What to do when ...

By Avrom Charach, PPMA Vice President

Recently there have been numerous inquiries to the PPMA office and its board regarding the Residential Tenancies Act (the Act) and processes required by it. This issue will look at a few items that came up in the Executive's most recent meeting with the RTB.

Delays in Hearings on Orders of Possession for Unpaid Rent

A number of managers had expressed concerns about the length of time it takes to get a hearing for Orders of Possession for Unpaid Rent. In meeting with the RTB this month, we were told that hearings for unpaid rent are scheduled such that you will get a quick hearing date if you file earlier in the month. This is because they set up their hearing schedule based on the expectation that OPs for unpaid rent will be filed shortly after the 5th of the month.

Filing by the 10th or 15th of a month will usually result in a hearing date between the middle and end of that month. Filing in the latter part of the month leads to a hearing date in the middle to end of the following month.

Section 91 changes

A number of managers expressed concern with a new RTB interpretation of Section 91 of the Act. Section 91(2) states “A Notice of Termination under subsection (1) must be given not later than 14 days after the director has made an order approving or refusing the rent increase…”. For almost 30 years that had been interpreted to mean that a tenant could only provide Notice of Termination for the 14 days after an order had been issued.

Early in 2004 the RTB took the position that a resident may provide Notice of Termination any time between the filing of an Application for Rent Increase and a final order is issued. Effectively this opens the window of opportunity from 14 days to a year or more depending upon appeals to the RTC regardless of whether a resident is affected by the Application for Increase or not.

The Executive brought our concerns to the RTB at our September meeting. They informed us that their legal department's opinion was that their new interpretation is more correct but asked us to forward our position in writing so that it could be reviewed with an eye to changing the policy if appropriate.
Your executive has undertaken the writing of this position paper and will consult legal counsel in its preparation. We will forward a copy of our position to all PPMA members as well as the RTB and Minister responsible for housing. Please contact Shaun Parsons, PPMA President or myself if you have any information which you feel will support our arguments.

Changes in wording of forms

We were informed the week of September 13-17th that the RTB will be forwarding information on changes to the forms presented below effective October 1, 2004. By the time you receive this newsletter you should have received their formal letter.

Notice of Increase in Rent & Notice to New Tenant - These forms will include more specific wording regarding the application of discounts. As we understand it that the new forms will require a manager to state that a discount is not permanent and length of time it applies.

Notice of Termination By Landlord - Form 5 and Form 7 - As we understand the new forms will include wording that instructs a tenant to contact the RTB in order to exercise their right to object to the landlord's right to terminate their tenancy.

Changes to the treatment of Abandoned Goods - Bill 39 replaces the entire Section 106 of the Act, which deals with abandoned goods. In my opinion this is one of the most positive aspects of Bill 39. The following excerpt explains why:

Section 106.1(2) will read:
“If a landlord is satisfied on reasonable grounds that an item of abandoned property
    (a) has no monetary value; or
    (b) is unsanitary or unsafe to store;
the landlord may remove the item and dispose of it at an appropriate disposal facility”

Section 106 does still require an inventory under certain circumstances, but now specifies that a tenant will be required to pay the reasonable cost of moving and storing their items of value prior to the landlord releasing them.

It is my opinion that these changes will reduce the amount of time that property managers and the RTB spend dealing with abandoned goods. Every PPMA member should read the new Section 106 to ensure that we use it properly.


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