Damage deposit rules in BC
Security deposits are a routine part of renting in British Columbia, but strict rules govern how much landlords can collect, when deposits must be returned, and what deductions are allowed.This guide covers B.C. tenancy law only. For other provinces, see our [rental laws guides].
In British Columbia, the terms "security deposit" and "damage deposit" are used interchangeably. Both refer to the same thing: a refundable amount collected by a landlord at the start of a tenancy, held as security against damage or unpaid obligations, and returned at the end. The rules governing how deposits are collected, held, and returned are set out in the Residential Tenancy Act (RTA) and enforced by the Residential Tenancy Branch (RTB).
How Much Can a Landlord Collect?
The maximum security deposit in BC is half one month's rent. If the tenant has a pet, a separate pet damage deposit of up to half one month's rent may also be collected. The combined maximum for both deposits is one full month's rent, according to the BC government.
No other upfront fees are permitted. Landlords cannot collect first and last month's rent, non-refundable cleaning fees, or any amount above the limits above.
When Must the Deposit Be Paid?
Tenants must pay the security deposit within 30 days of entering into the tenancy agreement. If the tenant fails to pay within this window, the landlord may serve a notice to end tenancy.
Can a Landlord Increase the Deposit Later?
Not automatically. If rent increases and the original deposit was collected at less than the half-month maximum, a landlord may ask the tenant to top up the deposit to reflect the new rent's half-month amount. This requires 30 days' written notice.
What Happens at Move-In and Move-Out?
Landlords and tenants must complete a condition inspection report at both the start and end of the tenancy, using the prescribed RTB form (RTB-27). The landlord must give the tenant a copy within seven days of the move-in inspection and within 15 days of the move-out inspection.
Failing to complete these inspections has consequences for both parties. If a landlord does not give the tenant proper opportunity to participate in the inspections, the landlord may lose the right to claim against the deposit. If a tenant refuses to participate, they may lose the right to have the deposit returned.
When Must the Deposit Be Returned?
Once the tenancy ends, the landlord has 15 days from whichever comes later: the end of the tenancy, or the date the tenant provides a written forwarding address (within one year of the tenancy ending). Within that 15-day window, the landlord must either return the full deposit plus any interest owing, get the tenant's written agreement to any deductions, or apply to the RTB for dispute resolution to keep all or part of the deposit.
If the landlord does neither within 15 days, the tenant can apply to the RTB for the deposit's return, and the landlord may be ordered to pay double the deposit amount.
Interest on Deposits
BC landlords are required to pay interest on deposits when returning them. The rate is set annually by the provincial government. For 2026, the rate is 0%, according to the BC government. Interest must still be calculated for any prior years the deposit was held when the rate was above zero: 0.95% in 2025, 2.7% in 2024, and 1.95% in 2023. The RTB provides a deposit interest calculator to assist with this.
When Can a Landlord Keep the Deposit?
A landlord can only keep all or part of a deposit if the tenant agrees in writing, or the RTB issues a dispute resolution order permitting it. Deductions can only cover damage beyond reasonable wear and tear, not ordinary deterioration from normal use. If damages exceed the deposit amount, the landlord can apply to the RTB for a monetary order to recover the additional cost, within two years of the tenancy ending.
How to Resolve a Deposit Dispute
If a deposit is not returned on time or a deduction is disputed, either party can apply to the RTB through the dispute resolution process. Strong documentation, including condition inspection reports, photos, receipts, and written communications, gives any application the best chance of a clear outcome.
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