Residential Tenancies Branch

Rent Increase – When Landlord Adds Furniture

s. 1(1), 132.1, The Residential Tenancies Act
s. 10.2, Residential Rent Regulation

Definitions

Anniversary date: the date on which a landlord is entitled to increase the rent on a rental unit. In some residential complexes, all units have the same anniversary or rent increase date. In other complexes, the anniversary dates may be spaced throughout the year. A landlord can usually increase rent for a rental unit only once every 12 months. A landlord can change the anniversary date on a rental unit by waiting more than 12 months between rent increases. For example: The anniversary date on a particular unit was September 1, 2003. The landlord wanted to change the anniversary date to January 1 to coincide with the anniversary dates on the other units in the complex. To change the date, the landlord did not increase the rent on September 1, 2003 but waited for the increase until January 1, 2004.

Furniture: in a furnished rental unit, appliances such as stove, fridge, washer and dryer are not considered furniture.

Notice to New Tenant: a form a landlord must give a new tenant at the beginning of a tenancy. The landlord must send the Branch a copy of the form within 14 days of giving it to the tenant. The notice tells the tenant about the services and facilities that are included in the rent. It also shows the previous and present rent for the rental unit and tells the tenant of any proposed rent increase.

Rent: the amount of money paid by a tenant to a landlord for the right to occupy a rental unit and the use of common areas, services and facilities; rent includes any service/facility for which the tenant pays a separate charge (For example: parking, storage locker.)

When a tenant moves out of an unfurnished rental unit, a landlord may decide to add furniture to the unit. The landlord may increase the rent for the furnished rental unit.

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If the rental unit is in a residential complex with four or more units, the landlord must tell the new tenant how much they increased the rent because of the new furniture. The landlord shows this information on a Notice to New Tenant form. The Branch provides the form. A landlord may use their own form as long as it has all the information required by the Act.

If there are three units or fewer in the complex, the landlord may add furniture and decide the amount of the rent increase. The landlord must still give the tenant the Notice to New Tenant form.

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The landlord must give the tenant the Notice to New Tenant before they can charge the higher rent. The landlord must give the notice to the tenant when they agree to rent the unit.

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The landlord may only increase the monthly rent by a maximum of 1/36 of the total cost of the furniture. For example: The total cost of the furniture is $3,600.00. The landlord may increase the rent by 1/36 or $100.00 per month ($3,600.00 ¸ 36 = $100.00).

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In a complex with four or more units, when a landlord increases rent for added furniture, the new tenant is entitled to object to the amount of the increase.  The  tenant  must  file  their  written  objection with the Branch within 30 days of receiving the Notice to New Tenant form.

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To make a decision on a rent increase for added furniture, the Branch may ask the landlord for information. When making the decision, the Branch considers:

• the amount of the increase;
• the cost of the furniture; and
• any other information received from the landlord and tenant.

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When a landlord increases rent for added furniture, it doesn’t necessarily change the anniversary date for the rental unit. For example: A landlord increases rent on the anniversary date, February 1, 2004. The landlord adds furniture to the rental unit and a new tenant moves in May 1, 2004. The landlord gives the tenant a Notice to New Tenant form and increases the rent. On February 1, 2005, the landlord is entitled to increase the rent.

Procedure

Overview   

An officer receives a tenant’s objection to a rent increase for added furniture. The officer contacts the tenant and landlord to discuss the objection. The officer may ask the landlord for information about the cost and value of the added furniture. The officer tries to help the landlord and tenant resolve the objection. If they can’t resolve it, the officer issues an Order.

Steps ▼   

1.   The officer reviews the tenant’s objection and contacts the tenant to       discuss it. The officer then contacts the landlord to discuss the objection.       The officer tries to help the tenant and landlord resolve the problem.

2.   If the officer can’t resolve the objection, they send the landlord a letter       asking for information on the cost, age and value of the furniture.

3.   The officer reviews the information from the landlord and issues an Order       setting the maximum amount of the rent increase for the added furniture.

Forms & Form Letters

Notice to New Tenant....................................Form 2/Residential Rent Regulation

X-Referencing

None

Policy Developed

March, 2004

Last Revision

August, 2015

Other Resources

None

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