RAISING THE RENT
Written by Evan Brett (Fall 2024)
How many times have we heard this one? If the rent increase for 2024 is supposed to be a 3% increase over last year, how come my rent went up 4.2% or 7.6% or even 11.3%?!!
As we manufactured home owners know, our landlord has the right to raise our rent each year by the amount mandated by the provincial government, as represented by the Residential Tenancy Branch (RTB). The Notice of Rent Increase comes on the RTB-11a form and must give the tenants at least 3 full months of notice of rent increase.
There are three parts to a Notice of Rent Increase:
1. The yearly allowable rate, as set by the RTB
2. Local Government Levies
3. Additional Rent Increases
The yearly allowable rate is determined by the RTB, based on the BC Consumer Price Index for the previous year (the CPI).
The Local Government Levies and Public Utility Fees and Charges are outlined on the RTB-11a form in Section D – Detailed Calculations. The actual copies of the tax notices and invoices for local government levies and public utilities are to either be provided, made available on request, or posted in a common area.
However, in some years we will each get a notice of a pending Additional Rent Increase (an ARI). This additional rent amount is to cover an expense that the landlord incurred in providing some improvements to the park. By submitting a notice of a notice of additional rent increase, the landlord would like the homeowners to compensate them for this expense – usually over a period of time by way of proportional monthly payments from each homeowner, those who supposedly benefit from this improvement (very likely that is everyone in the park).
Additional Rent Increase (ARI):
In order for the landlord to obtain approval for such an ARI they must apply to the “Director” of the RTB using the prescribed form. In BC, the director is the Residential Tenancy Branch (the RTB) and whichever arbitrator the RTB might appoint to hear the landlord’s rational for this ARI application. Of course, also in BC, if a homeowner, or a group of homeowners, object to this application, they too can file their objection with the RTB. They may be objecting to the fact that this supposed expense is unreasonable or is unnecessary or both. They may be objecting because they have never received documentation to prove this expense is legitimate. Or they may be objecting to the manner in which they were served notice.
We suggest that when you get a notice of a rent increase, you look carefully at what has been included in that notice. Was the Detailed Calculation (section D) completed correctly? Were the tax notices and invoices for local government levies and public utilities made available? Are there additional costs included? Last year, was there a major sewer line installed, a water connection, power upgrades, rebuilt roads? And now is there a monthly compensation for these costs included in your notice – usually averaged across all homeowners effected?
And those Municipal Charges:
Legitimately, there will usually be the allowable RTB increase along with the increase in municipal charges for that past year. However, with those charges listed, is it a reasonable increase over the past year? Is that charge just the increase over the previous year or is it the entire tax bill paid by the landlord that year? Or perhaps it’s some random percentage chosen by the landlord?
In layman’s terms: in British Columbia, landlords of manufactured home parks can charge homeowners for any yearly increases in local government taxes. This is explained in the rules for manufactured home parks. When rent goes up, the increase can include these extra taxes and utility fees. There is a form called RTB Form 11a that landlords use to tell tenants about the rent increase, and it shows that the increase can include these extra costs.
For more information, you can read the and the . You can also check out the and the .
The Act and Regulations:
Of course, the Manufactured Home Park Tenancy Act says that only an “increase” in municipal charges is allowed. It also says under Sec. 33(1) (i) in the Regulations that charging the homeowners for capital expenditures is acceptable only if they “are reasonable and necessary” – both of these. Is it reasonable that the landlord didn’t repair that failing water line years ago? Is it necessary to replace the stop signs on the corners? Remove the trees? Finally replacing a failing sewer disposable system?
Disputing the notice of rent increase – What to do?
In some parks, it might be necessary to challenge some of these items listed on your Notice of Rent Increase. We suggest that you contact as many of your neighbours as possible to confirm that they have each received a similar notice. If there is a general agreement that something isn’t right and you suspect that you’re going to be overcharged on the date that the increase in rent comes into effect, then perhaps appoint a spokesperson(s) and arrange to meet with management. If management is not prepared to make the appropriate adjustments, and the group is still not satisfied with the explanation, then perhaps it’s a matter for the “Director” of the RTB.
For any request by a landlord for an increase above the standard RTB rate for the year, that request has to be submitted to the RTB. Then the RTB has to issue a formal notice to each homeowner detailing the landlord’s request for an ARI. Once that is received, perhaps that is the time to submit a formal objection. Remember, the usual $100 fee from each applicant does not apply in the event of an objection to an ARI. If you need help, LMMHOA can usually provide advice to its members only at no cost.
For manufactured home owner parks in British Columbia, the process for challenging a Notice of Rent Increase is similar to other tenancies, but there are some specific considerations:
1. Notice Period: Landlords must provide at least three full months’ notice before increasing rent. Example: rent notice for increase starting January 1, 2025. Your notice must be received by the end of September 2024.
2. Annual Limit: Rent increases are limited to once every 12 months and must be within the yearly rent increase limit set by the Residential Tenancy Branch (RTB).
3. Dispute Resolution: If you disagree with the rent increase, you can apply for dispute
resolution through the RTB1. This process allows an arbitrator to review the increase and make a decision.
To initiate the dispute resolution process for challenging a rent increase in a manufactured home owner park, follow these steps:
1. Gather Documentation: Collect all relevant documents, including your lease agreement, the Notice of Rent Increase, and any correspondence with your landlord.
2. Complete the Application for Dispute Resolution: You can find the application form on the Residential Tenancy Branch (RTB) website. Fill it out with details about your case and the reasons for disputing the rent increase.
3. Submit the Application: Submit your completed application to the RTB, along with the required fee. You can submit it online, by mail, or in person at an RTB office.
4. Prepare for the Hearing: Once your application is accepted, the RTB will schedule a hearing. Prepare your case by organizing your documents, evidence, and any witnesses who can support your claim.
5. Attend the Hearing: Attend the hearing (in person, by phone, or virtually) and present your case to the arbitrator. Be clear and concise and provide all necessary evidence.
6. Await the Decision: The arbitrator will review the evidence and make a decision. You will receive a written decision outlining the outcome.
