Application for Additional Rent Increase for Capital Expenditures

A Tenant’s Experience in British Columbia

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The “Is It Eligible?” Checklist

More information, including legislative backing, is available by clicking to expand each section.

For All Applications

Was every tenant served within the required timeline?

Information about service of the Notice of Dispute Resolution is in Section 3.1 of the Rules of Procedure. If the answer to this question is no, it doesn’t mean the application will be dismissed. It may allow the tenants to ask for more time though, especially if someone who wants to be involved in the process didn’t have sufficient time to prepare because of service issues.

Has the landlord counted every specified dwelling unit?

A dwelling unit may be included in the calculations even if the landlord is not applying to increase the rent on that specific unit. These definitions are in Section 21.1 of the Regulation. If the answer to this question is no, it doesn’t mean the application will be dismissed, but it may impact the amount they are requesting from each tenant.

Have they done their math correctly in their application?

The Rent Increase Calculator can be used to help verify this. Incorrect math probably won’t get an application dismissed, but can impact the amount the landlord is requesting from each tenant.

Has it been at least 18 months since their last successful (or partially successful) application?

In line with the Regulation, the landlord may not submit an application within 18 months of the previous application, unless the previous application was entirely unsuccessful.

For Each Expenditure

Was the expenditure incurred within the 18-month period before the application date?
Has the landlord been paid, or are they entitled to be paid, from another source?

Specifically, this means a grant, rebate, insurance claim, or lawsuit.

Was any of the cost of this expenditure the labour of the landlord?

If so, that portion is ineligible.

Is this cost expected to recur within 5 years?

If so, it is ineligible.

If the Landlord Claims “End of Useful Life”

Was it actually at the end of its useful life?

Arbitrators have permitted expenditures on these grounds even without evidence of when components / systems were installed.

Policy Guideline 40 is a guideline, not legislation. Just because something is a certain number of years old isn’t enough to make it eligible, at least if it is something that would not cause major negative impacts if it failed. For example, most finishes are still useful until they are damaged or pose a safety issue.

Was all of the work required?

Arbitrators have permitted work that is part of the same “project” even when there is no clear requirement for the additional work.

For example, if the floor was old, damaged, and needed replacement, it would be at the end of its useful life. That work may require pulling off baseboards, but it shouldn’t require redoing all the drywall in the entire room. The floor may be eligible, replacement baseboards may be, the drywall may not be.

Was it properly maintained so that the element would last as long as possible?

Maintenance requirements for elements are usually available from the manufacturer. The landlord should supply information on the elements that were replaced and the maintenance that was done. If they don’t, you may request it. You can use this information to determine if the proper maintenance was completed on the recommended schedule. If they refuse or are unable to provide this information, it may be an opportunity where “adverse inference” is appropriate on the part of the arbitrator.

Is it a major system or component?

If the Landlord Claims “Reduction in Energy Use or Greenhouse Gas Emissions”

Does the work done actually reduce energy use or greenhouse gas emissions?
Was all the work in this expenditure required to be done for this purpose?

If the boiler in the building was being replaced with a more energy efficient one, they don’t (generally) need to redo all the pipes in the building to make that happen.

If the Landlord Claims “Improvement in Security”

Was all the work in this expenditure required to be done for this purpose?

Replacing security cameras (generally) doesn’t mean they need to repaint the entire room where it was installed.


Disclaimer

This site has been created by tenants, for tenants, to help them fight against improper applications and ineligible expenditures. I am not a lawyer. This is not legal advice. It is provided for informational purposes only, and will always be evolving.

See something that’s incorrect? Is there something that you think should be added? Do you have questions for a fellow tenant? Email me at [email protected]!