Security Deposit

How much can a landlord collect as a security deposit?

The security deposit cannot be any more than one half of one month's rent.

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Do you have to pay a security deposit?

Most landlords request it to be paid in order to rent the premise.

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What does the landlord do with the tenant's security deposit?

The landlord must place the money in a trust account for the tenant.

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Is there interest credited to the security deposit?

Yes. The interest rates are set by the regulations to the Act.

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What should a tenant do before moving into the unit?

The tenant should inspect the premises and write down all the conditions of the premises before the tenancy begins. The inspection can be done with or without the landlord. The tenant signs and dates the inspection. It is a good idea if the tenant gets the landlord to sign it as well. If the landlord can't or won't sign, the tenant should send a copy of it to the landlord. A copy is kept by the tenant. Another inspection should be carried out at the end of the tenancy. It is also a good idea to take pictures.

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What should a landlord do before the tenant moves into the unit?

The landlord should inspect the premises and write down all the conditions of the premises before the tenancy begins. The inspection can be done with or without the tenant. The landlord signs and dates the inspection. It is a good idea if the landlord gets the tenant to sign it as well and gives him or her a copy. If the tenant can't or won't sign it is a good idea to send the tenant a copy. The landlord keeps a copy. Another inspection should be carried out at the end of the tenancy. It is also a good idea to take pictures.

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Can a landlord demand extra deposits for keys, carpets, fire extinguishers, pets, holding deposits, etc.?

No, any money collected by the landlord other than the rent is a security deposit.

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What happens to a security deposit when the property is sold?

The deposit becomes the responsibility of the new owner.

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Can a tenant deduct the security deposit from the last or any month's rent?

No, the tenant cannot deduct the amount of the security deposit from the rent payment.

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Is the tenant responsible for repairing normal wear and tear in the premises?

No. Tenants are not responsible for the normal decline/deterioration of the premises during the tenancy.

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When should the security deposit and interest be returned to the tenant?

Within 10 days after the end of the tenancy which is ten days from the end of the notice period given to the tenant or the landlord. The time does not necessarily start from the time you move out. (A notice to quit was given for the 30th day of June, the tenant leaves on the 15th of June, the time for the return of the deposit starts after the 30th of June not from the time the tenant moves) Tenants should give the landlord an address where the security deposit is to be sent.

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Can the landlord keep the security deposit at the end of the tenancy if the tenant owes unpaid rent for the premises and/or damages?

Yes, the security deposit can be used against rent owing or damages.

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What does the landlord do if the security deposit is going to be kept for damages and/or unpaid rent?

When the tenant does not give the landlord written consent to keep the money, the landlord is to file notification with the Residential Tenancies Division within ten days from the end of the tenancy that the security deposit is going to be kept. The landlord is responsible to send a copy to the tenant.

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What can a tenant do if the deposit is not returned after the ten days?

The tenant is to contact the landlord and request a refund. If the landlord and tenant cannot work it out themselves, the tenant may contact the Residential Tenancies program for information or file an Application to the Director ($28.59 filing fee) seeking the refund.

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