RTB Policy Guideline 16 Updated: Same Test, New Case Law References

The Residential Tenancy Branch has updated Policy Guideline 16 (Compensation for Damage or Loss) as of February 2026. While the structure has been revised and the guideline reformatted, the legal test for compensation under section 7 of the Residential Tenancy Act (the "Act") remains the same.

To succeed in a compensation claim, a party must still prove, on a balance of probabilities, that there was non-compliance with the Act, the regulations, or the tenancy agreement; that loss or damage resulted from that non-compliance; the amount of the loss; and that reasonable steps were taken to minimize the damage. That framework has not changed.

What has changed is the RTB’s express reliance on recent Supreme Court of British Columbia decisions.

The updated guideline now references Sahota v. Director of the Residential Tenancy Branch, 2010 BCSC 750 and IMH 415 & 435 Michigan Apartments Ltd. v. Banman, 2023 BCSC 448 in its discussion of aggravated damages. These cases confirm that aggravated damages may be awarded where there is malicious, high-handed, or reckless disregard for a tenant’s welfare, but also reinforce that such awards are rare and require a higher evidentiary threshold.

The guideline also now cites Volpe v. Stojkovich, 2025 BCSC 1220 to clarify that repair costs do not need to be incurred before compensation can be awarded. Properly supported estimates may be sufficient evidence, provided they reflect reasonable remedial work at a reasonable rate.

In short, the RTB is signaling alignment with the courts. The compensation test itself has not shifted, but arbitrators are being directed to interpret and apply it consistently with recent judicial authority.

Compensation claims at the RTB can look straightforward on paper, but the difference between a dismissed claim and a successful award often comes down to how the evidence is framed and how the law is argued. With the RTB now expressly grounding Guideline 16 in recent Supreme Court authority, the margin for error is shrinking. If you are advancing or defending a compensation claim and want clarity on your position before the hearing, contact us to book a consultation. Proper preparation makes all the difference.