Difference between revisions of "Repair and Service of Tenant’s Residence (19:V)"

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{{REVIEWED LSLAP | date= August 2, 2023}}
{{LSLAP Manual TOC|expanded = landlord}}
{{LSLAP Manual TOC|expanded = landlord}}
Chapter 6 SECURITY DEPOSITS




=A. General=


A requirement that a tenant pay a security deposit is an express term of the model agreement. Security deposit is defined in s 1 of the RTA very broadly. It can include money or property or almost any other item of value to be held by a landlord for the purpose of securing the performance of a tenant’s obligations under the agreement and the RTA (e.g. the payment of rent and the obligation to leave the rental unit in the same condition they were received). A security deposit is a deposit which may cover a variety of costs to the landlord: see Balfour v. Thomson, Vancouver Registry F771652 (BC Co Ct). A security deposit does not include: a post-dated cheque for rent, a pet damage deposit, or a fee prescribed under RTR ss 6 and 7. See RTB Policy Guideline 29: Security Deposits.
== '''A. Duty to Provide and Maintain Rental Unit in Repair''' ==


A landlord can only request a security deposit from a tenant as a condition of entering into a tenancy agreement, not after the agreement has been formed. However, pursuant to s 20, if a landlord permits a tenant to keep a pet on the residential property the landlord may require the tenant to pay a pet damage deposit in accordance with s 19 at the time the tenant moves in with a pet, or at the time a tenant acquires a pet.
=== 1. Landlord ===


=B. Requirements Under the RTA=
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.
==1. Amount==


A security deposit demanded or received must not exceed one half of the monthly rent (RTA, s 19(1)). Only one security deposit can be required for each rental unit (s 20(b)). A landlord can also ask for an additional ½ month rent as a pet damage deposit (s 19(2)). The tenant may, with the landlord’s written permission, set off all or part of a security deposit against the rent that is due from him or her (s 21). Any excess security deposit paid (more than ½ of the amount payable as rent at the beginning of the tenancy) to the landlord may be set off by the tenant, presumably without the landlord’s permission (s 19(2)). Failure to pay a lawful security deposit is a ground for ending the tenancy (s 47(1)(a)). The landlord may give a one-month end of tenancy notice if the tenant fails to pay the security deposit within 30 days.
A landlord is responsible for repairing:
* the rental structure, and roof;
* heating, plumbing, electricity;
* locks, walls, floors, ceilings;
* fire doors, and fire escapes;
* intercoms, elevators; and
* anything else included in a tenant’s rent if identified in the tenancy agreement.


==2. Inspection Reports==
If a landlord is required to make a repair to comply with the above obligations, the tenant should 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 to pay for the damage.


The RTA requires landlords and tenants to do move-in (ss 23 and 24) and move-out (ss 35 and 36) condition inspection reports. The rights to the security deposit of a landlord or tenant who does not participate in the condition inspection process may be extinguished.
When a tenant goes to the RTB to request a repair order, they may also request a rent reduction until the repair is complete. The ''RTA'' states that a tenant must pay their rent in full and on time, regardless of whether the tenant believes the landlord has fulfilled their obligations. A tenant can only make deductions from their rent if they are expressly authorized to do so under a provision of the ''RTA'' (such as where a tenant has previously overpaid rent) or if an RTB Arbitrator orders that they may do so.


=C. Return of Security Deposit and Pet Damage Deposit=
Landlords are generally responsible for arranging and paying for bed bug treatment. According to section 32 of the Residential Tenancy Act, landlords must ensure that their rental property is suitable for occupation and compliant with health, safety, and housing standards required by law. In addition, Residential Tenancy Branch Policy Guideline 1 says, “the landlord is generally responsible for major projects, such as … insect control.” If your landlord believes that you caused the infestation, they should still pay for treatment within a reasonable period of time, and then seek to recover compensation from you after the fact.


When a tenant moves out, he or she must provide his or her landlords with a forwarding address in writing. The security deposit must be returned to the tenant, with interest, or the landlord must file for dispute resolution to retain the deposit, within 15 days after the date at which the tenancy ends, or the date the landlord receives the tenant’s forwarding address, which must be in writing, whichever is later.
=== 2. Tenant ===


If a landlord does not comply with s 38(1) of the RTA (fails to return deposits within 15 days, and fails to file for dispute resolution) and the tenant still has a valid right to the deposit, the tenant may apply for dispute resolution, the landlord may not make a claim against the security deposit or any pet damage deposit, and must pay the tenant double the amount of the security deposit, pet damage deposit, or both (s 38(6)).
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 willful or negligent acts or omissions, or those of a person permitted by them on the rental unit or property (''RTA'' s 32(3)). '''There is no duty to repair reasonable wear and tear''' (s 32(4)).
Leases may not include a term providing that the landlord automatically keeps all or part of the deposit at the end of a tenancy.


Changes have been passed, but not yet brought into force as of the time of writing, allowing landlords to repay security deposits by electronic funds transfer, in addition to the former cheque or personal service methods. For more information on whether the changes have been brought into force, consult the RTB.
Tenants are also obligated to maintain the property in a sanitary condition. This includes notifying the landlord of any suspected pest infestation. Upon discovery of a pest 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 pests with them when they moved in.  


==1. Interest on Security Deposit==
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.


Interest on a security deposit is calculated from the date the tenant pays the deposit to the day before the security deposit is paid back to the tenant. If the deposit is disputed at dispute resolution, the interest is calculated from the date the tenant paid the deposit up until the date the Arbitrator orders its return (usually the date of the hearing).
== '''B. Withholding Rent''' ==


Interest on a security deposit is calculated as follows. For each one-year period beginning on January 1, the rate will be 4.5% below the prime lending rate of the principal banker to the province on January 1st of that year, compounded annually. The current and past rates are:
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) or fire problems (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 a reduction in rent.


Jan 1/2009 - Dec 31/2015 - 0.00% compounded annually
:'''NOTE:''' There is a '''risk''' attached to calling a City Inspector. The inspection could result in the municipality ordering the suite vacated, resulting in eviction for the tenants.
Jan 1/2008 - Dec 31/2008 - 1.50% compounded annually
Jan 1/2006 - Dec 31/2007 - 0.50% compounded annually
Jan 1/2002 - Dec 31/2005 - 0.00% compounded annually
Jan 1/2001 - Dec 31/2001 - 3.00% compounded annually
Jan 1/2000 - Dec 31/2000 - 2.00% compounded annually
Jan 1/99 - Dec 31/99 - 2.25% compounded annually
Jan 1/98 - Dec 31/98 - 1.50% compounded annually
Jan 1/97 - Dec 31/97 - 0.25% compounded annually
Jan 1/96 - Dec 31/96 - 3.00% compounded annually
Jan 1/95 - Dec 31/95 - 3.50% compounded annually
Jan 1/94 - Dec 31/94 - 1.00% compounded annually
Jan 1/93 - Dec 31/93 - 2.75% compounded annually
Jan 1/92 - Dec 31/92 - 3.50% compounded annually
Jan 1/91 - Dec 31/91 - 8.25% compounded annually
Jan 1/90 - Dec 31/90 - 9.00% compounded annually
Jan 1/89 - Dec 31/89 - 7.75% compounded annually
Jan 1/88 - Dec 31/88 - 5.25 % compounded annually
Feb 1/87 - Dec 31/87 - 5.25% compounded the last day of that period
July 1/84 - Jan 31/87 - 8.00% per annum
April 1/83 - June 30/84 - 8.00% compounded annually
June 1/80 - March 31/83 - 12.00% compounded annually
Dec 1/74 - May 31/80 - 8.00% compounded annually


NOTE: A tenant has only one year from the time the tenancy ends to supply the landlord with his or her forwarding address. If the tenant fails to forward the address within the one year limit the landlord may retain the security or pet damage deposit or both.
== '''C. Emergency Repairs''' ==


The RTB website provides a Deposit Interest Calculator which calculates the interest payable on a security deposit during any specific time period:
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, they 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:
www.rto.gov.bc.ca/content/calculator/calculator.aspx.


NOTE: A landlord does not have to return a deposit within 15 days if the tenant’s right to the return of the deposit (pet or security) has been extinguished for failing to participate in the condition inspection procedures.
* major leaks in the pipes or roof;
* 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.


NOTE: A pet damage deposit may be used only for damage caused by a pet to the residential property, unless the tenant agrees otherwise.
Tenants must follow the exact procedure under s 33(3) of the ''RTA'', or the landlord can make a claim against the tenant, or serve a 10-day notice to end tenancy for non-payment of rent. 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.


=D. Extra Deposits and Non-Refundable Fees=
== '''D. Terminating or Restricting Services or Facilities''' ==


The RTA allows landlords to charge a deposit for additional access devices (a device so long as it is not a tenant’s only means of entry to one’s building).
A service or facility, as defined in s 1 of the ''RTA'', applies to any of the following that are provided or agreed to be provided to the tenant by the landlord:
:(a) Appliances and furnishings;
:(b) Utilities and related services;
:(c) Cleaning and maintenance services;
:(d) Parking spaces and related facilities;
:(e) Cablevision facilities;
:(f) Laundry facilities;
:(g) Storage facilities;
:(h) Elevators;
:(i) Common recreational facilities;
:(j) Intercom systems;
:(k) Garbage facilities and related services;
:(l) Heating facilities or services
:(m) Housekeeping services


Administration fees for returned cheques ($25) or moving between rental units on a single property can only be charged if the tenancy agreement specifically allows for it (RTR, s 7(1)(d)).
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.
==1. Allowable Non-Refundable Fees==


*Direct costs of replacement keys;
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.
*Direct costs of any additional keys that a tenant requests;
 
*Bank service fees for NSF cheques plus a maximum late fee of $25; and
See RTB Policy Guideline 22: Termination or Restriction of a Service or Facility.
*Parking fees.
 
 
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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. Duty to Provide and Maintain Rental Unit in Repair

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.

A landlord is responsible for repairing:

  • the rental structure, and roof;
  • heating, plumbing, electricity;
  • locks, walls, floors, ceilings;
  • fire doors, and fire escapes;
  • intercoms, elevators; and
  • anything else included in a tenant’s rent if identified in the tenancy agreement.

If a landlord is required to make a repair to comply with the above obligations, the tenant should 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 to pay for the damage.

When a tenant goes to the RTB to request a repair order, they may also request a rent reduction until the repair is complete. The RTA states that a tenant must pay their rent in full and on time, regardless of whether the tenant believes the landlord has fulfilled their obligations. A tenant can only make deductions from their rent if they are expressly authorized to do so under a provision of the RTA (such as where a tenant has previously overpaid rent) or if an RTB Arbitrator orders that they may do so.

Landlords are generally responsible for arranging and paying for bed bug treatment. According to section 32 of the Residential Tenancy Act, landlords must ensure that their rental property is suitable for occupation and compliant with health, safety, and housing standards required by law. In addition, Residential Tenancy Branch Policy Guideline 1 says, “the landlord is generally responsible for major projects, such as … insect control.” If your landlord believes that you caused the infestation, they should still pay for treatment within a reasonable period of time, and then seek to recover compensation from you after the fact.

2. Tenant

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 willful or negligent acts or omissions, or those of a person permitted by them on the rental unit or property (RTA s 32(3)). There is no duty to repair reasonable wear and tear (s 32(4)).

Tenants are also obligated to maintain the property in a sanitary condition. This includes notifying the landlord of any suspected pest infestation. Upon discovery of a pest 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 pests 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.

B. Withholding Rent

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) or fire problems (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 a reduction in rent.

NOTE: There is a risk attached to calling a City Inspector. The inspection could result in the municipality ordering the suite vacated, resulting in eviction for the tenants.

C. Emergency Repairs

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, they 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;
  • 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.

Tenants must follow the exact procedure under s 33(3) of the RTA, or the landlord can make a claim against the tenant, or serve a 10-day notice to end tenancy for non-payment of rent. 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.

D. Terminating or Restricting Services or Facilities

A service or facility, as defined in s 1 of the RTA, applies to any of the following that are provided or agreed to be provided to the tenant by the landlord:

(a) Appliances and furnishings;
(b) Utilities and related services;
(c) Cleaning and maintenance services;
(d) Parking spaces and related facilities;
(e) Cablevision facilities;
(f) Laundry facilities;
(g) Storage facilities;
(h) Elevators;
(i) Common recreational facilities;
(j) Intercom systems;
(k) Garbage facilities and related services;
(l) Heating facilities or services
(m) Housekeeping services

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.

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.

See RTB Policy Guideline 22: Termination or Restriction of a Service or Facility.


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