Your residential tenant vacates their suite but leaves behind more than memories. Landlords stuck with “abandoned” goods may think that they are in the clear to do what they wish with said goods, but should tread lightly and ensure that they are complying with the regulations set out by their province.
Recourse’s goal is to educate landlords across Canada on the Acts and regulations that outline what they can do and how to do it. This deep dive series breaks down the remedies each Province so you can know things are being done the right way.
Alberta
The province of Alberta has a relatively clear-cut process for dealing with abandoned goods outlined in their Residential Tenancies Act (the Act). The following will outline the process and the key points that landlords need to be aware of before taking action.
Get started with your own legal notice of abandoned goods now or keep reading for more information.
Are the items left behind “abandoned goods”?
The first step a landlord must take is to confirm that the goods left behind satisfy the Act’s definition of “abandoned goods”. The Act defines abandoned goods as:
goods left at residential premises by a tenant who has
(a) abandoned the premises, or
(b) vacated the premises and whose tenancy has expired or been terminated.
This seems relatively straight forward but the landlord should proceed with caution if there is any reasonable doubt that one or both of the above may apply.
Even if it seems clear that the tenant has moved and are not using the premises, if the they have paid their rent and not confirmed in writing that they have officially vacated/abandoned you must respect the possibility that the premises is being used to store their goods while they facilitate the completion of their move. Similarly, if the tenant has given any implication written or otherwise that they intend to collect the goods left behind this could cause the courts to rule in favour of the tenant on the basis that the goods have not officially abandoned.
Doing what you can to build as strong of a case as possible that the tenant is not coming back for any goods will be worth the time and effort.
What is the value of the goods left behind?
Once the goods have been deemed abandoned, the landlord must value the goods to determine how they proceed. Depending on the value the landlord will either be free to dispose of the goods or must be stored in preparation of a sale. Alberta’s “prescribed amount” (aka the determining value) is $2,000 which is relatively high compared to other provinces. This means that if the value of the goods is determined to be less than $2,000 the landlord can proceed with disposal, but if the value is equal to or greater than $2,000 they must follow the outlined procedures to legally sell the goods.
It may seem obvious to look at goods and figure that their value is above or below the “prescribed amount” but landlords should exercise caution before jumping to any conclusions. The Act states that the landlord can proceed with disposal if they have “reasonable grounds” to believe the value to be less than $2,000, but does not define what “reasonable grounds” entails.
People generally value their goods much higher than an outsider may, which means disposal without some concrete backup for your determination may allow a tenant to come back and claim that the old junky coffee table that you threw away was an antique worth some astronomical amount. These claims may hold little water and a judge may see through them in court but as most people do not have the time or desire to be caught up in a lawsuit it is usually worth it to shoot down the potential of these claims before they can happen.
At very least documenting detailed research on similar goods and even obtaining an appraisal or written opinions from experts to have ready in case a claim arises will usually be well worth the time and cost. Landlords should also take detailed photographs of all of the abandoned goods and document dates and details as they proceed.
What do I do if the value of the goods is above $2,000?
If the goods’ value is above the prescribed amount, the landlord must store the goods or arrange for them to be stored on the tenants behalf for at least 30 days.
This storage period is waived and the landlord can proceed with selling the goods for a price they believe to be reasonable if they have “reasonable grounds” to believe:
(a) that the storage of the goods would be unsanitary or unsafe or would rapidly result in total or substantial depreciation in their market value, or
(b) that the cost of removing, storing and selling the goods would exceed the proceeds of their sale
As with determining the value, landlords should do all they can to show that this is the case if they believe it to be so. Photographs, appraisals, and expert opinions should be obtained before disposing of goods in this manner as you should expect to be challenged on both your reasoning for determining that an urgent sale was needed and for the actual sale price of the goods.
For matters that do not qualify for an expedited sale and must be stored, there is no formal requirement for notice to be issued to the tenant or any other interested parties. That being said, if landlords want to be as safe as possible and show they have done all due diligence it may be wise to issue a notice of intention to sell or dispose of the goods (click the link to jump to this notice as offered by Recourse). The landlord may also want to run a lien search against the tenant and any other occupants names to make sure that any lien holders who may have an interest in the goods receive notice as well.
What do I do after the goods have been stored for 30 days?
Once storage period has expired the Act states that the landlord may proceed with sale by public auction or court approved private sale. If the goods are attempted to be sold via public auction and receive no bids the Act states that they may then be disposed of.
What if the tenant comes back for their goods before the sale?
The landlord may charge the tenant any costs spent on moving and storing the goods before returning them. Once the costs have been paid by the tenant the landlord must return the goods right away.
Can the landlord keep the proceeds from a sale of the goods?
The landlord can apply the sale proceeds to their costs of moving, storage, and sale of the goods. They may also apply the proceeds to any amounts rightfully owed by the tenant to the landlord as relating to the tenancy. The landlord should make sure that they have the right to the monies being claimed, and if there is any doubt they may want to consult with a lawyer for clarification.
Any funds left over must be paid to the minister responsible for the Residential Tenancies Act.
How long do I have to keep record of this action?
The Act requires the landlord to keep records on file for at least 3 years after the goods were returned, sold, or disposed of. Records may include descriptions of the goods, any notices or correspondence with the tenant, any research information or valuations of the goods, where and how long the goods were stored, all details of the sale including how the funds were paid out and disbursed, and all dates of any sale, returning of the goods to the tenant, disposal, etc.
For more information on this process you can view the Residential Tenancies Act. Documents offered by Recourse to get started can be found HERE.
For lawyer or auction house referrals you can contact us for free HERE.
