A Welcome Update for Landlords and Tenants
We are pleased to share that Policy Guideline 40 has now been reinstated with further refinements, bringing much-needed clarity to landlords, tenants, and arbitrators regarding damage claims and capital expenditures.
This updated guideline outlines the concept of useful life—the expected lifespan of various rental property components—and how it impacts compensation claims for damage or loss. It also plays a crucial role in assessing additional rent increases related to major repairs or capital expenditures.
Key refinements include:
✅ Clearer definitions of compensation for damage and betterment adjustments.
✅ Updated estimates for the useful life of property features such as flooring, appliances, and plumbing.
✅ More guidance on determining reasonable claims for replacement costs.
We encourage our members to review the revised Policy Guideline 40, now available on the Residential Tenancy Branch (RTB) website. These changes provide a fair and consistent approach for all parties involved in tenancy agreements.
🔗 Read the full guideline here: RTB Website
