Residential Tenancies Branch

Section 12

Costs and Interest

Sub-Section 12.2

Interest

Legislation

s. 31.1, 154(1)5(c), The Residential Tenancies Act
Residential Tenancies Interest Regulation
The Court of King’s Bench Act, Part XIV

Definitions

Claimant: a person who makes a claim against another.

Costs: expenses that a claimant may have to file or serve a claim or application or provide supporting evidence for a claim or application.

Interest: for the purpose of this subsection, interest can be:

• interest that a landlord is required to pay on a security deposit. A tenant is entitled to interest from the date they pay a deposit until the date the landlord returns the money or the Branch issues an Order on the deposit. The government sets the interest rate.

• interest at the Court of King’s Bench rate that a landlord or tenant can claim on an award of compensation.
  
  

Policy

Interest on Compensation

Claimants can ask for interest on compensation the Branch awards.

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The Branch doesn’t automatically include interest on every compensation award. When a claimant files a claim or an Application for an Order of Possession, they must ask for interest in the details of claim section of the form.

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To calculate interest, the Branch uses the pre-judgment rate set out by The Court of King’s Bench Act. The rate is set quarterly.

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Although a claimant and respondent may sign an agreement to pay interest at a rate other than the pre or post-judgment rate, the Branch can only award interest at the Court of King’s Bench rates.

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The Branch decides the date from which a respondent is responsible to pay interest. Interest can be calculated from:

• the date that the respondent didn’t meet their responsibilities under the Act or a tenancy agreement;
• the date that a claimant had a financial loss or paid an expense;
• the date the tenancy ended; or
• the date the claim for compensation was filed with the Branch.

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Interest is calculated on the amount of the compensation only. Compensation includes returned cheque charges, but doesn’t include:

• costs;
• late payment fees; or
• interest awarded at the pre-judgment rate.

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On a claim for rent, the Branch generally awards interest at the pre-judgment rate from the date the rent was due. For example: A landlord files a claim for rent for April and May. The monthly rent is $505.00. The Branch issues the decision on June 15. The pre-judgment rate is 5.5% per year for the period from April 1 to June 30. For April 1 –April 30, the interest is $2.28 ($505.00 x 30 days ¸ 365 days x 5.5%). For the period May 1 – June 15, the interest is $7.00 ($1010.00 x 46 days ¸ 365 days x 5.5%). The total interest is $9.28.

On a claim for cleaning, damage or other compensation, the Branch generally awards interest at the pre-judgment rate from the date the tenancy ended to the date of the Order. For example: A landlord files a claim for cleaning and damage. The tenancy ended April 30. On June 15, the Branch awards the landlord $700.00. The pre-judgment rate is 5.5% per year for the period of April 1 – June 30. The interest is $4.85 ($700.00 x 46 days ¸ 365 days x 5.5%).

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In some cases, a claimant may not file a claim for several months or years after the end of a tenancy. If the claimant doesn’t have a reasonable explanation for the delay in filing the claim, the Branch will only award interest from the date the claimant filed the claim.

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A claimant can file a certified copy of a Branch Order in the Court of King’s Bench to enforce the Order. When a claimant files an Order, interest on the compensation is calculated at the post-judgment rate from the date of the Branch’s decision or Order to the date the compensation is paid.

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Interest on A Security Deposit

When the Branch issues an Order of Possession, a landlord may ask the Branch to apply the security deposit to the Order for compensation. When this happens, the Branch calculates the interest on the deposit from the date the landlord received the deposit up to the date the tenant is to move.

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When making any other decision on a security deposit, the Branch calculates the interest on the deposit up to the date of the Order.

Procedure

Overview

A claimant can ask for interest when filing a claim for compensation or applying for an Order of Possession. The officer uses set rates when calculating interest.

Steps ▼

1.If a claimant claims interest when they file a claim for compensation or apply for an Order of Possession, the officer:

• determines the amount of compensation owing;
• decides the date from which the respondent is responsible to pay interest;
• calculates the interest at the pre-judgment rate; and
• awards interest at the post-judgment rate.

  
  

Forms & Form Letters

X-Referencing

None

Policy Developed

September, 1992

Last Revision

February, 2024

Other Resources

None

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