Residential Tenancies Branch

Section 10

Deposits

Sub-Section 10.6

Overpayment of Deposit(s)

Legislation

s. 29, 31(1), The Residential Tenancies Act
Residential Tenancies Interest 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. The landlord holds the money until the tenant moves out. When a tenancy ends, a landlord may claim a 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 can’t collect more than:

• Half of a month’s rent for a security deposit.
• One month’s rent for a pet damage deposit (effective August 1, 2014. From June 30, 2010 to July 31, 2014, this deposit could be no more than half a month’s rent)
• Half of a month’s tenant services charge for a tenant services security deposit.

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If a landlord collects more than they are legally entitled to, they must return the extra money to the tenant, with interest.

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In some cases, a landlord or tenant may not realize there is an overpayment until the end of the tenancy. If the Branch believes that the landlord may have a valid claim for more than the correct amount of the deposit(s), it may try to help the landlord and tenant reach an agreement on the claim. If mediation isn’t successful, the Branch may Order the landlord to return the overpayment to the tenant. The landlord may still file a claim under Part 11 of the Act.

Procedure

Overview

An officer learns that a tenant paid more than the allowable amount for adeposit. The officer contacts the landlord to discuss the matter. The officer explains how the landlord may return the deposit overpayment to the tenant, depending on whether or not the tenancy is ongoing. If the landlord chooses not to return the extra money, the officer issues an Order instructing the landlord to return it.

Steps ▼

During tenancy

1.The officer asks the tenant for proof of the rent on the unit and the amount of the deposit(s) paid.

2.The officer telephones the landlord to confirm the information. If the landlord confirms the information, the officer tells them the allowable amount they could collect for each deposit. The officer advises the landlord to return the extra money to the tenant, along with the required amount of interest. The landlord can:

• return the extra money plus interest to the tenant; or
• allow the tenant to deduct it from the next month’s rent.

3.If the landlord chooses not to return the money, the officer issues an Order to the landlord to repay the tenant. The officer may also issue an Order allowing the tenant to deduct this amount from a future rental payment.

After tenancy

1.The officer asks the tenant for proof of the rent on the unit and the amount of the deposit paid.

2.The officer telephones the landlord to confirm the information. If the landlord confirms the information, the allowable amount they could collect for each deposit. If the landlord appears to have a valid claim for more than the allowable deposit, the officer may try to mediate an agreement on the claim.

3.If mediation is not successful, the officer issues an Order to the landlord to return the amount of the overpayment to the tenant. The landlord may continue to hold the actual deposit and file a claim for the full amount they believe the tenant owes them.

Forms & Form Letters

X-Referencing

For information on filing a claim for compensation, see Section 9.
For details on Mediation, see Section 1.
For information on interest on security deposits, see Section 12.

Policy Developed

September, 1992

Last Revision

August, 2015

Other Resources

None

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