What can and cannot be restricted?
Section 27 of the Residential Tenancy Act prohibits ending or restricting a service essential to using the rental unit as living accommodation or one that is a material term of the tenancy agreement. Essential services generally include heat, hot water and electricity. An amenity such as optional internet may be non-essential, but it could still be a material term depending on the agreement and circumstances. Manufactured home park site tenancies are subject to the corresponding rule under section 21 of the Manufactured Home Park Tenancy Act.
Notice and required rent reduction
For a service that can lawfully be reduced or removed, give the tenant at least 30 days' written notice using RTB-24. The rent must be reduced by an amount equivalent to the reduction in the tenancy's value. The reduction is not optional or deferred until a tenant complains; otherwise eliminating an included amenity without adjusting rent can amount to an unlawful hidden rent increase. The appropriate amount depends on the value lost, and may differ from the landlord's own cost of supplying the service.
Complete RTB-24 accurately
- Identify each tenant, the rental unit or manufactured home site and the landlord.
- Enter the effective date at least 30 days after legally sufficient notice, and describe the service or facility being terminated or restricted and the precise nature of the change.
- Specify the dollar amount of the rent reduction, the payment frequency, its effective date and the new rent, then sign and date the form.
- Serve the completed notice through a method permitted for tenancy documents and preserve a copy and evidence of service. Allow for deemed receipt where applicable.
What if a tenant disagrees?
The tenant may ask the landlord to maintain the service or propose an appropriate rent reduction. If they cannot resolve it, the tenant can apply to the RTB for an order restoring the service, setting a proper rent reduction or awarding compensation for its lost value. The official form cautions tenants not to withhold rent unilaterally while disputing the change.
Common mistakes
Trying to remove an essential or material service, giving less than 30 days' notice, listing a service without describing how it will be restricted, offering no rent reduction, or confusing RTB-24 with the annual rent-increase notice RTB-7. The rule applies to both residential rental units and eligible manufactured home sites, although the underlying statutes differ.