Rental Owners and Managers Society of BC

Part Three: Deducting From and Returning Deposits

2012-01-27T11:17:00.000-08:00

Welcome to the final installment in our three part series on security deposits. (See the prior two weeks posts on Security and Pet Damage Deposits.)

Most issues for landlords surrounding deposits happen at the end of the tenancy, after the condition inspection has been completed. Many people do not know how to properly deduct from or return deposits and if either is not done properly, it can mean increased costs for the landlord. The landlord has 15 days from the end of the tenancy and/or the date you received the forwarding address (whichever is later) to do one of three things; your first option is to return all of the deposit(s). This does not mean that it has to be in the tenants hands within 15 days; just that it has to have left your hands in that time.

The next two options are used when you'd like to deduct any amount from the deposit(s). Once you know how much you'd like to keep, you can have the tenant agree in writing to the specific deductions and return the remainder, if any. Both the ROMS BC and Residential Tenancy Branch (RTB) Condition Inspection Reports contain "Security Deposit Statements;" you could use this section to record the amount of the deposit(s), any interest payable and whatever deductions you'd like to make. If the tenant agrees, they can sign authorizing the deductions.

Your last option for making deductions from the deposit(s) is to apply for dispute resolution at the RTB to retain all or part of either deposit. If your tenant owes you more than the deposit(s) will cover, you can include a request for an additional monetary order at the same time.

What do I do if my tenant does not give me a forwarding address?

Tenants are required to provide their forwarding address at the end of a tenancy. If they fail to do so, they are not entitled to claim their deposit back. Tenants have one year from the end of tenancy date to provide you with the address. After that time, they have lost their right to claim the deposit(s) back.

What if my tenant does not take part in the condition inspection?

The Residential Tenancy Act states that a tenant that does not take part in either condition inspection waves his or her right to the return of the deposit(s). That being said, if your tenant provides you with a forwarding address - even if he or she misses either or both inspection opportunities, you should still apply for dispute resolution to retain the deposit(s).

Do I have to pay interest on the deposit?

Yes; interest is payable on all security and pet damage deposits in BC. Each year, the Residential Tenancy Branch calculates the rate for that year. For 2012, the rate remains at 0.00% (which it has been since January 1, 2009). The RTB has an interest calculator available on their website, but just remember that you calculate interest from the date you receive the deposit to the date you return it (not from the start of the tenancy to the end).

Remember that every situation is different and the ROMS BC staff are here to help you work through any situation - deposit-related or otherwise.

Part Two: Pet Damage Deposits

2012-01-20T15:07:00.000-08:00

Welcome to the second installment of our three part series on deposits.

You already talked about security deposits; what’s the difference between security and pet damage deposits?

Security deposits can be requested for any residential tenancy in BC, where pet damage deposits can only be requested when a pet (or pets) are present in the rental unit. The maximum amount a pet damage deposit can be is also half a months rent – despite the number of pets in the unit.

When do I take a pet damage deposit?

A pet damage deposit is generally paid at one of two times in a tenancy; the first being at the beginning of the tenancy when the tenant applies with a pet, and the second being when the tenant gets a pet for the first time during a tenancy. If your tenant is getting a pet part way through a tenancy, remember that if they moved in prior to January 1^st, 2004 and you did not complete a move-in condition inspection report, you must complete one now. Just as with the security deposit, the tenant has 30 days to pay this from the date it is requested.

What can I deduct from the pet damage deposit?

That one’s easy; pet damage! This deposit is meant to cover only damage caused by a pet. At times, this can be a tricky thing to determine, as some damage could be considered ambiguous. When you complete the move-out inspection, be sure to mark down what damage you can be sure was made by a pet. Then, when filling out the Security/Pet damage deposit statement, be sure to use the correct line for pet damage.

Remember again that every situation is different and the ROMS BC staff are here to help you work through any situation.

Be sure to come back next week for the final chapter of the series; deducting from and returning deposits.

A Three Part Series on Deposits

2012-01-13T10:11:00.000-08:00

Part One: Security Deposits

Welcome to the first in a three part series on deposits in residential rentals in BC.

Contrary to popular opinion, you cannot take a “damage deposit” in BC. This is because the Residential Tenancy Act allows you to take a security deposit of a maximum of half a months rent instead.

But what’s the difference?

The answer is: everything! A “damage deposit” is a deposit (in other provinces) that applies only to damage done to the unit. With a security deposit, you are able to claim any amount owing by the tenant whether it be damage, rent, fees (like the $25 administration fee for late rent in the ROMS BC Residential Tenancy Agreement), cleaning, liquidated damages – you name it!

When do you take a security deposit?

Generally this is done before the tenancy begins, but remember that the tenant does have 30 days to pay it from the date it is requested. Most tenants will pay the security deposit before they move in. But if you have a tenant who refuses to do so, this could potentially be a red flag about what could happen with other payments during the tenancy.

Remember that every situation is different and the ROMS BC staff are here to help you work through any situation.

Check back here next Friday for part two of the series: Pet Damage Deposits.

CMHC's Fall Rental Market Report

2011-12-13T13:54:00.000-08:00

CMHC reported today that vacancy rates in BC decreased to 2.4% from 2.7% one year ago. The survey results are heavily influenced by Vancouver CMA, which contains nearly 2/3 of the units surveyed. CMHC reported an increase in Victoria from 1.5 to 2.1%, a decrease to 3.0% from 3.5% in Kelowna, increases in Abbotsford, Kamloops, Nanaimo and Vernon, and decreases in Chilliwack, Campbell River, and Prince George.

Average rent increases were 2.7%, marginally above inflation for the period.

The opinion of ROMS BC is that vacancy rates are generally understated. The fundamental reason being that this report is only indicative of the primary rental market - structures with three rental units or more. As an example, our research indicates that Victoria's vacancy rate is in the 4 to 5% range and has been for over a year.

Do the results seem accurate for your geographic area?

-- LandlordMentor and AdviserToTheAdvisers

Deposit Interest Rate to Remain at 0%

2011-11-25T11:11:00.000-08:00

Interest on security and pet damage deposits is payable at a rate prescribed by section 4 of the Residential Tenancy Regulation. It states that the rate will be set each January 1st for that calendar year, with the rate being "4.5% below the prime rate of the principal banker to the Province." This means that for interest to be payable, the prime rate must be at least 4.6%. We're confident in predicting that the prime rate will be well below 4.6% next month!

The security deposit interest rate has been 0% since 2009, meaning that for any tenancy ending in 2012 that began later than January 1, 2009, there is no interest payable.

Interest rates for earlier years were 1.5% for each of 2007 and 2008, 0.5% for 2006 and 0% for 2002 to 2005 inclusive.

Security and pet damage deposit interest is compounded, so when a tenancy of many years' duration ends, an appreciable amount of interest might be due to the departing renters. You can calculate the amount of interest owing in literally a few seconds by using the Residential Tenancy Branch Deposit Interest Calculator. Go to rto.gov.bc.ca and click on Deposit Interest Rates & Calculator in the column on the left of the page.

-- LandlordMentor

10 Tips: How to keep their attention on the phone

2011-11-15T11:42:00.000-08:00

With the market at one of its softest points at recent history, it's important to continue to screen tenants before allowing them to move in, while at the same time making sure you don't let any of the good ones go. (Thank you to Rent&Retain for these great tips!)

1. Learn to say "goodbye" before you say "hello;" meaning eliminate all distractions and focus on the task at hand.

2. Make sure get your caller's name, but don't overuse it.

3. Ask them how many different ways they heard about your vacancy. (Often, there's a combination of advertising sources that prompted them to contact you.)

4. If you're comfortable with the caller, ask: "When would you plan on moving into our community?" It's a great pre-qualifying question that starts the assumptive close.

5. Find out if they have any special needs that your community has to offer, such as walk-in closets or a full sized washer and dryer.

6. Always ask for an appointment.

7. Repeat back to them what they told you was important. It shows you paid attention during the call.

8. Offer to text Mapquest directions to your property to their cellphone.

9. Offer to set up a reminder call or email about their appointment.

10. Thank them for calling and tell them you're looking forward to helping them find their new home.

-- AdviserToTheAdvisers

Friday, October 28th

2011-08-11T09:21:00.000-07:00

This date needs to be marked in your calendar!

Why? Because it's the date of ROMS BC's Associate Members Trade Show, Annual General Meeting, and [the first ever] Trivia Night! Once again being held at the beautiful Crystal Garden in downtown Victoria, BC.

From 4:00 until 6:00, join us for our formal Associate members trade show. Nearly 30 exhibitors will be excited to tell you about new products and incentives. In addition, there are multiple Associate member product demonstrations and informative workshops. This portion of the event is free to attend for ROMS BC members and their guests.

At 6:30, we will have a gourmet dinner catered by the Fairmont Empress Hotel. This will be followed by our [brief!] Annual General Meeting. The early bird registration cost to attend dinner and the evening that follows is $54.95 per person for ROMS BC members and their guests.

Beginning at 8:00 will be Trivia Night. Replacing the Casino Night of the past three years, Trivia Night gives you the opportunity to reconnect with Associate members - while having a great time! Each booth will have questions from one of seven categories; geography, entertainment, history, arts and literature, science and nature, sports and leisure, or BC's residential rental industry. Each question will be timed, and in order to fill all the pieces of your "cake," you'll need to visit every booth. And if you get the answer correct at any booth, you'll win ROMS BUCKS!

At 9:45, Trivia Night will be over. At this point, all members and their guests will come down to the prize auction, where ROMS BUCKS are used to "purchase" fabulous prizes. And if you don't win any ROMS BUCKS? No worries; there will also be door prize draws.

If this sounds like your kind of evening, watch your mailbox and inbox for more information!

-- AdviserToTheAdvisers

HST Referendum

2011-07-04T15:21:00.000-07:00

How do we get past the emotion and vote on the facts? Some things to consider:

> HST hurts the residential rental industry because we pay tax on more items than we did with the PST, and can claim no input credits.
> If HST is repealed, it will cost BC taxpayers $1.6 billion in repayments to the federal government.
> When HST was implemented, about 400 provincial government jobs transferred to the federal government. Will those positions return to the BC government and have to be paid for by BC taxpayers if HST is repealed?
> HST is a more efficient tax; it costs less for businesses to administer.

ROMS BC isn't advocating yes or no, but we do advocate that you exercise your right to vote. And because of Canada Post's lockout, voting deadlines have been extended; if you haven't received your voting package, you need to request it by midnight on July 22nd, and you must mail your voting card before 5:00 pm on August 5th.

Remember; "NO" means keep the HST and "YES" means repeal it.

How do I do a credit report?

2011-06-08T11:30:00.000-07:00

Credit checking is one of the most important services we offer our members. But how do you actually get a credit report?

What you need:

1. The full, legal name of your tenancy applicant(s).

2. Either date of birth or Social Insurance Number of each applicant.

3. Full present address (this includes postal code!).

4. A signature for consent to perform a credit [and reference] check.

Other helpful items:

1. Having both the date of birth and the SIN, if your applicant will provide both.

2. Full previous address.

3. Cell phone or house phone number.

4. Credit card number (DON'T record the expiry date!).

The process:

1. Provide us with the necessary information by a) stopping by the office with your Application for Tenancy form, b) giving us a call with your Application in front of you, or c) faxing in the completed Application.

2. We check the Evicted Tenants List. This is a database of 1000 ex-tenants who were evicted by members of ROMS BC. If your applicant shows up on this list, we recommend you stop the process here - and you don't pay!

3. We check the Delinquent Tenants List. This is a Canada-wide database (managed by our partner Tenant Verification Services) of ex-tenants who owe $200 or more to a former landlord. Again, if your applicant shows up on this list we will recommend you stop - and you still don't pay!

4. If your applicant does not appear on the Evicted nor Delinquent Tenant Lists, we will run a TransUnion credit report. The cost for this service is $8.95 when done via fax, $11.50 when done over the phone or in-person, or if no information is found - what we call a "no hit" - you don't pay anything.

Other important information:

1. Applicants are not required to provide you with a SIN or credit card number. If they are uncomfortable providing these items, don't force them; we can still do a credit check, and requiring a SIN is illegal!

2. These credit reports take a maximum of 4 business hours to complete. Please be patient; we do over 12,000 reports each year for our members!

3. Our staff are trained in interpreting credit reports. If there is any part of the report you don't understand - or you don't know what to do with it! - simply give us a call.

4. We are also able to perform American credit checks, Canadian and American commercial credit checks, and criminal record checks; contact us for more information.

You've heard it before and I'll say it again; tenant selection is the very most important aspect of being a landlord, and your process should include a credit check. It's easy to evict bad tenants - before they move in!

-- AdviserToTheAdvisers

ROMS BC's 3rd Annual Charity Golf Tournament

2011-06-06T09:12:00.000-07:00

Join us Friday, June 24th at the Royal Oak Golf Club in Victoria to golf nine holes; either in a foursome package (to golf with whomever you choose), or individually or as a couple (with fellow members or Associate members). We will golf in a scramble format, taking the best ball each shot.

Then head inside for drinks, a gourmet buffet dinner and team and individual prizes - not to mention great company. Whether you've golfed once, twice, 100 times or never, we guarantee you'll have a good time - all for a good cause!

An individual golfer: this includes green fees, one dinnerticket, and a $30 tax receipt for your donation.

- $89 per person

A foursome team: this includes green fees for four people,four dinner tickets, and four $30 tax receipts for donations.

- $329 per team of four

Registration: 11:30 - 12:45

Pre-round golf fitness: 12:00 & 12:30

Tee time: 1:00

Dinner and prizes: approximately 5:30

To sign up or make a donation to the Next Steps Transitional Shelter, call the ROMS BC office at 250.382.6324 or 1.888.330.6707, or go to golf2011.speedsurvey.com.

Craigslist users beware!

2011-03-07T13:40:00.000-08:00

You advertised your soon to be vacant suite on Craigslist. Today you got some really great news! A person e-mailed you, saying your suite is exactly what she is looking for, however, as she is currently attending university in England, she can’t see the suite, but wants to rent it for sure. Because you can’t meet each other first, she is prepared to pay you $100 more than you are asking, plus three months’ rent in advance. She will make her recent bursary cheque, issued by the University, payable to you, so you know her payment is valid. A small detail: the cheque is for 4000 pounds, the equivalent of about $7600, so could you please mail her a cheque for the difference.

This is one of countless variations on the same theme; a scam! A potential renter doesn’t live in your city – usually the person is in Europe or Asia – is moving soon, and your place is perfect! The person wants to send you a money order, cashier’s cheque, cheque from an institution or government, etc. which invariably is for considerably more than the generous amount the person is willing to pay you.

Of course the document will prove to be bogus, but by the time you find out, you will already have sent the “change.” The old adage applies to the rental industry as it does to every other walk of life: if it seems too good to be true, it is!

-- LandlordMentor

"Just until we find a place."

2010-10-04T12:23:00.000-07:00

A. If you used the ROMS BC Tenancy Agreement, there is a very strong clause that states no additional persons can occupy the unit without your prior written consent and further that after 14 cumulative days in a calendar year, a “guest” becomes an occupant. You can give your renters a letter requiring the “cousin” and his girlfriend to leave. If they don't, you can issue a Notice to End Tenancy for breach of a material term of the tenancy agreement.

However, if you are using the government tenancy agreement form or some other agreement that doesn’t contain an “unauthorized occupants” clause, there’s very little you can do – you might be able to establish that four people is an unreasonable number of occupants (if the unit is a small, one bedroom suite) or persuade your renters to require the occupants to move, but if they don’t agree, you might be stuck with all four of them for the long term!

-- LandlordMentor

ROMS BC's Outstanding Customer Service Award

2010-08-12T11:21:00.001-07:00

Too good to be true?!

2010-07-15T15:50:00.000-07:00

You advertised your soon-to-be-vacant suite on Craigslist. Today you got some really great news! A person e-mailed you, saying your suite is exactly what she is looking for however, as she is currently attending university in England, she can’t see the suite but wants to rent it for sure. Because you can’t meet each other first, she is prepared to pay you $100 more than you are asking, plus three months’ rent in advance. She will make her recent bursary cheque - issued by the university - payable to you, so you know her payment is valid. A small detail: the cheque is for 4000 pounds, the equivalent of about $7600, so could you please mail her a cheque for the difference.

This is one of countless variations on the same theme; it’s a scam! A potential renter doesn’t live in your city – usually the person is somewhere in Europe – is moving soon and your place is perfect! The person wants to send you a money order, cashier’s cheque, cheque from an institution or government, (etc.) which invariably is for considerably more than the generous amount the person is willing to pay you.

Of course the document will prove to be bogus, but by the time you find out, you will already have sent the “change.” The old adage applies to the rental industry as it does to every other walk of life: if it seems too good to be true, it is!

-- LandlordMentor

Pay for my tenants possessions?!

2010-05-25T10:12:00.000-07:00

Q. Last week there was a sewer backup into the basement suite I rent. There was a lot of damage to the suite; enough to file an insurance claim. Our renters’ furniture and some other possessions were also damaged and they want to be compensated. Is that part of my claim to my insurance company?

A. No! Your insurance policy covers only your losses, not those of a third party. Your renters should have renters’ insurance. It usually costs less than $25 a month and also insures them against third party liability and any loss or damage to their property wherever it happens. In any event, you are not responsible to pay for their loss. That is clearly covered in the ROMS BC tenancy agreement, and supported by many court cases and dispute resolution decisions.

-- LandlordMentor

"Damage" Deposit

2010-02-08T12:06:00.000-08:00

Q. I know I can collect a half month’s damage deposit that goes toward any damage caused to the suite. Renters lose keys, so can I collect a $50 key deposit? Also, I want a deposit in case any cheques bounce. How much do you recommend I collect?

A. Whoa! Let’s go back to basics. First, the Residential Tenancy Act uses the term "security deposit" not "damage deposit" – and for good reason. A security deposit is defined as the renter’s money on deposit with the landlord against any obligation the renter may have at the end of the tenancy. That includes lost keys, late rent fees, NSF charges, or anything else that costs money and is the renter’s responsibility.

And when you request a security deposit, you cannot collect more than one half month’s rent. Having said that, if you allow pets, you can require an additional half month’s rent as a pet damage deposit. This is intended to protect you against any damage specifically caused by the pet(s).

-- LandlordMentor

"If it ain't in writing, it don't exist!"

2010-01-05T12:10:00.001-08:00

Everyone has heard LandlordMentor say this 100 times before (including his wife, who doesn't like his improper English!), but it’s an important saying regardless. This industry is built on a paper foundation and it’s important to realize that even if you have a great relationship with your tenants, most of the time you need to communicate in writing. Many people will remember the day when you signed up a tenant over a cup of coffee and a hand shake, but unfortunately those days are gone.

For almost every situation you have with your tenant, there will be a form you will need to fill out, serve, photocopy and file. It sounds like a lot of work; but it really isn't and it's well worth your time.

The most classic example of an unused form is the Caution Notice. It isn't a necessary form, but it's much easier than drafting a letter! For instance, one of your tenants has a loud party and the neighbouring tenants complain that the smoke from the party came into their unit - though it is a non-smoking building as per all tenancy agreements. You - being the "nice guy" who likes all your tenants - go to your partying tenants and politely tell them that they should keep the noise down and ensure no one smokes on the property. A week later it happens again, but this time you are not in town so you send them a text message asking them to be more careful, because this is strike two. Two weeks after the first event, the disturbed tenants tell you that the others have had yet another loud party and it is keeping up them, and the smoke is coming in the window of their new born baby's room. They also tell you that they may have to look into moving to a quieter apartment. You are starting to take this seriously, so you send the louder tenants a strongly worded email telling them that the parties and the smoking have got to stop. While you are on the computer, you make sure that they get the message by commenting on their Facebook page. Four weeks have passed from the original incident and you receive a letter from your complaining tenants. The letter explains that they really like you and the apartment, but they can’t handle the noise and the smoke and they are ending their tenancy. You now want to evict the noisy, smoky tenants but you can’t because you have not given them any formal warning - which needs to be completed before a 1 Month Notice to End Tenancy for a breach of material term can be served. This mess could go on for many more months and in the end, it is a possibility that you may not get the noisy tenants out.

How could this have been handled better? Could you have saved your good tenants?

The answer is yes, of course, and it would have been a lot easier than everything you have already done. This exact situation occurred with one of our well informed members and they dealt with it quite differently: Their tenant had a loud party and the neighbouring tenants complain that the noise kept them up all night and marijuana smoke entered their unit. Being another nice guy who likes all of their tenants, they go over to their noisy tenants and politely tell them that they should keep the noise down. They also serve a Caution Notice for the incident. By serving the Caution Notice, the noisy, smoky tenants are aware that this is serious. The notice is official and it states that if the issue is not corrected, the landlord could end their tenancy. The Caution Notice scared the noisy tenants and now they party at a friend’s house and the issue is resolved. If the Caution Notice no longer deters these party fiends and they have another disturbing, smoky party, then a 1 Month Notice to End Tenancy could be served immediately.

What’s the difference? Paper. Verbal conversations, email messages, text message, Facebook, Twitter and telepathy all count as nothing in the grand scheme of residential tenancy. If you’re unsure whether or not something should be done on paper, do it on paper and serve it properly to be sure. As everybody's Mama says, "better safe than sorry!"

-- Staff and AdviserToTheAdvisers

Retaining the security deposit

2009-12-15T08:34:00.001-08:00

We've recently had many questions regarding making an application to retain a security deposit through dispute resolution. As most of you know if you have a debt that is equal to or higher than the amount of the security deposit, the landlord is to apply to retain the deposit and hold on to it until the dispute resolution officer tells them to keep it to apply towards the debt, or to release it back to the tenant. But what if the debt is less than the security deposit?

Section 38(4) of the Residential Tenancy Act states, in part, "A landlord may retain an amount from a security or pet damage deposit if . . . (a DRO) orders that the landlord may retain the amount." Note the use of the word, "amount."

It is our interpretation that failing to return the portion of the security deposit that you do not have a claim against would entitle your tenant to double that amount, because only part of the deposit would have been dealt with within the fifteen days allowed.

--AdviserToTheAdvisers

Behind on rent increases?

2009-12-02T10:11:00.000-08:00

Q. My great renter has been on a disability pension for the last six years so I haven’t increased the rent. I recently learned that he now has a good job with the government, so would like to increase the rent. I’ve done some research and learned that BC’s rent controls limited increases to 3.7%, 3.7%, 4.0%, 4.0% and 3.8% in the last five years respectively. That’s a cumulative increase of 20.7% which is just the right amount I need to get the rent back to market rate. Do I have to use a special form to increase by this amount?

A. There is no special form because you can’t do this! The simple answer regarding rent increases is, “use it or lose it.” You are permitted to increase rents by the rent control limit once every twelve months. If – for whatever reason – you choose not to raise the rent in any given year, you cannot carry the foregone increase into a future year. Even though you haven’t raised the rent for six years, you can only raise it by 3.2 % in 2010 .

--LandlordMentor

Extra guests, or occupants?

2009-11-23T08:52:00.000-08:00

Q. A few months ago I rented my unit to a nice young couple. There have been no problems until last weekend when I received complaints from two neighbours about screaming and yelling that went on most of the night. I went to talk to them, and a stranger met me at the door. He said he was one of my renters' cousins and he and his girlfriend were staying with his cousin – “just until we find a place.” From glancing at all the furniture and other things inside the unit, I don’t think they are there temporarily, plus I spoke to one of the neighbours who said they had been there for several weeks. What can I do?

A. If you used the ROMS BC Tenancy Agreement, there is a very strong clause that states no additional persons can occupy the unit without your prior written consent and further, that after 14 cumulative days in a calendar year, a “guest” becomes an occupant. You can give your renters a letter requiring the “cousin” and his girlfriend to leave. If they don't you can issue a Notice to End Tenancy for breach of a material term of the tenancy agreement.

However, if you are using the government tenancy agreement form or some other agreement that doesn’t contain an “unauthorized occupants” clause, there’s very little you can do – you might be able to establish that four people is an unreasonable number of occupants (if the unit is a small, one bedroom suite) or persuade your renters to require the occupants to move, but if they don’t agree, you might be stuck with all four of them for the long term!

-- LandlordMentor

No more pet; now what?

2009-10-15T14:47:00.000-07:00

You agreed to rent to a couple with a dog and you collected a half month’s rent as a pet damage deposit, as permitted by the Residential Tenancy Act. Yesterday, your renters told you their dog died; they aren’t going to have any more pets, therefore they want their pet damage deposit returned. You can agree to return it, but you are permitted to keep it until the end of the tenancy along with the security deposit. The latter makes sense because it is only when the unit is empty that you will know for sure whether Fluffy did any damage to the carpet or walls.

-- LandlordMentor

Deposit for rent?

2009-10-02T08:44:00.000-07:00

Q. A few weeks ago my renters gave written notice they are leaving the end of this month. Yesterday they came with a cheque for half this month’s rent, saying I could keep the security deposit against the other half. This doesn’t seem right; now I have no security against anything they might owe me once they move out. Should I have taken the half month’s rent?

A. Yes, you should have taken the half month’s rent, however that’s not all of the answer... The Residential Tenancy Act specifically prohibits a renter from applying the security deposit to the last month’s rent, unless the landlord agrees. So let your renters know that fact; hopefully the rest of the rent will quickly be paid. If they don’t pay it you can issue a 10 day Notice to End Tenancy for Non Payment of Rent, and even apply for an Order of Possession. However, at best that Order would be effective close to the end of the month, so you wouldn’t gain much. Unfortunately, there’s no "quicker" answer to this question.

-- LandlordMentor

Where do I send the deposit?

2009-09-24T14:51:00.000-07:00

Your outgoing renters left three days early; you weren’t able to schedule a move-out inspection. The law says you have to return their security deposit, get the renters’ agreement in writing to keep some or all of it, or file for dispute resolution to claim against the deposit, but you don’t know where they are so you can’t do any of these.

You don’t have to do anything! It’s up to the renters to provide you with their forwarding address in writing. Once you receive it, then you have 15 days to take one of the above three steps. If you don’t receive their forwarding address within one year, the deposit is forfeited to you.

-- LandlordMentor

"Security" deposit, not "damage" deposit

2009-09-15T14:02:00.000-07:00

Your outgoing renters damaged a cupboard door. You said you would keep $150 from their security deposit to cover the repair costs. They said you can’t do that. They are right!

Landlords need to understand that security deposits are just that – deposits of the renters’ money with the landlord. If you had a $350 security deposit and you applied $150 to damage done during the tenancy, this means you only have $200 left at the end of the tenancy to apply to lost rent, damages to the suite, liquidated damages, unpaid utilities - you name it!

At the end of a tenancy the landlord must either return the deposit in full, get the renters’ agreement in writing to keep some or all of it, or file for dispute resolution to claim against the deposit for money owed. (Never apply to keep the deposit before the tenancy is over!)

-- LandlordMentor & AdviserToTheAdvisers

Another bill?!

2009-09-01T09:14:00.000-07:00

Surprise! You just received an invoice for $115 for a plumber to unplug a toilet in your rental unit. Do you pay it?

Because your renters didn’t notify you of the problem and give you a chance to fix it or call your own plumber, your renters are responsible for paying this bill. (Incidentally, don’t use that plumber; s/he should have contacted you to determine whether to invoice you or the renters.)

-- LandlordMentor

An easier way to show your suite

2009-07-30T12:08:00.001-07:00

Factsheet Headline

Your renters are moving; you want to show your suite to prospects. First, try to agree with your renters on blocks of time, e.g. 2 to 5 hours, 3 to 4 days a week. Confirm the agreed times in writing or by e-mail. If no agreement is reached, give your renters written notice that you will restrict the showing to within 3 to 4 blocks of time per week. 24 hours after receiving it, the notice is effective for 30 days; you don’t have to inform them in advance of each showing.

-- LandlordMentor

Lower Rent?

2009-06-11T15:26:00.000-07:00

It’s not something you hear about in the news, but Landlords have hearts too! With the current economic downturn, people are facing a scary world that threatens our basic needs. People are forced to choose between shelter and food or paying the gas bill, and landlords are not immune to this either. Most have normal day jobs that are just as fragile as everyone else's, but some are in a position to help where they can. Tenants are asking for rent reductions, generally for a couple of months while they get back on their feet. It is not expected that every landlord should reduce their rents, but there are some who can and will. The question is not whether or not you should do this; it's up to each individual landlord. This is something that only you can decide, but how to properly help these people without permanently affecting your income is something to be cautious of.

Should you find that you are willing and able to do what you can to help, be sure to adhere to these rules. In a perfect world, you could just tell your tenant that they can pay $100 less for three months, shake hands, and in three months you would have your standard rent again, but unfortunately this isn’t the case. Its not a perfect world; it’s a paper world that has correct procedures and regulations, but its surprisingly easy and quick to help out your tenants. The easiest method is to offer a "rent rebate." In this case, the tenant pays you the whole amount of their rent, and you pay them back the amount you choose. By using this method the rent paid is still the original amount, thus eliminating you being stuck with low rent in the future.

-- Staff and AdviserToTheAdvisers

Finding a new tenant...

2009-03-31T09:41:00.000-07:00

Owner: When checking references on a tenancy applicant, how can I tell whether the previous landlord is legitimate or a friend of the tenant?

LandlordMentor: Ask this question: “Can you confirm the address (with postal code)?”

Owner: I held an open house for my vacant rental unit and eight different people came. How do I pick the right one?

LandlordMentor: You can’t! Open houses are for attracting purchasers, not renters. Schedule only one potential applicant, couple, (etc.) at a time so you can interview them during the showing, watch how they react to the unit, and listen to what they say.

Owner: I schedule suite showings and over half the people don’t show up.

LandlordMentor: When scheduling showings, tell your prospects to phone you about one hour before to confirm and tell them that if they don’t, you won’t show up.

Owner: I give out application forms to tenancy applicants and they either don’t return them or don’t answer all the questions.

LandlordMentor: The application stage is your best opportunity to learn about your potential tenants. Don’t give out the form; instead, sit down with your applicants right after the suite showing and interview them to get all the answers, filling out the form yourself, which they then read and sign.

"Green" Apartment Living

2009-03-09T14:23:00.000-07:00

Living an apartment does not always lend itself to a green lifestyle. Rules and regulation with large buildings often prevent people from making those decisions that might be beneficial to the environment, but landlords can do their part and make life a little bit easier without much strain on themselves and the building:

1. Many people like to bike to work, but most don’t have a place to store their bicycle. Bringing bikes into apartment units can track in dirt and take up space, and most buildings don’t want bikes left in the hallway or in patio areas. A simple solution is to have a designated bicycle storage area on the main floor or outside. Bikes don’t take up a lot of space and tenants are still responsible for the security of their own bike.

2. Most apartment buildings have at least one garbage can in the entry common area, but few make the effort to put in a recycling bin as well. If there is a recycling bin at the entrance to your building, it will hopefully encourage your tenants to be "green" as well as reduce the amount of garbage you have to deal with.

3. The Cancer Society, Saint Vincent De Paul and Big Brother Big Sister all pick up donations of clothes and household goods, making it simple to have your clothes re- used by people less fortunate. Living in an large building puts a bit of a "kink" in the system as bags of clothing in a common area will become unsightly. A way to solve this problem and promote donations is to designate one day every couple of months that is designated as a "donation day" for a specific cause.

4. Many apartment buildings don't have space for a standard composter, but that doesn't mean your tenants can't take part! The first option for composting in small units is called vermi composting, and yes - it is a bin of worms! This is becoming more and more popular as the bins don't take up much space and it is a very fast way to turn your organic waste into rich soil. The second option is simple; you need a bucket, soil and oxygen... All you will need to do is put two or three tablespoons of rich, moist soil into your bucket, and you are ready to compost! If you choose to compost only natural waste (vegetables, fruit and coffee and tea grinds), simply mix the contents of the bucket (gently) and you will eventually end up with a scent-free compost under your sink.

For more tips and ideas, watch for April/May's "Green" Top Storey.

-- Staff and AdviserToTheAdvisers

No Hearing = Order of Possession

2009-02-02T15:43:00.000-08:00

Hooray! No more waiting two to three months to evict the tenant who chooses not to pay the rent. If a tenant doesn’t pay the full rent within five days after receiving a (new!) 10 day Notice to End Tenancy, the landlord can apply for a “Direct Request” Order of Possession. The landlord must submit certain documents that will be reviewed by a Dispute Resolution Officer, who will then issue an Order of Possession in a couple of days, with no hearing being held.

-- LandlordMentor

Think You Can Top These?

2009-01-23T10:13:00.000-08:00

Following are actual excuses that landlords have received for not paying the rent.

"I apologize; in an absent minded moment (and I have had plenty lately), I mailed 3/4 of my bills last month without stamps. I'm not even sure if they're the correct stamps. I hope I can get my act together next month! I'm also sorry I haven't called you. I don't get home from work until after 8 and it’s usually closer to 11."

"I can't even sleep. My dogs are keeping half the neighborhood up every night. How am I supposed to keep a job if I can't sleep?"

"I just found out you own this house free and clear! You've been profiting off me all this time?!"

"My previous landlord found me. He made me make a payment towards my balance."

"Do you co-operate with credit counseling to lower my monthly payment?"

"Carl got arrested and moved out. I hope you don't expect me to pay his share too."

"I had this nightmare... This house is giving me a bad feeling. I think it's haunted."

"I've been trying to call you all day so you can come and pick up the rent monies, but there was no answer so I spent it."

"My husband accidentally dropped a lotion bottle in the toilet. He and the plumber had the toilet on the front lawn until my husband, who is a chef, got out the bottle with his long fork. So we paid a plumber $135 to have a chef fix the toilet."

"We ran out of blue envelopes."

"I don't have the rent money, but I ordered a pizza to be delivered to your family."

"I didn't get my child support check and I think your former tenant stole it. I would like to have the mailboxes moved inside the building."

"My wife's mother is sick, and if she dies, I'll have it all next week."

"A car hit the house and made our food go bad."

"The mailbox is broken."

Even if this not-so-wonderful situation has occurred in your life, I still hope you can have a chuckle at these. Do you think you can top these? Post, and we'll find out!

--AdviserToTheAdvisers

“I am putting my house up for sale. How do I evict the tenants?”

2009-01-16T10:21:00.000-08:00

You don’t! From your tenants’ perspective, why should they lose their home because you plan to sell the building? IF you have a clean purchase sale agreement, i.e. all conditions and subjects to removed, and IF the purchaser plans in good faith to move in to the house or the unit occupied by your tenants and IF the purchaser requests in writing that you do so, only THEN can you issue a two months notice to end tenancy for landlord occupancy.

-- LandlordMentor

Welcome!

2009-01-05T15:47:00.000-08:00

Welcome to our blog – information for and dialogue among BC’s residential landlords. What question do you have? What’s your pet peeve as a landlord? How do you find – and keep – good renters?

LandlordMentor and AdviserToTheAdvisers have many answers and – like any good mentors or advisors – are always learning more.

Who is LandlordMentor? He is CEO of the Rental Owners and Managers Society of BC for 11 years, previously corporate real estate executive, labour negotiator, human resources professional and – in the dark ages – RCMP Officer.

Who is AdviserToTheAdvisers? She is the Member Service Manager, in the service industry for nearly 10 years, who is in charge of all advice and service that leaves the ROMS BC office.

"Can I pay you on the 23rd? I just bought a new laptop and it cost a little more than I thought. Sorry."

"Man, is it a new month already? Wow."

Do you have to put up with these excuses – and the more creative ones? In a word, NO! Rent is due on the first of the month; that doesn’t mean the second! You can issue a Notice to End Tenancy on the second and your renter then has five calendar days to pay the full rent, or move out!

Want to learn more? Go to www.romsbc.com or post here.
Happy Day!

-- LandlordMentor