How The Landlord and Tenant Law (Residential Tenancy Act) Applies To You As An Investor

As an investor, Landlord and tenant law will likely have some affect on you in that you will have a few properties that you will want to rent out to tenants.

Whether you are just holding on to the house (while you wait for the value to go up), or you just want to charge the tenants more than your mortgage on the investment property for profit; understanding the British Columbia Residential Tenancy Act is critical.

Landlord And Tenant Law: In The Beginning…

The Tenancy agreement that you originally sign with your tenants is a written agreement that you will need to give to your tenants within 21 days of entering the property.

If you would like to fix or make adjustments to the agreement, both parties (The Tenants and the Landlord) must agree with the changes being made.

Deposits

If you would like a deposit from your tenants, keep in mind that none of the deposits can be more than 1/2 the months rent (If rent is $1000, then the maximum your deposit can be is $500).

Want a pet damage deposit? Well you need to know that you can only get 1 deposit (even if they want to keep 16 noisy chinchilla's in the property).

Landlord And Tenant Law: Accountability For Deposits

So after you have finished your rental term, how do we make sure that we don't have any disputes about the condition of the home?

What I mean is, what if you can see that the tenants have done damage to your home, but they say "The Damage was here when we got here!"

Being A Landlord, Unfortunately, is not exactly like Monopoly...

You can see how this could become a big issue. That is why you need to do a condition inspection of the house. You need to go through the house with your tenants and list off all visible damage before they move in the home.

This way everything will be in writing, and there can be no disputes in the future.

Once you have written up the Condition Inspection report, make sure you give a copy to the tenants.

Landlord And Tenant Law: Some Loose Ends…

Tenants will need to have access to a 24 hour emergency contact name and phone number.

Make sure that the condition of your rental property is good. It should have basic appliances (Fridge/Freezer, Oven) that are in working order.

Landlord And Tenant Law: Once They've Moved In

With all of the obligations that you have as a Landlord, your tenants also have some obligations as well.

They must pay you rent either before, or on the rent due date. If they don't pay you rent on time, you can give them a 10-day notice for the reason of non-payment.

If you want to increase the cost of the rent though, keep in mind that you need to give your tenants 3 rental period notices (likely 3 months) so that they will have time to prepare.

During their stay, you will also be responsible for making sure the property complies with government standards of safety. Emergency repairs (Flooding anyone? This is the Fraser Valley, so depending on where you are in the floodplain it could be a big issue) must be done as soon as possible.

With all that responsibility on you, the responsibility for the house to be clean and sanitary, as well as for them to repair tenant-inflicted damages on the house is the tenants responsibility. There is no reason you should have to fix something that your renters broke out of neglect.

If you would like to enter the property that you are renting out, you will need to give 24 hours written notice to your renters. There exception to this rule is if your tenants simply tell you that you are allowed to enter ("Come on in!")

Landlord And Tenant Law: The End Of The Process

Keep in mind that the notice must be written, verbal notice is not good enough.

If you need to evict a tenant, you will need to use an approved tenant eviction form to perform the eviction. This keeps everything legal and gives you much more power over the situation; if you go through the proper channels, you now have the governments support in your eviction.

Some reasons you may evict your tenants (That is supported by the government):

1. You give a 10-day notice for unpaid rent or utilities
2. You give a 1 month notice for a specific cause (Something that the tenant has done wrong)
3. You give a 2 month notice for your own use of the property (You want to move in, do major repairs, etc.)

Landlord And Tenant Law: Returning Deposits

Be sure to get a forwarding address from your tenants in order for you to pay them their deposit back.

You will need to either return the deposit, or apply for dispute resolution to keep all or part of the deposit.

Of course, if your tenant agrees with you and feels they don't deserve the deposit, then they maybe give you written consent to keep all/part of the deposit.

My Promise To You I will always give my professional opinion, and help you make the most informed buying decision possible. I will return your calls and emails, and will always show up for appointments. I won't push you into something that you are not 100% comfortable and confident in. I will work diligently to help you sell, or buy your house at the absolute best deal possible. I am a Professional Real Estate Agent and you will receive my undivided attention. Cam Vanklei (604) 795-2955 Chilliwack BC, Canada HomeLife Glenayre Realty Ltd.

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