Do you know what I’m struggling with today? I’m struggling with the concept of tough love. I feel really bad for all of the tenants who have had horrible things happen to their rental buildings lately, but I also think that this is (in a phrase I never would have used before working here!) a “teachable moment.” How can you avoid being the tenant on the TV who has lost everything? Get tenant insurance. Just go out and get it. It doesn’t cost that much (you can even spread the cost over the year by paying in installments), and your lease probably requires you to have it in the first place.
Why do you need it? So that if your apartment burns down, falls down, is broken into, or gets up and walks away, you will be able to buy new stuff. One of the most common things I hear from tenants is that “my stuff isn’t that nice anyway, so it’s not worth it for me to spend the money on insurance.” Wrong, wrong, wrong! Let’s break it down: let’s say you pay $200.00 for one year of content insurance. Let’s say that your place is destroyed, and all of your stuff is lost. If you spent the $200.00, then you pay the deductible, and replace your crappy stuff with brand new stuff. How great is that? If you don’t buy the insurance? Well, hello, free couch in the back alley that may or may not be crawling with bed bugs. Hello, internet café, where no one washes their hands before they touch the keyboards. Get it? You will have nothing: no couch, no laptop, no TV, nothing.
The other common thing I hear from tenants is “if the place burns down, the landlord has to buy me all new stuff because it’s his fault.” Really? Does anybody actually believe this? Guess what would happen if you went to court to try to force your landlord to pay for all new stuff for you? The first question would be “Were you required to have tenant insurance under your lease?” You’d have to say yes, and then your case would be thrown out and you’d still be left with nothing. Well, actually, worse than nothing, because you’d probably have to end up paying your landlord’s court costs.
Use your head, and go buy insurance.
Until next time, make sure you think ahead and take the spoon out of the sink before you turn on the water or you’re going to have a big ol’ mess on your hands…
You can find out more about insurance and renting here.
Movin' on up, movin' on out (Part 3)
Welcome back to the last of the “how the heck do I give notice to move out” posts. You can read the first one here, and the second one here. This post is going to talk about fixed term tenancies and what steps you can take to end one.
First, let’s talk about what a fixed term lease actually means. The way a fixed term tenancy works is that both the tenant and landlord are bound by the terms in the lease, including the period of for which the property is going to be rented. The tenant gets some bonuses (the landlord can’t increase the rent during the term of the lease, the landlord can’t end the tenancy during the term of the agreement unless the tenant has done something wrong, etc.), and so does the landlord (the landlord knows that the property will be rented for a guaranteed period of time for a specific amount of money). Most issues come up when one side decides that they don’t want to be bound by the lease anymore. For example, the landlord decides to sell the property and wants the tenant to move out early, or the tenant’s job moves, or is lost, and the tenant needs to move somewhere else.
So, how do you end a fixed term tenancy? You cannot just give a month’s notice like you would for a monthly periodic tenancy. You signed a contract, and one of the terms that you promised to follow was the length of time you would rent the place. The nature of a fixed term tenancy is that the tenancy only ends under the terms of the contract (for example, the tenancy will end on the date stated in the lease), or if the landlord and the tenant agree to end the tenancy early. You can always try to talk to your landlord to see if the landlord is okay with an early end date. If you are able negotiate and come up with an agreement, you should put this agreement in writing. Remember, your landlord does not have to release you from your obligations that you have, so it’s a good idea to think of some negotiating points (“this will give you time to paint the apartment like you said you wanted to do. With all new paint, I bet you could charge more rent”) and to be nice. You are asking for a favour from your landlord, so be courteous and act in a reasonable manner.
If your landlord won’t agree to end the lease early, what can you do? Well, you might be able to sublet or assign your place. Generally speaking, this means that you would find someone who wanted to rent your place, and then that person would move into the property and you would move out. Under an assignment, you would generally give your entire interest in the property over to the new tenant. In a sublet, you would remain responsible, along with the new person, for all obligations of the original lease. So, if your subtenant did not pay rent, then your landlord could come after you to collect the unpaid rent. You must request your landlord’s permission in writing before you assign or sublet. If your landlord does not respond to your request within 14 days, then you can assume that the landlord consented.
What happens if none of these options work for you, and you go ahead and move out anyway? Well, there are consequences that you have to weigh. You remain responsible to pay the rent until the tenancy ends (either because the landlord rents to a new tenant, or the end date in your fixed term occurs). This means that if, for example, you moved out in March and you were supposed to live there until September 30, then you must continue to pay the rent until either the place is rented out again, or until September 30 comes. Your landlord must try to rent out the property again. The landlord has to do all of the things that s/he would normally do to find a new tenant. And if you’re thinking right now that you can just ignore the landlord’s demands for payment, think again. The landlord can contact a collection agency to try and collect the debt, or can make an application against you.
The chances of you getting your security deposit decrease as well. Your lease might have a term that says that if you break the lease, then you must pay the landlord some money in fees, and these fees, if you don’t pay them, can be deducted from the security deposit. You can find out more about these fees in Service Alberta’s Voluntary Code of Practice here. Also, you might be paying rent on your new place and won’t be able to afford to pay rent on the old place, and the landlord can deduct unpaid rent from the security deposit.
Well, we’ve covered most of the common concerns that come up when a tenant wants to move out of the property. Until next time, stay away from those home design magazines at the check-out counter, as they will only lead to a vague feeling of dissatisfaction when you get home.
Movin' on up, movin' on out (Part 2)
And we’re back! If you’re new to the blog, go back and read my last entry, as this post is a continuation of it.
So you’re renting a place and you’ve decided that you want to move out. You looked at the lease that you signed and you realize that you’re renting under a monthly periodic tenancy, and that the Residential Tenancies Act (RTA) applies to you and your landlord. What steps do you have to take now?
First, you have to give written notice. The notice must give the address of the place that you are renting, you must sign it, and you must also give the date that you will be moving out. There are organizations in Alberta that have developed written notices that you can use. You also have to serve the notice on your landlord.
The RTA says that a tenant in a monthly periodic tenancy must give one full tenancy month’s notice. If the tenant does not give enough notice to the landlord, then the written notice is still effective to end the tenancy, just not for that date. Here’s an example.
If you have a monthly periodic tenancy that begins on the 1st day of the month and ends on the last day of the month, and you give your notice on, for example, February 2 to end the tenancy on February 29, your notice would work to end the tenancy, but not for February 29. See, February 2 to February 29 is not a full tenancy month, but March 1 to March 31 is a full tenancy month. This means that if you gave your notice on February 2, your tenancy ends on March 31. You have to pay the rent for the entire notice period. The tenant must move out by 12 noon on the last day of the tenancy, unless there is an agreement between the landlord and the tenant that states otherwise.
You can talk to your landlord about making a different agreement in relation to the move out date and time and the amount of rent that is due, but your landlord does not have to negotiate with you. Sometimes, if you are a problem tenant, or if the landlord can find a new tenant that wants to move in right away, then the landlord will agree to an early end date. I once spoke to a woman who had been given multiple notices for noise violations from her landlord. She decided she wanted to move out immediately so she spoke to her landlord, and he was more than happy to have her move out right away (I’m sure he would have offered to help her pack if he thought he could have got her out a day sooner). If you can come up with an agreement with your landlord, then you should put this agreement in writing.
If you decide to just walk away and not pay rent for the notice period, then your landlord can keep some or all of your security deposit to cover the unpaid rent. Your landlord could also make an application against you (which isn’t hard, so don’t think your landlord won’t do it). Did you know that a court order in Alberta is good for ten years? That means that if your landlord gets an order against you now, s/he has ten years to collect the money from you. I know many university students out there who may not have money now, but will within ten years, and the last thing they should want is some unpaid court order out there waiting to swoop into their bank accounts and garnish next week’s mortgage payment.
Come back next week to learn about what you can do if you have a fixed term lease and you want to move out.
You can read more about ending a periodic tenancy on the Laws for Tenants in Alberta website here or in Service Alberta’s Voluntary Code of Practice here.
You can read about enforcing a court order on the Alberta Courts website here.
Movin' on up, movin' on out (Part 1)
With a new year comes a time of reflection, when people often think about where they are in their lives and where they want to be, and make decisions about how best they can get there. I’m sure that we’ve all woken up one morning, opened a bleary eye, looked around at the place we’re renting and wondered: “How did I get here? And how do I escape?” in a not-entirely-joking kind of way. Apparently, that’s what a lot of tenants were thinking about when they rolled out of bed on January 1, and many of them decided that they want to move out now; as in today, not tomorrow, not next month, but right now! Can a tenant just pack up and go? What are the laws that a tenant has to follow to end a lease, and what can happen when a tenant doesn’t follow these laws?
First, under the Residential Tenancies Act (RTA) there are two types of tenancies within Alberta. There is a periodic tenancy, which means that there is no end date stated within the lease, and the lease simply continues on indefinitely, until something happens to end it (for example, if the tenant gives notice to end the tenancy). The most common type of periodic tenancies are month-to-month tenancies. Periodic tenancies can also be week-to-week, or year-to-year.
The other kind of tenancy is called a fixed term tenancy. This means that there is an end date stated directly within the lease. The most common type of fixed term lease is a one year lease, but they can be for periods of time longer or shorter than one year. The tenancy automatically ends on the date stated in the lease. If, at the end of the fixed term, the tenant continues to rent the property but does not come up with a new agreement with the landlord, then the tenancy automatically becomes a periodic tenancy.
Each type of tenancy has different rules for how the tenancy ends. Now that I have you all aquiver with anticipation to learn about this subject, I’m going to pull a realty show move and tell you to tune in next week to find out what the rules are to end a tenancy. Insert evil laugh here.
More Information:
- Types of Leases
- Does the lease have to be in writing?
- What can be included in the lease?
- Does everyone who is living in the property have to be named on the lease?
- Can the Landlord require a tenant to provide proof of insurance?
- What happens at the end of a fixed term lease?
Another bed bug story…
Well, bed bugs in rental housing has come up again, at least in the Edmonton news. There is a lot of information out there that can help you figure out if you have bed bugs, what you should do to deal with them, how you can prevent getting them in the first place, and how you can avoid passing them along to someone else.
Sandra Hamilton, a health inspector with Alberta Health Services, was interviewed on CBC and you can listen to the interview here.
The Edmonton Apartment Association has a lot of information on their website, including the Edmonton Bed Bug Guide, and a Bed Bug Info Sheet.
If you are a renter who thinks you have bed bugs in the rental premises, you can find out which Alberta Health Services, Environmental Public Health office you should contact to receive more information here.
Until next time, while it may be true that no man is an island entire among itself (yes, I have just “Donne” that), the same can’t be said about your bed…
FAQ: Who is Responsible to treat bugs in a rental property?
Stuff I Wish I'd Known Yesterday
I realized the other day when I was talking to a landlord that I’m always telling people to write a letter. Having a problem with a noisy neighbor? Write him a letter asking him to be quiet. Having problems with a tap in your place? Write your landlord a letter, asking her to fix it. Why do I nag people about putting things in writing? Well, there are a couple of reasons, but for the most part, if you write down the concerns that you are having and suggest a way to fix things, you stand a higher chance of getting what you want done than if you’d done nothing at all. The problem that a lot of people have is that they don’t know how to write the letter in the most effective way, so I’m going to give you some pointers and then show you an example of what the letter can look like.
The kind of letter I’m writing about is generally called a ‘demand’ letter. What exactly is a demand letter? Simply put, a demand letter is a letter that you write to someone (can be a person or a business and for this post, I’m going to refer to the other side as the other ‘party’), demanding that the other party do something by certain date. Demand letters are commonly used when someone owes you money, but they can be useful in other contexts too. If you need repairs done by your landlord, you can write the landlord a demand letter. If you paid a contractor to do some work around your home, and the work wasn’t completed to your satisfaction, you can use a demand letter.
There are some things that you should keep in mind when you write a demand letter.
Good Idea Number 1
You should include certain details. You should put the name and address of the other party in the letter. You should date the letter. You should sign the letter. You should include your own contact information, so that the other party can contact you if they have questions.
Good Idea Number 2
Set out the facts that have happened up to the point of writing the letter. You should include the relevant facts in a clear and calm manner. If, for example, you are using a demand letter to collect a debt that is owed to you, the relevant facts may include the date that you loaned the money, the agreement that you had with the other party for when the money would be paid back, and, if you talked about it with the other party, what would happen if they didn’t pay you back when they were supposed to. If you talked to the other party about the debt after you loaned them the money, then you would include that information too, and any action that you or the other party has done in relation to the debt. If you have dates for when events happened, you should include them in the letter. If you have names of people that you talked to, then you should include those names.
You should not use the demand letter as a platform to vent your frustrations. Before you address the letter to the “scheming, lying jerk” who owes you money, you may want to reconsider. The demand letter could end up forming part of your case if you end up in court, so write the letter with the belief that it will end up being read by a judge. Judges don’t like it when people call other people names; judges like facts. Also, it’s the old adage of collecting more flies with honey: if you are polite and business-like, chances are the other side will respond in the same manner.
Good Idea Number 3
Set out what you think should happen. If someone owes you money, then set out how much money they owe you, and how they can pay it to you. If you are asking your landlord to deal with a noisy tenant next door, then you could suggest that the landlord speak to the tenant, or give the tenant a written warning, or a written noise complaint.
Don’t be unreasonable. If you loaned someone money, but didn’t discuss an interest rate on the loan, then don’t demand 40% interest on the debt. You might be mad at what has gone on, but it’s not up to you to punish the other party; your goal should be to put yourself back into the position that you would have been had you not loaned the money in the first place.
Good Idea Number 4
Set out when you want those actions to be taken. You should be crystal clear on when you want the other side to take action. The amount of time that you give the other side will depend on what you are asking for. Usually, if you are asking for payment of a debt, a reasonable amount of time for the other side to pay you could be between two to three weeks. You should also look at a calendar when you set these dates out, because you may not want the collection day to fall on a weekend, as most banks are not open on the weekend.
Good Idea Number 5
What are you planning on doing if the other party doesn’t take the actions that you’ve requested be taken? Are you going to take them to small claims court? Then put that in the letter. You cannot threaten to bring criminal proceedings against someone (this is called extortion and is a crime), but threatening to bring a civil action against someone is not considered to be extortion, so that’s okay. You may not be sure what you are going to do if the other person doesn’t do what you want them to, and that’s okay too. A classic line to use in those circumstances is to write that you will “begin to consider the legal remedies available.”
Good Idea Number 6
You should keep a copy of the letter, so that you have it available for your use if you end up in court. You may also want to send the letter by registered mail, so that you can prove in court that the other party received it.
Good Idea Number 7
If you have a complex situation, where you are not sure what details to include in the letter or you are not sure what steps you should be asking the other party to take, you may want to consider hiring a lawyer to write the letter for you. There are many law firms who will, for a fee, write the letter and send it for you.
So let’s take an example situation and look at what a demand letter can actually look like. Let’s say that Adam loaned Bob $2,000.00 on March 1, 2011. Bob agreed that he would pay Adam back the entire amount before June 1, 2011. Bob paid Adam $250.00 on April 15, but hasn’t given Adam any money since then. Adam talked to Bob on May 28 and asked for the rest of the money. Adam didn’t hear from Bob at all, and has not received any more money. Bob started avoiding Adam’s phone calls, and Adam gave up trying to contact Bob for a while. Adam found out that Bob just bought a new car, so Adam wants Bob to pay him back the money in full. Adam decided to write Bob a demand letter.
December 1, 2011
Bob Lastname
1234-56 Street
Edmonton, AB
T1A 2B3
To Bob Lastname:
On March 1, 2011, I loaned you $2,000.00. We agreed at that time that you would pay me back the full amount on or before June 1, 2011. On April 15, 2011, you paid me $250.00, which left you owing me $1,750.00.
We spoke on May 28, 2011, and I requested that you pay me the remaining money on or before June 1, 2011, as we had originally agreed upon on March 1. I have attempted to contact you numerous times, but I have not heard from you, nor have I received any further payments.
You owe me a total of $1,750.00. Please pay the full amount that you owe me on or before 4:00 p.m. on December 20, 2011. If I do not receive full payment on or before 4:00 p.m. on December 20, 2011, I will consider my legal options, which may include bringing a claim against you in Provincial Court.
You can contact me to make payment arrangements at 780-111-1111.
Sincerely,
Adam Lender
780-111-1111
The example of Bob and Adam deals with a loan, but there are many situations when a demand letter will be helpful. If you are involved in a landlord and tenant dispute (for example, if repairs are not being completed in the rental property), the Canadian Mortgage and Housing Corporation has a page of “Sample Letters and Worksheets” that are really helpful.
Until next time, enjoy writing those politely worded letters!
Secondary Suites: what the heck are they and why should you care?
FAQ: How do I know if I live in an illegal secondary suite?
We’ve all heard of them: secondary suites, granny pads, garden suites, mother-in-law suites, etc.. I grew up on a farm so I’ve always had my own image of a secondary suite: a granary that has been turned into a one-room cabin where Grandma stays when she visits in the summer.
Then I moved to a city and got (drum roll) cable TV! Oh, cable TV and your kooky shows about home ownership, property wheeling and dealing, and renovating and remodeling! There are whole shows dedicated to building that basement suite so that the homeowner can afford to make the mortgage payments. Besides giving the impression that a basement remodel isn’t really all that much work and will only take a few days to complete, the hosts usually do not go into detail about bylaws, permits and approval processes. As a result, most viewers are left with the impression that if you want to have a tenant in the basement, then just “built it and they will come.” Well, chances are that “they” will come, but “they” will be the bylaw enforcement officers with tickets in hand.
So what exactly is a secondary suite? Usually, a secondary suite is an enclosed living space within a home that has a kitchen, a bathroom, sleeping/living space and its own private entrance (for example, a basement suite). Each municipality has a different definition of what a secondary suite is. Some communities allow other types of suites to be built, including garage suites (which are enclosed living spaces above or attached to garages) and garden suites (which can be thought of as a small, self-contained house in a backyard (like a super deluxe dog house, but for people)). To cut down on the confusion, I’m just going to use “secondary suites” to refer to all of these types of suites.
What should you know about secondary suites?
Bylaws
Each municipality (city, town, or county) has the authority to decide if secondary suites are going to be allowed or not. If they are allowed, then the municipality decides where they can be located, and what kind can be built. The municipality will have bylaws that set out the rules that a homeowner must follow based on where the property is located (sometimes called a “land use district” or a “zone”). Some zones allow secondary suites, some zones do not, and some zones allow secondary suites some of the time. There are also rules about what permits have to be obtained, and when.
- Good Idea Number 1: If homeowners want to build a secondary suite, then they should contact their municipality (the city office, town office, or county office) to find out if the bylaws allow for secondary suites, and to find out what procedures must be followed.
Subsidies
Some municipalities offer incentives for homeowners to build secondary suites. Your municipality should be able to let you know if there is a subsidy program in place, and what the process is to receive the subsidy. Homeowners should contact the municipality about subsidies before they begin building or renovating the secondary suite. Usually a municipality will only subsidize construction that has not yet been completed.
- Good Idea Number 2: Homeowners should contact their municipality to find out if there are any subsidies or grants available to help with construction costs before they pick up a hammer.
Safety and Building Codes
While the municipality has the authority to decide if secondary suites should be allowed, the province has the authority to decide what safety and building codes the secondary suites must be built or maintained to meet. This means that if homeowners are allowed to build a secondary suite by the municipality, then they must build the secondary suite to meet provincial health and safety standards. Depending on when the secondary suite is built, different standards may apply.
- Good Idea Number 3: If Alberta homeowners are approved by the municipality and can build a secondary suite, then they should get in touch with Municipal Affairs about building and safety standards for secondary suites.
Buying a home with a secondary suite
What if you are looking at buying a new home, and there is a suite in the basement? You should find out if permits have been issued for the secondary suite before you buy the home. You can contact the municipality and give them the address of the property, and they should be able to tell you if the suite is legal or illegal.
If you decide to buy the home, then you should not rent out an illegal suite, but instead, do what needs to be done to turn it into a legal suite. If you do rent out an illegal suite, then different things can happen and different enforcement measures can be taken against you, depending on the circumstances. This is about more than if you are allowed to have a suite; it’s also about the safety and health of your tenant. The entire certification process is in place to potentially save lives, and to avoid tragic results.
- Good Idea Number 4: Before you buy a home with a secondary suite, do your homework and make sure that you know what has to be done before you can rent out the suite.
Until next time, when you daydream on a sunny day while gazing out a window, instead of making animal clouds, try to picture yourself being able to fit through the frame if there is ever a fire.
For information on bylaws in other jurisdictions, visit LawCentral Canada: http://www.lawcentralalberta.ca/
The Joys of Winter, and the Wonder of Insurance Policies
We all have an idyllic image of winter that we can call to mind in order to cope when our winter wonderland isn’t so wonderful, and the land is covered in white.
Let me build a picture for you.
A cozy log cabin, surrounded by fluffy white snow, icicles formed from the roof reflecting and glistening in the early afternoon sunshine. The light scent of wood-smoke floats in the air, and the taste of hot chocolate warms from the inside out. The inviting curve of the path up to the cabin, newly shoveled, leading up to the wood steps, and the welcoming glow of the glass paned front door. The white tipped evergreens stand as protective sentinels, their scent curling through the gentle breeze that flows lazily through the gaps in the trees.
Got it?
Now factor in reality. That freshly dug path leading to the cabin? All that shoveling uncovered a layer of ice, and now the path is a treacherous route to frozen wooden steps, where a single toe out of line means a fall, a broken hip, a concussion. The hot chocolate that was heated on the gas stove? The stove is ancient and the lines haven’t been checked since it was purchased. Instead of the scent of evergreens, there is the noxious stench of leaking gas from the rotted line. The icicles on the roof? A harbinger of the weight the roof must bear, and has borne for the fifty years the cabin has been standing. The roof bows, maybe doesn’t break, not yet, but it leaks tears of winter water in supplication before crashing down, ripping down walls and landing with a crash that reverberates through the trees. And, lest we think that our reality is complete, picture water gushing and forming icy rivers from a broken water main, covering all in its path with glass-like shards of cutting ice.
Overly dramatic? Maybe. On the other hand, I bet the people who have been evacuated from buildings just before the roof collapsed would disagree. The people who woke up on a Sunday morning to find their basements flooded because of a water main break, and who had to be towed in rafts from their homes, would likely disagree as well.
So how can we cope with living in our winter warzone? Well, if you’re a landlord, make sure that you meet the Minimum Housing and Health Standards, and ensure that the property you’re renting out is well maintained, structurally sound, and safe for your tenants to live in. Most landlords have property insurance, which covers damage to the building (not the contents of the building), so if you don’t have this type of insurance already, you may want to consider getting it. You may also want to consider liability insurance, which covers you if someone is injured on the property. You should also have a term about insurance in the lease, so that you and your tenant both understand which one of you is responsible for insuring the contents of the property.
If you’re a tenant, you can literally buy peace of mind. Go talk to an insurance broker and look into tenant insurance. Why? If there is a problem with the property, your landlord’s insurance will not cover your possessions. You must have your own insurance to cover your contents. You can also get liability insurance. If something were to happen and the property could not be lived in, some policies will cover your costs in finding other accommodations. You can choose the kind of insurance that you want, and what you want it to cover.
It is common for a lease to state that the tenant must have insurance. If the tenant does not have insurance, then the tenant is in breach of the lease. This means that if there is, for example, a leak in the roof, not only will the tenant have to pay to replace all of their things, they might also have to fight an eviction. Also, if a tenant is renting a condominium, the Condominium Bylaws may state that whoever is living in the property must have insurance. Remember, a tenant must obey the Bylaws, and even if a landlord wants to keep a tenant, the Board has the power to evict for the tenant for not obeying the Bylaws.
Until next time, don’t look up at the icicles as you’re walking under them; they’re like pigeons…