Move & User Fee Reviews
Regular Review of Move Fees – A Recent Case Regarding Furnished Move Fees
Under the Strata Property Act (SPA), section 6.9 of the Strata Property Regulation specifically permits strata corporations to impose user fees for common property, common assets, or other services provided. However, such fees must be “reasonable” and tied to the actual costs incurred by the strata. User fees, including move-in and move-out fees, play an essential role in helping strata corporations recover costs associated with specific services.
Strata Corporations often implement move-in and move-out fees to help cover the costs associated with wear and tear on common property, as well as administrative oversight during the moving process. However, a recent decision by the BC Civil Resolution Tribunal (CRT) serves as a timely reminder of the importance of regularly reviewing these fees (and other user fees) to ensure they align with current legal standards and practices.
In the decision Baines v. The Owners, Strata Plan EPS 3242, the CRT ruled that a Strata Corporation’s standard move-in fee of $300 was not reasonable when no furniture was involved. In this case, the resident was charged the full move-in fee, despite only bringing in a few personal items, as their suite was already furnished. The CRT found that the Strata Corporation did not have a clear rationale for charging the same fee regardless of whether a move involved large items like furniture or not. The Tribunal ultimately ordered the Strata to reduce the fee to her (though not to amend their bylaws which the Strata must undertake on it’s own), emphasizing that move fees should reflect the actual impact on the building and the work required by staff.
In particular, the CRT decision noted the following criteria which must be taken into account in establishing the reasonableness of move fees:
29. CRT decisions have found that moving fees may cover administrative costs associated with a new occupant of a strata lot, including communicating with the moving person, recording new occupant information, arranging elevator use, arranging for inspection of the common property before and after the move, damage to the common property, excessive wear and tear of the common property, updating the entry phone and key fob system and records, cleaning the common areas, supervising the move, and allowing utility access for services.
30. Bylaw 37 indicates that the fee includes the concierge’s time to schedule the move, do before and after inspections, lock the elevator from use by other persons, protect the elevator, ensure that bylaws have been provided, and collect administrative documents.
Note that this is a non-exhaustive list of considerations- indeed there were more than 40, demonstrating just how complex the question of “are our fees reasonable?” is.
For a detailed summary, the Vancouver Is Awesome article on this case provides further insights, highlighting the Tribunal’s emphasis on fairness and transparency in fee structures. You can read the article here.
Key Takeaways for Strata Councils
This decision underscores the need for Strata Corporations to periodically review their bylaws and rules, particularly those regarding move-in and move-out fees, amenity bookings, guest suite rentals and other user fees, to ensure they are reasonable and in line with current legal precedents. A standard “one-size-fits-all” fee may not always be appropriate, especially if it does not account for the varying levels of impact that different types of moves may have on the property.
Best Practices for Reviewing Bylaws
- Regular Bylaw Review: Strata Councils should make it a practice to review bylaws at least annually, with a focus on areas that can have significant financial or operational implications, such as move fees. This is an opportunity to confirm that your bylaws are not only compliant with current legislation but also reflect the practical realities of your building.
- Consult Legal Counsel: Engaging legal advice during the review process is essential. Lawyers who specialize in Strata law can provide guidance on recent CRT decisions and other legal developments that may impact how your bylaws are interpreted. This helps ensure that your fees are justifiable and defendable, should they be challenged.
- Objective Criteria for Fees: Consider adopting a tiered fee structure that takes into account the scope of the move. For instance, a reduced fee or waiver for moves involving minimal items could be more equitable and less likely to attract disputes.
- Transparency with Owners: Clearly communicate any changes or updates to move fees with your owners and residents. Providing a rationale for fee structures can help build trust and reduce the likelihood of complaints.
Conclusion
The CRT decision in Baines v. The Owners, Strata Plan EPS 3242 highlights the need for Strata Corporations to stay current with legal standards. Regularly reviewing and, if necessary, revising bylaws—particularly those relating to fees—can help avoid costly disputes and ensure fair treatment of all residents. By consulting with legal counsel, Strata Corporations can better align their bylaws with both best practices and evolving legal standards, ultimately benefiting the entire community.
If your Strata Corporation hasn’t reviewed its bylaws recently, now is the perfect time to start. A proactive approach to bylaw management can save time, money, and headaches in the long run. Please discuss with your Property Manager and we can assist with engaging a qualified strata lawyer with experience in this area.
