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Are security deposits legal in Alberta?

Yes. At the beginning of a tenancy, landlords may collect a deposit in the form of cash or property to cover costs such as damage to the unit, unpaid rent, cleaning that goes beyond normal wear and tear, and any other agreed-upon fees – such as legal fees, utilities, or late rent fees. The total amount of the security deposit cannot exceed one month’s rent. If it does, that deposit is considered illegal and unenforceable, even if it was agreed upon in the lease agreement.

What are the different types of security deposits in Alberta?

Under the Alberta Residential Tenancy Act, landlords can collect any number of refundable fees such as pet deposits, key deposits, damage deposits, etc. so long as the total amount of the deposit does not exceed one month’s rent.

Landlords can also request non-refundable parking or cleaning fees, but these are not considered part of the security deposit and are not subject to the same rules. For example, a landlord in Alberta may charge a non-refundable $200 pet fee, to be used for cleaning the carpets at the end of the tenancy. This is considered extraneous to the security deposit and does not have to be returned at the end of the tenancy, provided that the amount is reasonable to cover the cleaning and is agreed upon in the lease agreement.

Are damage deposits legal in Alberta?

Damage deposits are considered to be another name for security deposits or rent deposits in Alberta, and are governed by the same set of rules.

How much is a damage deposit in Alberta?

A damage deposit, or security deposit, cannot exceed what the tenant would pay for a full month’s rent. A damage deposit can also include key deposits, pet deposits, or other types of refundable charges, but the total amount must still be less than one month’s rent and can’t be increased during the period of the tenancy agreement.

Are damage deposits refundable?

Yes, security or damage deposits are refundable so long as they aren’t used to cover the costs outlined in the lease agreement. Landlords should provide tenants with a receipt for the security deposit and any other refundable fees that are collected, however, this isn’t required by law.

All security deposits that are collected must be held in an interest-bearing trust account and deposited within two days after the payment is collected. Any interest that is accrued on the deposit must also be returned to the tenant. The full amount must be returned to the tenant within 10 days of the end of the tenancy, or a written statement of account must be provided if the landlord plans on deducting from the deposit.

Can a landlord ask for a deposit before signing a lease in Alberta?

If a landlord wishes to collect a rent deposit, this should be done after signing the lease and before move-in. The terms of the deposit and the conditions for its return should be laid out in the lease agreement and signed by both parties.

If a landlord requests a deposit be paid before signing the lease, exercise caution – this is quite often a sign of a rental scam. While landlords can and should collect a rent deposit before move-in day, this should only be done once a contract has been signed.

How long does a landlord have to return the damage deposit in Alberta?

If the deposit is to be returned in full with no deductions, the security deposit and any interest accrued must be returned to the tenant no later than 10 days after they vacate the rental property.

If there are any deductions to the deposit for damages, repairs, utilities, late fees, or other specified reasons, these deductions must be listed in a statement of account and provided to the tenant within 10 days, along with the costs or an estimate of what the costs will be. Within 30 days, the landlord must provide the tenant with a final statement of account and any remaining balance of the deposit.

If a tenant does not receive either the full amount of the deposit or a statement of account within 10 days of ending the tenancy, they should contact the landlord in writing. If you still don’t receive anything from the landlord, renters may proceed through the court or the Residential Tenancy Dispute Resolution Service (RTDRS).

Can a landlord deduct from the deposit for cleaning?

Landlords may only use the security deposit to cover cleaning fees if the cleaning is required due to abnormal use of the property. Cleaning that is required because of normal wear and tear cannot be deducted from the deposit.

Can a landlord charge for cleaning in Alberta?

If a landlord wishes to explicitly charge for cleaning, they must collect this as a non-refundable fee, which must be agreed upon in the lease agreement. This is separate from the security deposit and should not be held in the same way. For example, if the renter plans on bringing a pet, a landlord may want to charge a non-refundable $200 cleaning fee to cover the extra cleaning that may be required.

What is the maximum deposit a landlord can take?

The total refundable deposit a landlord can collect in Alberta, including key deposits, pet deposits, or other refundable fees, cannot exceed one month’s rent.

Non-refundable fees are not subject to the same rules but must still be reasonable for the purpose they’re collected for.

Can a landlord charge you after you move out?

If a landlord plans on deducting from your security deposit after you move out, they must provide a written statement of account to you within 10 days of ending the tenancy. The deposit, minus any deductions, must be provided to you within 30 days of moving out, alongside a final statement of account.

The only situation in which a landlord can charge you after you move out is for unpaid rent or compensation, which can be done for up to a year after the tenant moves out.

How often does a landlord have to paint in Alberta?

There’s no specific timeline for when landlords have to paint in Alberta, and it is not required to paint the unit in between each tenancy. Under the Minimum Housing and Health Standards, landlords are required to ensure that walls and ceilings are in good repair, with no cracks or holes.

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Rent deposit definition

A rent deposit in Ontario is a payment a landlord can legally collect to cover the last month’s rent of a tenancy. It cannot be used for damages or missed rent during the lease and must not exceed one month’s rent (or one week’s rent for weekly rentals).

Types of Ontario Rent Deposits

Renters in Ontario may see various kinds of deposits when searching for a place to rent in Ontario, and it’s important to know which of these are legally accepted and required of them. Let’s break it down quickly:

1. Rent deposits – We’ve already covered these at length here, but this is the main type of deposit Ontario renters will be faced with. The maximum amount for this type of deposit is equivalent to one month’s rent, and can only be withheld as payment for the specified month.
2. Key Deposits – Landlords in Ontario are also able to request a deposit for lost or damaged keys, in the event they need replacing. This amount shouldn’t exceed a reasonable cost for replacement, and tenants are able to request receipts to ensure a reasonable amount was taken.
3. Damage Deposits – In Ontario, landlords are not legally allowed to collect damage deposits at the time of signing a tenancy agreement. If damages to the unit or building occur during your tenancy, the landlord is required to go through the Landlord and Tenant Board to seek payment.
4. Pet Deposits – These are also illegal for landlords to collect under Ontario law.
5. Deposits that exceed one month/week’s rent – Landlords in Ontario are only allowed to request a deposit equal to the amount owed for one period — either one month or one week, depending on the type of lease.

Is collecting first and last month’s rent legal in Ontario?

Whether you’re renting an apartment, a condo, a house, or any other type of residential property, landlords in Ontario are able to request both first and last month’s rent as a deposit – so long as they apply the first month’s sum as a payment for the first month of your tenancy. In fact, neither of these amounts are technically considered a deposit, as the landlord is only able to use the money as a payment for the last month of your tenancy, rather than to cover any damages.

After giving notice to end the tenancy, tenants will only need to pay the second-to-last month’s rent as the last month’s rent is already covered by the rent deposit.

Is a security deposit legal in Ontario?

Security deposits are not legal in Ontario under the province’s tenancy rules. The only acceptable forms of deposit in the province are a rent deposit, equal to one full month’s rent, which may only be used to cover the final month’s rent payment, as well as a key deposit if applicable.

While a rent deposit may sound similar to a security deposit, they function differently in that the landlord may not withhold any portion of the rent deposit for a purpose other than covering the last month’s rent. If there are charges for damages or cleaning, the landlord must apply to collect this amount via the LTB.

Key Deposits in Ontario?

Key deposits are legal in Ontario, provided they meet a couple of important conditions:

• The deposit must be a reasonable amount to cover the cost of replacing the keys
• The deposit is refundable

As soon as the tenant(s) return their keys, the landlord must also return the key deposit in full. If they do not return the keys, the landlord may withhold the deposit to cover the cost of replacing them.

Is a damage deposit legal in Ontario?

Ontario landlords cannot legally collect damage deposits at the beginning of the tenancy. Rent deposits and key deposits are the only permitted form of deposit in the province.

If damages to the unit or building occur during your tenancy, the landlord is required to go through the Landlord and Tenant Board to seek payment. In this instance, an adjudicator will determine how much is owed.

Pet Deposits in Ontario?

These are also illegal for landlords to collect under Ontario law. Deposits that exceed one month/week’s rent – Landlords in Ontario are only allowed to request a deposit equal to the amount owed for one period — either
one month or one week, depending on the type of lease.

How much is the Ontario rent deposit?

Under Ontario’s Residential Tenancies Act, the maximum amount landlords can request for a rent deposit in the province is one full month’s rent or the rent cost for one rental period.

Whichever amount is less is the maximum that tenants can be made to pay.

Can a landlord ask for a damage deposit in ontario?

No, in Ontario, a landlord cannot ask for a damage deposit. The Residential Tenancies Act only allows a rent deposit (equal to one month’s rent) to be used for the last month’s rent, not for damages or repairs.

Ontario Rent Deposit Receipt

One should always ask for a rent deposit receipt when paying the last month’s rent in Ontario, as it serves as proof of payment and confirms the amount and purpose of the deposit. This protects the tenant legally, helps avoid future disputes, and ensures transparency in the rental agreement. Importance of a Rent Deposit Receipt in Ontario:
✅ Proof of Payment: Confirms you paid the deposit and the amount.
✅ Clarifies Usage: Shows it’s specifically for last month’s rent (not damages).
✅ Legal Protection: Helps if there’s ever a disagreement or issue with the Landlord and Tenant Board.
✅ Transparency: Promotes trust and accountability between tenant and landlord.

It’s a reasonable and common request—just politely ask your landlord for a written receipt for your rent deposit.

What is the interest rate on rent deposits in Ontario?

In Ontario, landlords must pay the tenant interest on their rent deposit every 12 months, if collected. The percentage of interest paid will be the same as the yearly rent increase guideline, decided by the province of Ontario for each calendar year.

If the landlord doesn’t pay this interest, they may also reduce the amount needed to update the rent deposit so that it equals the current rent. Tenants may also withhold the interest amount from a future rent payment or file an application for a rebate if necessary.

Are rent deposits refundable in Ontario?

Rent deposits must always either be returned to the tenant in full, or used to pay for the final month’s rent. Landlords may not withhold any portion of the deposit to cover things like damage or cleaning.

Common Mistakes Landlords Should Avoid When Handling Ontario Rent Deposit?

Here are common mistakes landlords should avoid when handling Ontario rent deposits:

1. Requesting More Than Allowed – Only one month’s (or one week’s) rent can be collected as a deposit, strictly for the last month’s rent.
2. Using the Deposit Improperly – It cannot be used for damages, cleaning, or missed rent during the tenancy.
3. Not Paying Interest – Landlords must pay annual interest on the rent deposit, as set by the Ontario government.
4. Failing to Provide a Receipt – Always give a written receipt for the rent deposit to ensure transparency.
5. Not Applying It to the Final Month – The deposit must be used for the last month of the tenant’s stay, not held beyond that.

FAQs: Rent deposits in Ontario

Are rent deposits legal in Ontario?

Yes, rent deposits are legal in Ontario so long as they are requested on or before the landlord and tenant enter into a tenancy agreement. If a landlord hasn’t requested a rent deposit before or at this time, they’re unable to ask for it during the course of your tenancy.

What happens if a landlord doesn’t return my deposit?

Normally, in the case of a last month’s rent deposit, this sum is not returned to the tenant but rather is used as payment for the final month of their tenancy. If the money isn’t used in this way, ask your landlord to return it. If they refuse, renters can call the Ontario Government’s Rental Housing Enforcement Unit which will seek out the deposit on their behalf. You can also apply to the Landlord and Tenant Board to order your landlord to return the deposit.

It’s important to note that landlords cannot demand damage deposits in Ontario, and can’t use your rent deposit to pay for any damage to the unit. Any amount to be paid for damages has to be requested independently of a rent deposit.

Can my landlord ask for three months’ rent as a deposit?

No. The amount requested for a rent deposit cannot exceed one month’s rent. As we mentioned above, the maximum a landlord can request from their tenant at the time of signing the tenancy agreement is first and last month’s rent. Both of these amounts are to be used as rent payments for their respective months.

Are landlords in Ontario allowed to demand post-dated cheques?

While the individual terms of a lease may vary, tenants are not legally obligated to provide post-dated cheques for rent payments, and landlords are not allowed to demand them. The same goes for direct debit payments. If the tenancy agreement specifies the use of either of these and the renter has signed, then that form of payment may be contractually required.

Can a landlord refuse to return my rent deposit?

No matter what the deposit was collected for, landlords in Ontario must return the amount or use it as payment for rent. In the case of key deposits, this amount is only to be used to replace lost keys, and the amount may not be larger than a reasonable cost to do so. As far as damages go, landlords are not legally able to use any deposit to cover any costs and must go through the Landlord and Tenant Board to seek out any money for damages.

For what reasons can a landlord keep my rent deposit in Ontario?

Landlords may keep your rent deposit only if it is agreed to be used as payment for your first and last month’s rent, or if they collected a key deposit and need to use it to replace any lost or damaged keys.

Can a landlord keep my rent deposit if I break my lease?

Generally, though, rent deposits in Ontario are only able to be used for their specified purpose, which is as payment for the final month of your tenancy. This means that landlords are not able to use this amount for any other purpose, such as a charge for breaking your lease early. They can, however, retain this amount as payment for your final month’s rent if you haven’t already paid it.

In any event, tenants should always be upfront with their landlord should they need to break a lease. Sometimes, things happen beyond our control, and the best way to avoid conflict and the potential loss of a rent deposit is to be honest about your situation and work to find a mutually agreeable solution.

Does my landlord have to pay interest on my rent deposit in Ontario?

Beginning January 1st, 2025, landlords may raise rent up to 3.5%. Your landlord can either add this amount to the deposit or opt to give it to you directly. This is done so that your deposit is still able to cover your last month’s rent regardless of the increase.

Do I have to pay for both my rent deposit and first month’s rent?

If that’s what is specified in your tenancy agreement, then yes. Landlords in Ontario are within their rights to ask for both the first and last month’s rent. This is because the first month’s deposit is immediately received as a payment. Landlord can hold deposit up to one month’s rent to be used at a later date.

Does my landlord have to provide receipts for a rent deposit?

Landlords in Ontario are obligated to produce receipts free of charge for any type of rent payment. Any type of rent deposit is included in this, as you’re technically paying for a month’s rent ahead of time. To avoid getting into trouble down the line, it’s always a good practice to request these receipts. Collect receipts when you’re negotiating your lease and paying your rent deposit or any other deposit.

Do I have to pay my last month’s rent deposit before signing a lease?

Landlords in Ontario are legally allowed to request a last month’s rent deposit before or as part of your tenancy agreement. However, as we’ve mentioned, this amount is only to be used for its specified purpose. If you pay for a rent deposit and later decide not to go forward with the lease agreement, that amount must be returned to you.

How is the rent deposit refunded in Ontario?

Landlords in Ontario must return the rent deposit to the tenant within 30 days of the tenant vacating the rental unit.

The landlord can only deduct from the deposit for unpaid rent, damage to the rental unit, and other costs associated with the rental agreement.

The post Ontario Rent Deposits: Know Key, Damage, Security Deposit and others in Ontario appeared first on liv.rent blog.

What is a Damage Deposit BC?

A damage deposit in British Columbia (BC), Canada, is a security deposit that a landlord collects from a tenant at the beginning of a tenancy. It’s intended to cover the cost of repairing damage beyond normal wear and tear that may occur during the tenant’s stay.

What types of deposits are permitted in BC?

Landlords in BC can require a tenant to pay:

a security deposit equivalent to one-half of one month’s rent; and
if they have a pet, a pet deposit equivalent to one-half of a month’s rent (so a full month’s rent in the case of pet-owning tenant)
Tenants must pay the security deposit within 30 days of entering into the tenancy agreement or the pet damage deposit within 30 days of when it’s required.

Damage Deposit Rules BC: What Landlords and Tenants Need to Know

For Tenants:
You can be asked to pay a damage deposit up to half a month’s rent.
If you have a pet, a pet damage deposit (also up to half a month’s rent) may be required.
You must pay the deposit within 30 days of signing the tenancy agreement.
Keep a receipt or proof of payment.
The deposit is refundable, minus any deductions for damage beyond normal wear and tear.
You have the right to a move-in and move-out inspection with the landlord.
The landlord must return the deposit within 15 days after tenancy ends and you provide a forwarding address.

For Landlords:
You can only collect a damage deposit up to half a month’s rent and a separate pet damage deposit if applicable.

You must provide a receipt for the deposit.
Conduct move-in and move-out inspections using the official RTB forms.
The deposit must be kept separate from personal funds and returned promptly.
You can only keep the deposit to cover damage beyond normal wear and tear or unpaid rent (with tenant agreement or RTB order).
You must return the deposit (or balance) within 15 days of tenancy ending and receiving the tenant’s forwarding address.

Accuracy Check Against TenantBC/RTB Guidelines

Official Sources
The guidelines match with what’s published by:
Residential Tenancy Branch (RTB): https://www.gov.bc.ca/landlordtenant
TenantBC and other BC tenant advocacy groups who follow RTB regulations.

Residential Tenancy Act about Damage Deposit in BC

Key Rules from the Residential Tenancy Act
1. Deposit Limit: A damage deposit cannot exceed half a month’s rent. If the tenant has a pet, the landlord may also collect a pet damage deposit, also capped at half a month’s rent.

2. Payment Deadline: The tenant must pay the deposit within 30 days of signing the tenancy agreement. If the tenant fails to pay, the landlord can issue a Notice to End Tenancy.

3. Condition Inspections: Landlords and tenants must complete move-in and move-out condition inspection reports using the prescribed RTB form. These inspections help determine if there’s any damage beyond normal wear and tear.

4. Deposit Return Timeline: The landlord must return the deposit within 15 days of the tenancy ending and receiving the tenant’s written forwarding address.

5. When a Landlord Can Keep the Deposit: Only if:
The tenant agrees in writing, or
The landlord gets a dispute resolution order from the Residential Tenancy Branch.

6. Deposit Cannot Cover:
– Normal wear and tear (e.g., faded paint, worn flooring).
– Unpaid rent, unless specifically approved through proper legal process.
– Penalties for Not Following the Law
– If the landlord does not conduct the inspections, they may lose the right to keep any part of the deposit.
– If the tenant refuses to participate, they may lose the right to get the deposit back.

📎 Reference Sections of the RTA:
Section 19: Security deposit limits.
Section 24: Condition inspection requirements.
Section 38: Return of security and pet damage deposits.
Section 36: Forwarding address requirement.
Section 40: Dispute resolution for deposits.

Can landlords ask for first and last month’s rent in BC?

Landlords in B.C. are not able to request first and last month’s rent upfront, as they would be in Ontario and other provinces. B.C. has its own rules when it comes to how much money landlords can collect at the beginning of the tenancy, as well as when and how that money can be kept and used.

In the province, the maximum a landlord or property manager can collect at the beginning of a tenancy is the equivalent of half a month’s rent as a security/damage deposit, and another half a month’s rent as a pet damage deposit, if applicable. Once these deposits are accepted, the tenancy is generally considered to have begun. First month’s rent is typically paid on the first day of the tenancy.

What types of deposits are permitted in BC?

Landlords in BC can require a tenant to pay:

• a security deposit equivalent to one-half of one month’s rent; and
• if they have a pet, a pet deposit equivalent to one-half of a month’s rent (so a full month’s rent in the case of pet-owning tenant)

Tenants must pay the security deposit within 30 days of entering into the tenancy agreement or the pet damage deposit within 30 days of when it’s required.

Is a damage deposit legal in BC?

A security or damage deposit is legal in B.C. so long as it is equal to no more than half of the first month’s rent. So long as there is no damage to the unit, and the landlord doesn’t seek dispute resolution to withhold part or all of the deposit, the full damage deposit must be returned under B.C. tenancy law.

Is a pet damage deposit legal in BC?

Landlords may also request a pet damage deposit, also referred to as simply a pet deposit, on top of the security or damage deposit. This can either be collected at the start of the tenancy, at the time of signing a lease, or during the tenancy if the tenants get a pet with the landlord’s consent.

Like a security or damage deposit in BC, the pet deposit can equal a maximum of half a month’s rent. Service or guide dogs are also exempt from this type of deposit. As well, this amount can only be used to cover the costs of damages associated with pets, unless the tenant agrees in writing or an arbitrator permits it.

Paying and Collecting the Damage Deposit BC

 For Tenants – Paying the Deposit
Amount: You are only required to pay up to half a month’s rent as a damage deposit.

Pet Deposit: If you have a pet, you may also need to pay a separate pet damage deposit, also limited to half a month’s rent.

When to Pay: You must pay the deposit within 30 days of signing the tenancy agreement.

Receipt: Always ask for a written receipt, or keep a record if paying electronically (e-transfer, etc.).

Required to Secure the Tenancy: Not paying on time may result in the landlord ending the tenancy with proper notice.

 For Landlords – Collecting the Deposit
Deposit Limit: You can collect a maximum of half a month’s rent as a damage deposit.
You may also collect a separate pet damage deposit if the tenant has a pet (also up to half a month’s rent).

Timing: Request the deposit at the time of signing the tenancy agreement. The tenant has 30 days to pay it.

Receipts: You must provide a written receipt unless the tenant has clear proof of payment.

No Overcharging: Collecting more than the legal limit (e.g., a full month’s rent or combined deposits above 1 month) violates the Residential Tenancy Act.

Damage Deposit Rules in BC: Landlords

 1. Maximum Amount
You may collect a damage deposit up to half a month’s rent. If the tenant has a pet, you can also collect a pet damage deposit, also capped at half a month’s rent.

 2. Collection Timeline
You must request the deposit at the time of signing the tenancy agreement. The tenant must pay the deposit within 30 days.

3. Provide a Receipt
You must give the tenant a written receipt, unless the tenant already has proof (e.g., e-transfer record).

4. Complete Condition Inspections
You must do move-in and move-out inspections with the tenant. Use the official RTB Condition Inspection Report form.

Failing to do this may result in losing your right to claim the deposit.
5. Deposit Return Rules
You must return the deposit within 15 days of: The end of tenancy, and Receiving the tenant’s written forwarding address.
 6. When You Can Keep It
You can only keep all or part of the deposit if:
The tenant agrees in writing, or You obtain a dispute resolution order from the RTB.

7. Wear and Tear is Not Deductible
You cannot deduct for normal wear and tear (e.g., faded paint, worn carpet).

8. No Non-Refundable Deposits
You cannot charge any non-refundable “cleaning” or “damage” fees outside the legal deposit limits.

Can landlords collect a key deposit in BC?

Unlike in Ontario, B.C. landlords cannot collect a key deposit at the start of the tenancy, provided that the key or fob is the tenants’ only means of accessing the rental property. If there is another way to enter the rental unit, the landlord may collect a deposit for keys, fobs, or related devices provided that the fee is refunded in full once the device is returned.

When should the security deposit be returned to tenants?

Once a tenancy ends, and the tenant provides their landlord with a forwarding address within one year of the end of tenancy, the landlord will have 15 days to:

• return all deposits to the tenant plus any interest unless you:
  • receive permission in writing from the tenant who agrees to allow you to keep some or all of the deposit; or
  • apply for dispute resolution with the Residential Tenancy Branch asking to keep all or some of the deposit.

If you do not act within the 15 days, tenants can apply for dispute resolution to have the deposit returned. In this case, landlords could be ordered to pay the tenant twice the amount of their deposit.

What if damages exceed the amount of the security deposit?

If damages exceed the security deposit in BC, the tenant is still responsible for the full amount. The landlord can apply to the Residential Tenancy Branch (RTB) for a monetary order to recover the extra cost. This must be done within 2 years. The landlord must still return any unused portion of the deposit or file a dispute within 15 days of receiving the tenant’s forwarding address. Proper documentation (photos, inspection reports, receipts) is essential.                                                                         
Example: If the deposit is $750, and damage costs $1,200:
You can apply to keep the $750 with tenant’s agreement or RTB approval. You must apply to the RTB to recover the additional $450.

Do landlords have to pay interest on a damage deposit?

Yes. B.C.’s tenancy laws require landlords to pay a percentage of interest when returning deposits to their tenants following the conclusion of the tenancy. For 2023, this amount is 1.95%.

This applies to both security/damage deposits, as well as pet deposits. For more information on how and when this amount is to be paid, consult this resource on returning deposits.

When can landlords keep the security deposit?

In the case of damage to the rental property, landlords may withhold part or all of the security deposit. This involves either having the tenant agree in writing that they were responsible for the damage, or applying for dispute resolution, in which landlords will need to provide the proper forms to your tenant.

Landlords will also need to have evidence proving their claim. It’s always wise to complete a thorough Condition Inspection Report from the beginning and end of the tenancy along with photos and other relevant items that may support their claim (i.e. witness statements, repair receipts, etc.)

The landlord’s claim should include evidence such as oral testimony, photos, witness statements, receipts, or other evidence (including a copy of the condition inspection report(s).*  Together, this information should provide some proof that:

1. the landlord suffered a loss;
2. the tenant caused the damage or loss;
3. the value of the items that were damaged or the amount of the landlord’s loss; and
4. you took reasonable steps to minimize your losses (such as protecting your property from further damage when you realized it was happening).

Typically, these hearings are conducted by telephone.  Once an application has been received and paid for, landlords will receive a package in the mail outlining their claim and hearing details and a request for an application fee. They’re advised to follow the instructions closely, pay the fee and then wait to be granted a hearing date (assigned once the application fee is received).

* NOTE:  A landlord may lose the right to claim against the deposit for damage to the rental unit if the landlord does not provide the tenant with at least two opportunities to participate in the condition inspection at the start and end of the tenancy and provide a copy of the completed report to the tenant, as required.  A tenant may lose the right to the return of the deposit if the tenant does not participate in the condition inspection of the rental unit at the start and end of the tenancy.

Increasing Damage Deposits with Rent Increases in BC Can a landlord increase the damage deposit when rent increases?

No, not automatically.                                                                                      
But there’s one exception:
If the rent increases and the original damage deposit was less than half a month’s rent, the landlord can ask to top up the deposit to reach that maximum. When rent goes up in BC, landlords can only ask to increase the damage deposit if it’s less than half a month’s rent. They can ask the tenant to pay the difference to match the new rent’s half-month amount. They must give 30 days’ written notice for this.

What if damages exceed the amount of the security deposit?

The first step is for landlords to ask the tenant to pay for the damages or have them pay for the repairs.  This includes damages beyond reasonable wear and tear and damage they or their guests or pets caused. If the tenant refuses, the process is the same as keeping deposits. You can apply for dispute resolution  (Landlord’s Application for Dispute Resolution) with the Residential Tenancy Branch requesting the tenant pay money for the damage. You should submit evidence with your application in support of the value of the compensation claimed.

Landlords maintain the right to claim compensation even after the tenancy ends, for up to two years after the conclusion of the tenancy. The tenant can make a separate claim even if it falls outside of the two year period just as long as they do so prior to the first claim being heard.

How to avoid deposit disputes

Of course, the best way to avoid issues around returning or withholding deposits is to be an active landlord and avoid damages in the first place. This means:

1. Conduct regular visits to the premise twice a year is typically sufficient though quarterly is acceptable too. This will enable you to nip the problem in the bud and issue evacuation orders if the state of the premises warrants this. During these inspections, you will notice if wear and tear is harder than normal, extra people residing on the premises or signs of pets, for example.
2. Be aware of your responsibilities and your tenant’s in terms of property repairs and maintenance.
3. Ask to conduct an extra inspection on the month before the tenant is set to move out. This will enable you to gauge the state of the situation and file an application to the Residential Tenancy Branch to hold the deposit if you note significant damages.
4. Screen your tenants thoroughly. Thankfully, liv.rent does this for you by verifying all prospective tenants –  asking them to provide the right information, conducting credit & background checks and verifying social media accounts to generate a “Trust Score” and ensure all applicants using the platform are credible and reliable.

FAQ: How to pay & collect a security or damage deposit in BC

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