Difference between revisions of "Rent Increase in Residential Tenancies (19:VI)"

Latest revision as of 20:14, 8 August 2023

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 2, 2023.

A. Payment and Non-payment of Rent

1. Cash Payment Rules

Section 26(2) of the RTA provides that a landlord must provide a tenant with a receipt for rent paid in cash. If a tenant makes a cash payment and receives no receipt, the tenant should send a letter to the landlord confirming the payment or pay with a witness present.

2. Non-Payment of Rent

Whether or not a tenant pays rent in accordance with the tenancy agreement, a landlord must not seize any personal property of the tenant or prevent or interfere with the tenant’s access to the tenant’s personal property (RTA, s 26(3)). The only exceptions are if the landlord has a court order authorizing the action, or if the tenant has abandoned the rental unit and the landlord complies with the regulations: see RTA s 26 (4)(a) and (b).

B. Rent Increases and Notice

Landlords can raise rents by a set amount each year and can apply for rent increases above that amount (RTA, s 43(1)). A tenant may also agree to pay a greater increase than the percentage permitted; this agreement must be in writing. If the tenant does not agree, the landlord may apply for an additional rent increase (RTA s 43 (3)). The percentage for allowable rent increases is usually the inflation rate (Consumer Price Index, or “CPI”), but it is limited to only 2% for 2023. The maximum allowable increase changes each year on January 1st and is posted on the Rent Increase webpage (http://bit.ly/1cWKrDB). A landlord can only impose a rent increase 12 months after the date on which the tenant's rent was first payable for the rental unit or the effective date of the last rent increase (s 42(1)). A tenant may not apply for dispute resolution to dispute a rent increase that complies with s 43(1). If a landlord collects a rent increase that does not comply with the RTA, the tenant may deduct the entire increase from the rent. The tenant should communicate the reason for the deduction to the landlord before taking this form of action.

The landlord must give written notice of a rent increase at least three full months before the increase becomes effective (s 42(2)). If the notice of rent increase is not written in the approved form, it is invalid and of no effect. If the landlord gives notice of less than three months, or if the increase is to take effect less than 12 months from when the tenant moved in, or from when the tenant’s rent was last increased, the original notice will self-correct and will take effect on the earliest lawful date, provided it is otherwise correct. The tenant should notify the landlord about any self-correcting dates.

Section 43(3) of the RTA permits landlords to apply for an order allowing a rent increase greater than otherwise allowed under s 43(1). The circumstances under which these applications may be made are set out in ss 23-23.4 of the Regulations, and include:

the landlord, acting reasonably, has incurred a financial loss for the financing costs of purchasing the residential property if the financing costs could not have been foreseen under reasonable circumstances;
the landlord, as a tenant, has received an additional rent increase under this section for the same rental unit; or
the landlord, in the 18 months preceding the application, made a significant capital expenditure incurred for the purpose of installing, repairing, or replacing a major system of component of the rental property.

NOTE: The purpose of the expenditure must be necessary to a) comply with health and safety standards, b) repair or replace a malfunctioning or inoperative system or component, c) reduce energy usage or greenhouse gas emissions, or d) improve the security of the residential property.

NOTE: Applications shall not be granted where the need for the capital expenditure arose because of inadequate repair or maintenance on the part of the landlord, or where the landlord has been paid from another source. Capital expenditures may not be claimed again for at least 5 years.

The rent increase formula for Manufactured Home Parks is inflation plus the proportionate amount of the increases to regulated utilities and local government levies.

C. New Lease with Same Tenant and Location

A landlord and tenant may agree to renew a fixed-term tenancy agreement with or without changes, for another fixed term. If a tenancy does not end at the end of the fixed term and no new agreement is entered into, the tenancy automatically continues as a month-to-month tenancy on the same terms. Rent can only be increased between fixed-term tenancy agreements with the same tenant if the notice and timing requirements for rent increases are met.

D. Hidden Rent Increases

The tenant can apply to an Arbitrator under s 27 of the RTA, if the landlord starts to charge the tenant for a service or facility previously included in the rent (e.g. for cable television or laundry that was previously free), or takes away a service or facility previously enjoyed by a tenant (e.g. stops providing cable television or laundry that was previously included in the rent, without decreasing the rent proportionately).

If the Arbitrator considers that the failure or reduction has resulted in a reduction of the use and enjoyment of residential premises or of the service or facility, the Arbitrator can provide relief (e.g., allowing the tenant to pay less rent, or ordering the service or facility restored). See also RTB Policy Guideline 22: Termination or Restriction of a Service or Facility.

E. Subsidized Housing

Persons living in publicly subsidized housing paying rent on a scale geared to their income are excluded from the rent increase provisions. They are also excluded from s 34 of the RTA, which deals with assignment and subletting. Not all subsidized housing is directly operated by the B.C. Housing Corporation. For a list of subsidized housing options and to apply for subsidized housing, visit: https://www.bchousing.org/housing-assistance/rental-housing/subsidized-housing.

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+{{REVIEWED LSLAP | date= August 2, 2023}}
 {{LSLAP Manual TOC|expanded = landlord}}
-CHAPTER 7 REPAIR AND SERVICE
+== '''A. Payment and Non-payment of Rent''' ==
-=A. Duty to Provide and Maintain Rental Unit in Repair=
+=== 1. Cash Payment Rules  ===
-==1. Landlord==
-Sections 32(1)(a) and (b) of the RTA provide that a landlord must provide and maintain residential property in a state of decoration and repair that complies with the health, housing and safety standards required by law, and having regard to the age, character and location of the rental unit. It must be suitable for tenant occupation. With respect to a landlord’s obligation to repair, the RTR Schedule states that the landlord must provide and maintain the residential property in a reasonable state of decoration and repair, suitable for occupation by a tenant.
+Section 26(2) of the ''RTA'' provides that a landlord must provide a tenant with a receipt for rent paid in cash. If a tenant makes a cash payment and receives no receipt, the tenant should send a letter to the landlord confirming the payment or pay with a witness present.
-A landlord is responsible for repairing:
+=== 2. Non-Payment of Rent===
-*the rental structure, and roof;
+Whether or not a tenant pays rent in accordance with the tenancy agreement, a landlord must not seize any personal property of the tenant or prevent or interfere with the tenant’s access to the tenant’s personal property (''RTA'', s 26(3)). The only exceptions are if the landlord has a court order authorizing the action, or if the tenant has abandoned the rental unit and the landlord complies with the regulations: see ''RTA'' s 26 (4)(a) and (b).
-*heating, plumbing, electricity;
-*locks, walls, floors, ceilings;
-*fire doors, and fire escapes;
-*intercoms, elevators; and
-*anything else included in a tenant’s rent, if so identified in the tenancy agreement.
-If a landlord is required to make a repair to comply with the above obligations, the tenant should be advised to notify the landlord of the need for repair (preferably in writing). If the landlord refuses to make the repair, the tenant may seek an Arbitrator’s order. If the tenant fails to notify the landlord and substantial damage results from the lack of repair, the tenant may have breached his or her duty.
+== '''B. Rent Increases and Notice''' ==
-When a tenant goes to the RTB to request a repair order, they may also request for a rent reduction until the repair is complete.
+Landlords can raise rents by a set amount each year and can apply for rent increases above that amount (''RTA'', s 43(1)). A tenant may also agree to pay a greater increase than the percentage permitted; this agreement must be in writing. If the tenant does not agree, the landlord may apply for an additional rent increase (''RTA'' s 43 (3)). The percentage for allowable rent increases is usually the inflation rate (Consumer Price Index, or “CPI”), but it is limited to only 2% for 2023. '''The maximum allowable increase changes each year on January 1st''' and is posted on the Rent Increase webpage (http://bit.ly/1cWKrDB). A landlord can only impose a rent increase 12 months after the date on which the tenant's rent was first payable for the rental unit or the effective date of the last rent increase (s 42(1)). A tenant may not apply for dispute resolution to dispute a rent increase that complies with s 43(1). If a landlord collects a rent increase that does not comply with the ''RTA'', the tenant may deduct the entire increase from the rent. The tenant should communicate the reason for the deduction to the landlord before taking this form of action.
-==2. Tenant==
+The landlord must give written notice of a rent increase at least three full months before the increase becomes effective (s 42(2)). If the notice of rent increase is not written in the approved form, it is invalid and of no effect. If the landlord gives notice of less than three months, or if the increase is to take effect less than 12 months from when the tenant moved in, or from when the tenant’s rent was last increased, the original notice will self-correct and will take effect on the earliest lawful date, provided it is otherwise correct. The tenant should notify the landlord about any self-correcting dates.
-Tenants must maintain “ordinary health, cleanliness and sanitary standards” in their rental unit. Tenants must also repair damage caused to the rental unit and property (this includes common areas) by their or their pet’s wilful or negligent acts or omissions, or those of a person permitted by him or her on the rental unit or property (RTA, s 32(3)). There is no duty to repair reasonable wear and tear (s 32(4)).
+Section 43(3) of the ''RTA'' permits landlords to apply for an order allowing a rent increase greater than otherwise allowed under s 43(1). The circumstances under which these applications may be made are set out in ss 23-23.4 of the Regulations, and include:
-=B. Withholding Rent=
+*the landlord, acting reasonably, has incurred a financial loss for the financing costs of purchasing the residential property if the financing costs could not have been foreseen under reasonable circumstances;
-A tenant cannot withhold rent because of repairs needed unless an Arbitrator gives an order permitting it. Another way to seek repairs can be through the local municipality’s Standards of Maintenance bylaw however this is only the case in some municipalities, for example, Vancouver, the City of North Vancouver, and New Westminster. Tenants should check with the municipality to see if there is a Standards of Maintenance bylaw in place. A tenant can call a local municipality and ask for a free inspection if the repair problem relates to structural defects (requiring a building inspector), health problem (e.g. mould or pests), or fire problem (e.g. fire inspection for fire exits, smoke alarms). The inspection may result in a formal report and may require the landlord to conduct repairs. The inspection report can also be important evidence to present at an RTB dispute resolution when seeking a Repair Order or an Order for reduction in rent.
+*the landlord, as a tenant, has received an additional rent increase under this section for the same rental unit; or
+*the landlord, in the 18 months preceding the application, made a significant capital expenditure incurred for the purpose of installing, repairing, or replacing a major system of component of the rental property.
-NOTE:	There is a risk attached to calling a City Inspector. The inspection could result in the municipality ordering the suite vacated, resulting in an eviction for the tenants.
+:'''NOTE:''' The purpose of the expenditure '''must''' be necessary to a) comply with health and safety standards, b) repair or replace a malfunctioning or inoperative system or component, c) reduce energy usage or greenhouse gas emissions, or d) improve the security of the residential property.
-=C. Emergency Repairs=
+:'''NOTE:''' Applications shall not be granted where the need for the capital expenditure arose because of inadequate repair or maintenance on the part of the landlord, or where the landlord has been paid from another source. Capital expenditures may not be claimed again for at least 5 years.
-Before advising any tenant on this course of action, an advocate should be aware that this is a rather complicated area. To qualify, the repairs must fall into the categories below, and must be urgent and necessary for the health and safety of persons or the preservation and use of the property and rental units. Pursuant to s 33, a tenant may conduct emergency repairs without going to dispute resolution if the landlord fails to make repairs within a reasonable time after a tenant has made a reasonable effort on two or more occasions to contact the landlord. Sometimes there is a discrepancy between what a tenant, landlord, and RTB might consider ‘emergency’ repairs. Before a tenant conducts any repairs, he or she should call the Residential Tenancy Branch, speak to an Information Officer, and make note of the Officer’s name and what the Officer tells them. The specific types of repairs that may qualify as emergency repairs are urgent, necessary for the health, safety or preservation of property AND concern:
-*major leaks in the pipes or roof;
+The rent increase formula for Manufactured Home Parks is inflation plus the proportionate amount of the increases to regulated utilities and local government levies.
-*damaged or blocked water or sewer pipes or plumbing fixtures;
-*malfunction of the central or primary heating system;
-*defective locks that give access to the residential premises;
-*electrical system repair.
-Emergency repair is a complicated area. Tenants must follow the exact procedure under s 33(3) of the RTA or the landlord can make a claim against the tenant. All steps taken should be documented fully. Emergency repairs usually constitute a large repair bill and should only be undertaken by the tenant in the clearest of circumstances. When in doubt, apply first to an Arbitrator for a Repair Order, refer to a Property Use Inspector, or investigate local Standards of Maintenance bylaws.
+== '''C. New Lease with Same Tenant and Location''' ==
-=D. Terminating or Restricting Services or Facilities=
+A landlord and tenant may agree to renew a fixed-term tenancy agreement with or without changes, for another fixed term. If a tenancy does not end at the end of the fixed term and no new agreement is entered into, the tenancy automatically continues as a month-to-month tenancy on the same terms. Rent can only be increased between fixed-term tenancy agreements with the same tenant if the notice and timing requirements for rent increases are met.
-A service or facility, as defined in s 1 of the RTA, includes: furniture, appliances and furnishings; parking and related facilities; cable television facilities; utilities and related services; cleaning or maintenance services; maid services; laundry facilities; storage facilities; elevator facilities; common recreational facilities; intercom systems; garbage facilities and related services; and heating facilities or services.
+== '''D. Hidden Rent Increases''' ==
-Sections 27(1)(a) and (b) of the RTA provides that a landlord must not terminate or restrict a service or facility if it is essential to the tenant’s use of the rental unit as living accommodation, or providing the service or facility is a material term of the tenancy agreement.
+The tenant can apply to an Arbitrator under s 27 of the ''RTA'', if the landlord starts to charge the tenant for a service or facility previously included in the rent (e.g. for cable television or laundry that was previously free), or takes away a service or facility previously enjoyed by a tenant (e.g. stops providing cable television or laundry that was previously included in the rent, without decreasing the rent proportionately).
-Section 27(2) of the RTA provides that a landlord may terminate or restrict a service or facility other than one referred to in ss 27(1)(a) or (b) if the landlord gives 30 days written notice, in the approved form, of the termination or restriction, and reduces the rent in an amount that is equivalent to the reduction in the value of the tenancy agreement resulting from the termination or restriction of the service or facility. The tenant may dispute the restriction or termination on the basis that the service being restricted or terminated constitutes an essential service.
+If the Arbitrator considers that the failure or reduction has resulted in a reduction of the use and enjoyment of residential premises or of the service or facility, the Arbitrator can provide relief (e.g., allowing the tenant to pay less rent, or ordering the service or facility restored).  See also RTB Policy Guideline 22: Termination or Restriction of a Service or Facility.
-See RTB Policy Guideline 22: Termination or Restriction of a Service or Facility.
+== '''E. Subsidized Housing''' ==
-=E. Bedbugs=
+Persons living in publicly subsidized housing paying rent on a scale geared to their income are excluded from the rent increase provisions. They are also excluded from s 34 of the ''RTA'', which deals with assignment and subletting. Not all subsidized housing is directly operated by the B.C. Housing Corporation. For a list of subsidized housing options and to apply for subsidized housing, visit:
+https://www.bchousing.org/housing-assistance/rental-housing/subsidized-housing.
-Bedbugs are an increasing problem in British Columbia, particularly in the West End and Downtown Eastside of Vancouver. Bedbugs are small (about 1/5 inch long) parasites that tend to live in and around bed frames, cracks in walls, along baseboards, and under carpet edges. They are active at night, coming out to feed on sleeping people before returning to their crevices and crannies. Bedbugs are extremely difficult to get rid of, and the extermination process can be frustrating for both landlords and tenants.
-==1. Landlord Obligations==
+{{LSLAP Manual Navbox|type=chapters15-23}}
-Under s 32(1) of the RTA, landlords must maintain the property in a state of repair that complies with health standards and is suitable for human occupation. Although bedbugs are not a public health risk (they do not transmit infectious diseases), they are still considered a pest and an infestation creates unsuitable living conditions. Some municipalities, such as Vancouver, have Standards of Maintenance bylaws that require landlords to get rid of pest infestations. If a landlord is refusing to treat the infestation, a tenant can call their municipality for an inspection and for an order that the building be treated. Each municipality’s bylaws will vary, so it is best to call city hall.
-Landlords are obligated to bear the cost for treatment of an infestation, provided the tenant cooperates with treatment (see Tenant Obligations below). In Vancouver, the Health Bylaw mandates that only a trained and certified person can spray pesticides in a multiple-unit dwelling. The landlord should not, and legally cannot, do it themselves. There are also other requirements in the Health Bylaw, such as notification in writing 72 hours prior to spraying. The pesticide technician should also adhere to the label on the pesticide bottles.
-==2. Tenant Obligations==
-Under s 32(2) of the RTA, the tenant is also obligated to maintain the property in a sanitary condition. This includes notifying the landlord of any suspected infestation. Upon discovery of a bedbug infestation, the tenant is obligated to cooperate with the landlord in treating the infestation. If tenants do not cooperate, they could be found liable for the cost of treatment, or be evicted.  The landlord is obligated to get rid of the infestation unless it can be proven the tenant brought the bedbugs with them when they moved in.
-If a landlord refuses to have the suite or building treated, the tenant can apply to the RTB for an order compelling the landlord to do so, or as noted above can get an order from a city inspector. Vancouver Coastal Health no longer does inspections, but is available to answer questions over the phone at 604-675-3800.