We asked our paralegal:
The act states the Landlord cannot charge a tenant for work completed prior to a tenant moving in. The L5 application lists the completion dates. If a Tenant moved in and the work was completed then the Landlord and Tenant Board, based on the tenant’s move in date on the rent roll, would exclude that item from the tenant’s increase. A tenant does not necessarily get charged all the capital items.
The date on the Vertica’ Application (AGI) is March 1, 2013. Item 1 (the Garage Restoration) was completed on June 19, 2012. So anyone who moved in after that date cannot be charged for the Garage restoration. Another example is Item 3 (the Electrical work). The electrical work was completed on June 5, 2011. So a tenant who moved in after this date would not pay for the Electrical work but would pay for Item 1 (the Garage Restoration).
This is the section of the RTA that pertains to this topic: Section 126 (9)
A capital expenditure is not an eligible capital expenditure with respect to a rental unit for the purposes of this section if a new tenant entered into a new tenancy agreement in respect of the rental unit and the new tenancy agreement took effect after the capital expenditure was completed. 2006, c. 17, s. 126 (9).
Here is a link to the Residential Tenancies Act (RTA):
Scroll down to section 126 Item 9
Rents are updated to market value before a new tenant moves in to take into consideration any work that may have been done prior to the move.