Separate Agreements
Rent Board Regulation 1012 allows for housing services, such as storage space and parking, to be rented separately if they were not included in the base or initial rent.
Overview
For units fully covered by the Rent Ordinance, all housing services included in the base rent ceiling are considered regulated housing services and shall continue to be provided to tenants in the manner in which they were previously provided. Other housing services are considered unregulated housing services and may be the subject of separate agreements when such agreements meet the requirements described below.
Important information about utilities
For tenancies that started on or after February 6, 2024, utilities for fully covered units cannot be the subject of separate agreements. Landlords can charge tenants for utilities only if either: the cost of the utilities is included in the base rent ceiling, or the utility is separately metered and the lease requires the tenant to place the utility in their name. A landlord who is charging a tenant for utilities separately from rent on or after February 6, 2024, may file a petition with the Rent Board to add the average cost of utilities to the rent ceiling. Rent ceiling increases must be made through the petition process, but the parties can ask to waive the hearing if they agree on the increase, and the agreement and proof submitted with the petition meet certain standards. See our Rent Adjustment Petitions page for details.
Requirements for creating separate agreements
Separate agreements between owners and tenants are allowed when the agreement is in writing in a document separate from the rental agreement and the agreement meets all of the following criteria:
- The agreement to pay a separate fee for unregulated housing services must not be a condition of tenancy
- The terms of the separate agreement must be commercially reasonable
- The tenant's termination or breach of the separate agreement may not be grounds for eviction
Owners and tenants may, if they wish, convert unregulated housing services covered by separate agreements to regulated housing services by stipulation in an Individual Rent Adjustment Petition filed with the Board, by appropriate reference to Regulations 1229 and 1269.
Terminating Separate Agreements
Separate agreements may be terminated by either party upon 30 days’ written notice. Notice of termination of an agreement for rental of furniture, however, may not be given less than 30 days after the agreement was signed by the parties.
