Section10

Deposits

Sub-Section10.1

Claim by Landlord – Branch has Deposit


Legislation


s. 32, 33, 34,35, 36,The Residential Tenancies Act
s.25(2.3), Residential Tenancies Regulation


Definitions

Security deposit: is money a tenant pays to a landlord before the start of a tenancy. A security deposit can’t be more than half of the first month’s rent. When a tenancy ends, a landlord may claim the security deposit for unpaid rent, damage, extraordinary cleaning costs or other obligation of the tenant. Many people refer to this money as a damage deposit.

Pet damage deposit: is money a tenant pays to a landlord before bringing a pet into a rental unit.  A pet damage deposit collected between June 30, 2010 and July 31, 2014 can’t be more than half of a month’s rent.  A pet damage deposit collected on or after August 1, 2014 can be up to one month’s rent.  Existing tenants who have already paid a pet damage deposit cannot be asked to pay the increased amount. The landlord holds the money until the tenant moves out.  When a tenancy ends, a landlord may claim the pet damage deposit for damage or cleaning costs the landlord suffers because of the tenant’s pet. Landlords cannot charge a pet damage deposit for tenants who rely on a service animal.


Tenant services security deposit: is money a tenant pays to a landlord before entering into a tenancy agreement in a building that provides tenant services.  A tenant services security deposit can only be half of one month’s tenant services charge. The landlord holds the money until the tenant moves out. When a tenancy ends, a landlord may claim a tenant services security deposit for unpaid tenant services charges or other money owed that is related to a tenant service.


Policy

A landlord may choose to have the Branch hold the deposit(s) for their tenants. The Branch charges an annual administration fee for each residential complex. The amount of the fee is set out in the Residential Tenancies Regulation.

<><><><>

When the Branch holds the deposit(s)and the landlord has a claim against the money, they must send the claim to the tenant. The landlord has 28 days, from the end of the tenancy, to send the claim.

A landlord must also send a copy of the claim to the Branch within 28 days of the end of the tenancy. If the landlord misses this deadline, the Branch must return the deposit(s) and interest to the tenant. The landlord can still file a claim under Part 11 of The Residential Tenancies Act.

<><><><>

A landlord and tenant can agree in writing about who should get all or part of the security deposit. If this happens, the landlord should send a copy of the agreement to the Branch within 28 days of the end of the tenancy.



Procedure

Overview

The officer receives a copy of an agreement or a claim, and checks to make sure that the agreement or claim was sent in time. When there is an agreement, it’s confirmed and the money is paid out. If there is a claim, the officer follows the procedures for dealing with claims against security deposits.


Steps ▼

1.If there is an agreement:

  • If the landlord sends a copy of an agreement to the Branch, an officer telephones or writes the tenant to confirm the agreement.

  • Once the agreement is confirmed, the officer pays out the money as the tenant and landlord agreed.

2.If there is a claim:

  • If the landlord sends a copy of a claim to the Branch, an officer checks to make sure that the claim was sent in time.

  • The officer follows the procedures for claims against deposit(s).


Forms & Form Letters


X-Referencing

For more information on how the Branch deals with claims against deposits, see Landlord Claim for More than a Deposit(s) or Landlord Claim for Less than a Deposit(s) in this section.
For details on filing a claim under Part 11, see Claims in Section 9.


Policy Developed

September, 1992


Last Revision

August, 2015


Other Resources

None


Next

Top



Return to the Guidebook Table of Contents

The contents of this page are subject to this standard warning note