Further to the numerous calls the Office of the Director of Residential Rental Property has been receiving lately from landlords and tenants with respect to the annual Waste Watch fee imposed on property owners, the Director of Residential Rental Property, Twila Whalen, says it is important for the public to be aware that there are legislative restrictions set out in the Rental of Residential Property Act on what landlords can do about passing on the Waste Watch fee to tenants.
Twila Whalen says her office has been receiving a substantial number of calls from tenants who are concerned with attempts by some landlords to add the Waste Watch fee to rent. "There are a lot of rumours about what is being done, or can be done; however, the Rental of Residential Property Act provides a very clear guideline to both landlords and tenants about their rights."
The definition of rent in the Act is very broad and includes "any service, privilege or thing that the lessor may provide to the lessee, whether or not a separate charge is made therefor." Ms. Whalen says it is clear from the legislation that a charge for Waste Watch to tenants by landlords would be considered part of the rent. The Act also limits landlords to one rent increase each twelve month period and prohibits increases above the allowable percentage set by an order of the Island Regulatory and Appeals Commission. The allowable increase set for 2002 is 2.25 percent.
With respect to the $155 annual fee imposed by Waste Watch, Ms. Whalen says, "some landlords have told tenants the fee will be added to the monthly rent, but both they and tenants should be aware that under the Act a three month written notice must be given to tenants for a rent increase." The increase cannot exceed 2.25 percent, and the rent cannot be increased if the rent for a particular unit has been increased within the last twelve months." Ms. Whalen says if a landlord adds this fee to rent, the tenant can refuse to pay it and the legislation would protect the tenant from being evicted for that reason. She wishes to caution landlords that even if a tenant does not object to the increase, it could be disputed at a later date and might result in the landlord having to refund the charge.
Ms. Whalen says the allowable rent increase for 2003 will be determined this summer and announced by the Commission in September. It will take into consideration a variety of factors including the costs associated with Waste Watch. "The Act offers protection to both landlords and tenants. The provision of rental accommodations is important to our society, and we appreciate the investment and dedication of those involved in the rental business. The Act contains requirements for tenants that help protect landlords and their investment."
There is also a provision in the legislation whereby landlords can apply for an increase above the allowable limit; they would have to justify the increase and have it approved by the Director. The provision can only be utilized if rent has not been increased in the past twelve months.
Ms. Whalen says both landlords and tenants should be aware of their rights and obligations. The Office of Residential Rental Property is prepared to assist Islanders who have questions about the Waste Watch fee or other matters relating to the rental of residential property.
The office can be reached at 892-3501 and is open Monday-Friday, 8:00-4:00pm. Legislation can be viewed online at www.irac.pe.ca.