Rent Regulation |
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Sub-Section 13.13 |
Unauthorized Rent Increases |
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Definitions |
Allowable rent: the maximum amount a landlord can charge for a rental unit; this amount is based on:
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. |
Policy |
When the Branch receives rent information, including Notice of Rent Increase and Notice to New Tenant forms, the Branch enters the information in its Registry. When the Branch enters the information received, it doesn’t mean the Branch has approved the rent. The Branch can’t approve the rent because it can’t be certain that the tenant received the required notice of the increase and that the information is correct. The Branch can only be certain about the allowable rent after issuing an Order setting the rent. <><><><> The Branch reviews the rent information filed with the Branch if the information suggests that tenants may have been or, are about to be charged, more than the allowable rent. <><><><> The Branch also reviews the rent information if someone has a complaint or question about the rent a landlord is charging. <><><><> The Branch calls this rent review process "rent compliance". Here are some examples of the most common "rent compliance" situations:
The landlord increases the rent by more than the annual rent increase guideline without applying to the Branch. For example: The allowable rent is $500.00 plus $15.00 parking. The annual rent increase guideline is 1.5% so the rent increase should be $7.73. The landlord can round to $8.00 so the new allowable rent is $523.00. The landlord doesn’t apply to the Branch, but raises the rent to $530.00.
When a landlord gives a tenant a Notice of Rent Increase, the landlord must also send a copy to the Branch. In some cases, a landlord may give the tenant the notice, but neglects to send the form to the Branch. If the Branch does a review, its records will not be complete. If the landlord doesn’t send the form to the Branch, the Branch may decide not to roll the rent back if:
<><><><> When the Branch reviews rent, the Branch may consider any possible unauthorized rents the landlord charged in past years. The Branch reviews:
If the landlord refuses to provide information on request, the Branch may attend the landlord’s place of business to inspect the records for the residential complex. If the landlord continues to refuse access, the Branch might consider, as a last resort, applying to the Courts for an Order authorizing access. <><><><> When the Branch reviews the rent to determine if there’s an unauthorized rent increase, the Branch considers:
<><><><> If someone is thinking about buying a rental property, they should ask the Branch to check its Registry for information on the property. A new landlord is liable if a previous landlord didn’t comply with The Residential Tenancies Act. If there is an unauthorized rent increase, the Branch may:
If the landlord can show that the tenants received proper notice of the rent increases, the Branch may allow the landlord guideline increases. For example: A new landlord purchases a residential complex on March 1, 2004. The new landlord believes the monthly rent on all their units is $472.00. In May 2004, the Branch becomes aware of a possible unauthorized rent increase which happened in 1999. On January1, 1999, the former landlord increased the rent from $375.00 to $450.00. This was an increase above the guideline, but the former landlord didn’t apply to the Branch. The former landlord then took guideline increases from 2000 to 2003. The former landlord provides the Branch with copies of the notices of increase in rent they gave the tenant. The Branch orders the new landlord to repay the tenants the unauthorized rent collected since March 1, 2002. The Branch also orders the former landlord to repay the unauthorized rent collected from January 1, 1999 to February 28, 2002. The following chart illustrates the effect of the rent roll back:
Since the former landlord may be directly affected by a Branch Order, the Branch sends them a copy of the Order too. <><><><> If the landlord applies for an increase above the guideline and the Branch is reviewing any of the rents, the Branch won’t process the rent increase application until the review is complete and the landlord adjusts any unauthorized rents. <><><><> If the Branch finds that the landlord improperly increased rent on one unit, the Branch may review and set the rents on other units in the complex too. <><><><> Section 140.0.1 gives the Branch and Commission the discretion, under certain specific circumstances, to allow a landlord a guideline rent increase when the landlord does not meet all the requirements of the Act for giving a Notice of Rent Increase (NORI) or a Notice to New Tenant (NTNT). This section is intended to give a landlord “one-time relief” from certain requirements of the Act. The authority under the section will only be used when:
If the Branch/Commission allows the landlord the guideline rent The Branch/Commission may allow a guideline increase if the landlord gave the tenant written notice of the rent increase on an incomplete NORI or in a letter or tenancy agreement renewal. The Branch/Commission must be satisfied that:
If the landlord did not give the required notice on time or increased the rent before the anniversary date, the Branch/Commission may adjust the date of the rent increase during its review. The Branch/Commission must also be satisfied that the landlord’s failure to give the required notice has not resulted in unfairness to tenants. When appropriate, the Branch/Commission may contact the current tenants of a rental unit/complex. The Branch/Commission will ask tenants about the rent increase notice they received and invite them to submit any comments they want the Branch/Commission to consider. In some cases, the Branch/Commission may also speak with previous tenants. In determining whether there was any unfairness, the Branch/Commission may consider:
Once the Branch/Commission completes its review, it may issue an order setting the rent for the rental unit and ordering the landlord to return any resulting overpayments to the tenants. |
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Overview |
The Branch receives information that suggests a landlord may have charged or has proposed to charge more than the allowable rent. An officer collects, reviews and verifies information. The officer calculates the correct rent. If there is an overpayment, the officer tries to get an agreement with the landlord to refund the overpayment to the tenant. If the landlord won’t agree, or doesn’t comply with an agreement, the officer issues an Order. |
Steps ▼ |
1. An officer receives information that suggests tenants may have been, or are about to be charged, an unauthorized or incorrect rent. 2. The officer compares the information received with rent information currently on file. 3. If there appears to be a problem, the officer contacts the landlord to confirm the information currently on file. The officer may contact the landlord by phone, mail or e-mail. The officer asks the landlord for information on the amount of rent charged in past years, and the dates of rent increases. The officer may also explain what the landlord must do to correct any possible unauthorized rents. 4. If the landlord doesn’t correct the rent or send in the required information, the officer calculates the correct rent and overpayment refund, using available information.
5. If the landlord agrees with the officer’s calculations, the landlord must tell the officer, in writing, that tenants have received refunds for any overpaid rent. If the landlord can’t find a tenant, they must send the money to the Branch to be held for the tenant. The Branch holds the money for two years. If the tenant doesn’t claim the money, the Branch deposits it in the Security Deposit Compensation Fund. 6. If the landlord doesn’t agree with the officer’s calculations or send in new information within two weeks, the officer sends a second letter. This letter states that if the landlord doesn’t reply or agree to correct the rent within 5 days, the officer will contact the current tenant to verify the rent information on file. 7. If the landlord does not agree or send in new information, the officer asks the tenant for more information. For example:
The officer may also get in touch with former tenants to find out what they paid and what services were included in the rent. 8. Once the officer has the necessary information, the officer issues the Order. The Order will:
9. If the landlord appeals the Order, the officer attends the appeal hearing to provide information on the Branch’s file and ask the Commission to confirm the Branch’s Order. 10. If the landlord doesn’t pay previous tenants, and the tenants ask the Branch to enforce the Order, the officer may issue an Order to Redirect Rent from current tenants. |
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Forms & Form Letters |
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X-Referencing |
None |
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Policy Developed |
September, 1992 |
Last Revision |
August, 2015 |
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Other Resources |
None |
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