Council can’t impose fees without rule or bylaw


Sunday, September 21st, 2008

Tony Gioventu
Province

Dear Condo Smarts: I own two rental units in Vancouver. A number of us owners have noticed that our strata fees are not being allocated the same way ,so I started asking questions.

Without my knowledge, one of my tenants had requested the additional use of a parking stall. The council granted the request but there was a charge of $125 per month. After three months the tenant stopped paying the rental, so the council decided to add it to my monthly strata fees.

Without advising me, the property manager adjusted my direct withdrawal amount to pay the parking-space rental. Several other owners have also noted similar problems. I have two questions: How do we stop the strata from charging for items we didn’t authorize? And how does the strata get to charge additional rental fees above strata fees?

— JW, Edmonton

Dear JW: Legislation permits the charge of user fees for common property and common assets if the fee is reasonable and it is set out in either a bylaw duly passed and registered by the corporation, or a rule created by council that has been ratified at the next general meeting.

Council itself does not have the ability to impose the fee. Council may create a rule that sets out the conditions of the user fees and the rates, and then the owners by majority vote have to ratify those user fees and rates at their next general meeting.

User fees are designed to permit additional benefits to owners, tenants and occupants on a user-pay basis. They include items such as additional parking, storage lockers, common grounds for uses like greenhouses and community gardens, moorage at marinas, health facilities and golf-course memberships.

Strata councils also need to understand that rules and bylaws are enforced against the individuals who enter into the agreements or violate bylaws. If the tenant stopped paying, the strata corporation has the right to remove the use of the space; it does not have the right to impose this against your strata fees and direct payments without your consent.

It is in the best interest of both the landlord and the tenant to identify such additional costs and bylaw fines and penalties in your tenancy agreement before you agree to the rental. Landlords who rent strata units in B.C. need to be aware that they ultimately are liable for their tenants’ actions if the tenant departs and they are left with fines and costs incurred by the tenant.

A common cost landlords do not anticipate is a large insurance deductible if, for example, the tenant floods the building. If the tenant has no insurance or is unwilling to pay the amount, the landlord may be faced with the cost.

Contact your council or manager and address the matter quickly. If there are additional costs or violations, the strata must — under section 135 of the Strata Property Act of British Columbia — provide you with notice of a violation of a bylaw or rule, and an opportunity of a hearing or written response before any fines or penalties may be imposed.

Tony Gioventu is executive director of the Condominium Home Owners’ Association (www.choa. bc.ca). E-mail him at tony@ choa.bc.ca.

© The Vancouver Province 2008



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