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Revised tenant act good for Whistler

Act brings more stability to rental market Huge rent increases and damage deposits could be a thing of the past for Whistler renters, with new rate and deposit caps for tenants and landlords entrenched in the new provincial Residential Tenancy Act.

Act brings more stability to rental market

Huge rent increases and damage deposits could be a thing of the past for Whistler renters, with new rate and deposit caps for tenants and landlords entrenched in the new provincial Residential Tenancy Act.

The act effectively replaces the Landlord-Tenant Act, which has been criticized in the past for failing to protect either landlords or tenants.

"We made a New Era commitment to modernize residential tenancy legislation in clear language that everyone can understand," said Solicitor General Rich Coleman. "The old legislation was difficult for users to comprehend. Our new law will clarify responsibilities of both landlords or tenants, streamline processes and simplify regulations.

"The changes will stimulate a healthy rental market and improve rental choices, while reducing the over 20,000 costly, time-consuming and confrontational residential tenancy arbitrations each year. The new legislation strikes a balance between the rights and obligations of landlords and tenants."

Among the contents of the new act is a Rent Fairness provision that limits annual rent increases to 3 or 4 per cent, plus inflation. If cost-of-living increases remain around 1.5 per cent annually, the Act limits rent increases to between 5 or 6 per cent per year.

The Act also prohibits screening fees, and maintains security damage deposits to half a month’s rent, although pet owners could be asked to pay more. That could be beneficial for pet owners, as many landlords currently say no to pets because of fears that the associated wear and tear could exceed the allowable damage deposit.

Tim Wake, the general manager of the Whistler Housing Authority, said they do not expect their operations to change significantly as a result of the law.

"We don’t anticipate it’s going to affect our operations because it really has to do with resolving disputes in areas we don’t get into. I think if you have good tenants and good landlords, then you don’t need too much of the stuff."

Outside of the WHA, he thinks the new law will be beneficial for Whistler renters.

"We do get calls from people that are getting rent increases more substantial than (5 or 6 per cent), and the old act didn’t put any limits on that. The tenants were usually surprised that there is no limit," said Wake. "If we can limit increases to that in Whistler, it may prevent some of the gouging."

The WHA tracks the market price of rentals posted in Pique Newsmagazine and The Question, and according to Wake they are growing steadily. A three bedroom rental costs an average of $2,081, a two bedroom $1,456, a one bedroom $1,022 and a Studio $752.

However, according to Wake the numbers are skewed because landlords for the most expensive places tend to advertise, while the landlords who charge the least tend to fill their places by word of mouth.

While the new law may be beneficial in Whistler where rents are steadily increasing, tenant groups in Vancouver are concerned that landlords will take advantage of the increases every year.

In addition, the new law doesn’t place a statute of limitations on the timing of increases for landlords or tenants, and allows landlords to carry increases forward. As a result, tenant groups are worried that landlords could keep prices constant for several years, then suddenly increase rent by 25 per cent.

The law is not retroactive, however, and will not apply to previous years where landlords have kept rents constant.

The issues addressed in the revised Residential Tenancy Act include:

• Screening fees: The new law prohibits landlords from charging application or screening fees to prospective tenants, who faced paying several fees if they applied for more than one rental unit. The new law also protects tenants from landlords who collect screening fees when they have no intention of renting a unit.

• Security deposits: The new law maintains the current half a month’s rent as a damage deposit to ensure access and affordability and allows landlords to collect extra deposits for keys, access cards and garage door openers. This will reduce replacement costs and improve security by increasing the probability of these items being returned.

• Rent Fairness: A simpler formula to calculate rent increases, which will be set by regulation and limited to small annual increases, initially in the range of three to four per cent, plus a consumer price index adjustment. This limits how much rents can be raised and protects tenants from unrestricted increases. The changes also give landlords more flexibility in the timing of rent increases. The old system encouraged landlords to raise their rents every year because increases could not be carried over.

• Inspections: Tenants and landlords often dispute the amount that should be returned from damage deposits. To reduce disputes, the new law requires landlords and tenants to conduct joint inspections before tenants move in and out, and requires a signed report that describes the condition of the unit.

• Illegal activity: Currently landlords can only convict if a tenant’s illegal activity unreasonably affects other tenants, causes extraordinary damage or is a safety risk. Under the new law, landlords can evict tenants for illegal activities, such as marijuana grow operations, that are likely to cause damage or affect the safety of the landlord and other tenants.

• Pets: Landlords still have the power to stipulate no pets, but now also have the option to increase the security deposit to cover damage. In the past it was difficult for landlords to recover the cost of damage by pets when the amount exceeded the damage deposit.