbitrator. The order had required the landlord to repair the building envelope (including the roof) of a rental apartment building.
DEPOSITS…DID YOU KNOW?
Once the security deposit is paid, the tenancy is considered to be started regardless of whether a tenancy agreement is signed.
There are no circumstances under which you can legally decide to keep any money from your tenants’ security deposits or pet damage deposits. You can only keep some or all of a deposit if the tenants agree in writing, or else if you apply for a dispute resolution hearing and get a written order allowing you to keep some or all of the deposit.
Be sure to include a provision in a Contract of Purchase and Sale to transfer the existing deposit from previous owner to you as the buyer.