Security Deposits in Residential Tenancies (19:VI) - Revision history

LSLAP at 19:37, 13 October 2025

2025-10-13T19:37:46Z

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LSLAP at 08:02, 30 August 2024

2024-08-30T08:02:20Z

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Nate Russell: Nate Russell moved page Security Deposits in Residential Tenancies (19:IV) to Security Deposits in Residential Tenancies (19:VI): 2024 edition

2024-08-28T00:02:39Z

Nate Russell moved page Security Deposits in Residential Tenancies (19:IV) to Security Deposits in Residential Tenancies (19:VI): 2024 edition

← Older revision		Revision as of 00:02, 28 August 2024
(No difference)

Clicklaw Editor: /* 1. Allowable Non-Refundable Fees */

2023-08-08T20:13:33Z

1. Allowable Non-Refundable Fees

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LSLAP: /* D. Non-Refundable Fees */

2023-08-03T00:00:55Z

D. Non-Refundable Fees

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	== '''D. Non-Refundable Fees''' ==		== '''D. Non-Refundable Fees''' ==

	The ''RTA'' allows landlords to charge some non-refundable fees to a tenant in accordance with section 7 of the RTA. For example, a landlord may charge for the direct cost of additional building access devices that are requested by the tenant.		The ''RTA'' allows landlords to charge some non-refundable fees to a tenant in accordance with section 7 of the ''RTA''. For example, a landlord may charge for the direct cost of additional building access devices that are requested by the tenant.

	Administration fees for returned cheques ($25) or moving between rental units on a single property can only be charged if the tenancy agreement specifically allows for it (RTR, s 7(1)(d)).		Administration fees for returned cheques ($25) or moving between rental units on a single property can only be charged if the tenancy agreement specifically allows for it (RTR, s 7(1)(d)).

LSLAP at 23:59, 2 August 2023

2023-08-02T23:59:05Z

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	== '''A. General''' ==		== '''A. General''' ==

	A requirement that a tenant pay a security deposit is an express term of the standard agreement. Security deposit is defined in s 1 of the ''RTA'' very broadly. It can include money or property or almost any other item of value to be held by a landlord for the purpose of securing the performance of a tenant’s obligations under the agreement and the ''RTA'' (e.g. the payment of rent ~~and the obligation to leave the rental unit in the same condition they were received~~). A security deposit is a deposit which may cover a variety of costs to the landlord. A security deposit does '''not''' include a post-dated cheque for rent, a pet damage deposit, or a fee prescribed under RTR ss. 6 and 7. See Policy Guideline 29: Security Deposits.		A requirement that a tenant pay a security deposit is an express term of the standard agreement. Security deposit is defined in s 1 of the ''RTA'' very broadly. It can include money or property or almost any other item of value to be held by a landlord for the purpose of securing the performance of a tenant’s obligations under the agreement and the ''RTA'' (e.g. the payment of rent). A security deposit is a deposit which may cover a variety of costs to the landlord. A security deposit does '''not''' include a post-dated cheque for rent, a pet damage deposit, or a fee prescribed under RTR ss. 6 and 7. See Policy Guideline 29: Security Deposits.

	A landlord can only request a security deposit from a tenant as a condition of entering into a tenancy agreement, not after the agreement has been formed. However, pursuant to s 20, if a landlord permits a tenant to keep a pet on the residential property the landlord may require the tenant to pay a pet damage deposit in accordance with s 19 at the time the tenant moves in with a pet, or at the time a tenant acquires a pet.		A landlord can only request a security deposit from a tenant as a condition of entering into a tenancy agreement, not after the agreement has been formed. However, pursuant to s 20, if a landlord permits a tenant to keep a pet on the residential property the landlord may require the tenant to pay a pet damage deposit in accordance with s 19 at the time the tenant moves in with a pet, or at the time a tenant acquires a pet.
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	=== 1. Amount ===		=== 1. Amount ===

	A security deposit demanded or received must not exceed one half of the monthly rent (''RTA'', s 19(2)). Only one security deposit can be required for each rental unit (s 20(b)). A landlord can also ask for an additional ½ month rent as a pet damage deposit (s 19(1)). The tenant may, '''with the landlord’s written permission''', set off all or part of a security deposit against the rent that is due from them (s 21). Any excess security deposit paid (more than ½ of the amount payable as rent at the beginning of the tenancy) to the landlord may be set off by the tenant without the landlord’s permission (s 19(2)). Failure to pay a lawful security deposit is a ground for ending the tenancy (s 47(1)(a)). The landlord may give a one-month end of tenancy notice if the tenant fails to pay the security deposit within 30 days.		A security deposit demanded or received must not exceed one-half of the monthly rent (''RTA'', s 19(1)). Only one security deposit can be required for each rental unit (s 20(b)). A landlord can also ask for an additional ½ month rent as a pet damage deposit (s 19(2)).

	~~=== 2. Inspection Reports ===~~		If a landlord accepts a security deposit or a pet damage deposit that is greater than 1/2 of one month's rent, the tenant may deduct the overpayment from rent or otherwise recover the overpayment. Failure to pay a lawful security deposit is a ground for ending the tenancy (s 47(1)(a)). The landlord may give a one-month eviction notice if the tenant fails to pay the security deposit within 30 days.

	~~The RTA requires landlords and tenants to do move-in (ss 23 and 24) and move-out (ss 35 and 36) condition inspection reports. The rights to the~~ security deposit of a ~~landlord or tenant who does not participate in the condition inspection process may be extinguished. It is extremely important~~ that ~~tenants take part in inspections for their own protection. It~~ is ~~very useful to take dated photographs during both move-out and move-in inspections.~~

	~~If a landlord does not conduct any~~ one ~~of the required condition inspections (either for move-in or move-out), doesn’t fill out a Condition Inspection Report as requested~~, ~~doesn’t give a copy of~~ the ~~filled out report to~~ the ~~tenant,~~ or ~~doesn’t offer~~ the ~~tenant at least two opportunities~~ to ~~attend the inspection on~~ a ~~mutually agreed upon day, then the landlord loses their right to claim against the~~ security deposit ~~or pet damage deposit~~ for ~~damage to~~ the ~~unit~~. ~~They~~ may ~~still claim against the deposit for other kinds of loss, such as unpaid rent.~~

	~~If the landlord abides by all the regulations concerning the condition inspections but~~ the tenant ~~did not participate in~~ the ~~condition inspection on both opportunities, then the tenant loses their right to claim their~~ deposit ~~back~~.

	== '''C. Return of Security Deposit and Pet Damage Deposit''' ==		== '''C. Return of Security Deposit and Pet Damage Deposit''' ==
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	Interest on a security deposit is calculated as follows. For each one-year period beginning on January 1, the rate will be 4.5% below the prime lending rate of the principal banker to the province on January 1st of that year, compounded annually. There is an online deposit interest calculator at http://www.housing.gov.bc.ca/rtb/WebTools/InterestOnDepositCalculator.html		Interest on a security deposit is calculated as follows. For each one-year period beginning on January 1, the rate will be 4.5% below the prime lending rate of the principal banker to the province on January 1st of that year, compounded annually. There is an online deposit interest calculator at http://www.housing.gov.bc.ca/rtb/WebTools/InterestOnDepositCalculator.html

	:'''NOTE:''' ~~Prime~~ interest ~~has been below 4~~.5% ~~since 2008. Therefore, damage deposits paid in or after October 2008 have not accrued any interest (as of June 2022)~~.		:'''NOTE:''' The interest payable on security and pet damage for 2023 is 1.95%.

	:'''NOTE:''' A tenant has only one year from the time the tenancy ends to supply the landlord with their forwarding address. If the tenant fails to forward the address within the one year limit the landlord may retain the security or pet damage deposit or both.		:'''NOTE:''' A tenant has only one year from the time the tenancy ends to supply the landlord with their forwarding address. If the tenant fails to forward the address within the one-year limit the landlord may retain the security or pet damage deposit or both.

	:'''NOTE:''' A landlord does not have to return a deposit within 15 days if the tenant’s right to the return of the deposit (pet or security) has been extinguished for failing to participate in the condition inspection procedures.		:'''NOTE:''' A landlord does not have to return a deposit within 15 days if the tenant’s right to the return of the deposit (pet or security) has been extinguished for failing to participate in the condition inspection procedures.
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	=== 2. Change of Landlord ===		=== 2. Change of Landlord ===

	Where a security or pet deposit is paid to a landlord, and the property is then subsequently sold, the ~~security~~ deposit ~~can constitute a covenant that runs with the land. After the building is sold~~ to the ~~second landlord, the security deposit obligations carry over to that second person~~. ~~So, a tenant who had lived in the building all along would be able to claim the return of their security deposit from a~~ new ~~landlord, even though the tenant had originally paid~~ the security deposit ~~to a different person. See s 93 of~~ the ''RTA'' ~~regarding covenants that run with the land~~.		Where a security or pet deposit is paid to a landlord, and the property is then subsequently sold, the obligations regarding the deposit(s) pass to the new property owner. The new owner is responsible for repaying the initial security and/or pet damage deposit when the tenancy ends (''RTA'', s 93).

	== '''D. ~~Extra Deposits and~~ Non-Refundable Fees''' ==		== '''D. Non-Refundable Fees''' ==

	The ''RTA'' allows landlords to charge some non-refundable fees ~~to a~~ to a tenant in accordance with section 7 of the RTA. For example, a landlord may charge for the direct cost of additional building access devices that are requested by the tenant.		The ''RTA'' allows landlords to charge some non-refundable fees to a tenant in accordance with section 7 of the RTA. For example, a landlord may charge for the direct cost of additional building access devices that are requested by the tenant.

	Administration fees for returned cheques ($25) or moving between rental units on a single property can only be charged if the tenancy agreement specifically allows for it (RTR, s 7(1)(d)).		Administration fees for returned cheques ($25) or moving between rental units on a single property can only be charged if the tenancy agreement specifically allows for it (RTR, s 7(1)(d)).

Clicklaw Editor: /* D. Extra Deposits and Non-Refundable Fees */

2022-11-15T22:20:57Z

D. Extra Deposits and Non-Refundable Fees

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	* Bank service fees for NSF cheques plus a maximum late fee of $25; and		* Bank service fees for NSF cheques plus a maximum late fee of $25; and
	* Parking fees.		* Parking fees.


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Clicklaw Editor: /* 2. Change of Landlord */

2022-11-15T22:20:27Z

2. Change of Landlord

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	=== 2. Change of Landlord ===		=== 2. Change of Landlord ===

	Where a security deposit is paid to a landlord, and the property is then subsequently sold, the security deposit can constitute a covenant that runs with the land. After the building is sold to the second landlord, the security deposit obligations carry over to that second person. So, a tenant who had lived in the building all along would be able to claim the return of their security deposit from a new landlord, even though the tenant had originally paid the security deposit to a different person. See s 93 of the ''RTA'' regarding covenants that run with the land.		Where a security or pet deposit is paid to a landlord, and the property is then subsequently sold, the security deposit can constitute a covenant that runs with the land. After the building is sold to the second landlord, the security deposit obligations carry over to that second person. So, a tenant who had lived in the building all along would be able to claim the return of their security deposit from a new landlord, even though the tenant had originally paid the security deposit to a different person. See s 93 of the ''RTA'' regarding covenants that run with the land.

	== '''D. Extra Deposits and Non-Refundable Fees''' ==		== '''D. Extra Deposits and Non-Refundable Fees''' ==

Clicklaw Editor: /* C. Return of Security Deposit and Pet Damage Deposit */

2022-11-15T22:18:54Z

C. Return of Security Deposit and Pet Damage Deposit

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	If the landlord abides by all the regulations concerning the condition inspections but the tenant did not participate in the condition inspection on both opportunities, then the tenant loses their right to claim their deposit back.		If the landlord abides by all the regulations concerning the condition inspections but the tenant did not participate in the condition inspection on both opportunities, then the tenant loses their right to claim their deposit back.

	== '''C. Return of Security Deposit and Pet Damage Deposit''' ==		== '''C. Return of Security Deposit and Pet Damage Deposit''' ==

	When a tenant moves out, they must provide their landlords with a forwarding address in writing. The security deposit must be returned to the tenant, '''with interest''', or the landlord must file for dispute resolution to retain the deposit, within 15 days of the later of the following two: the date at which the tenancy ends, or the date the landlord receives the tenant’s forwarding address, which '''must be in writing.'''		When a tenant moves out, they must provide their landlords with a forwarding address in writing. The security deposit must be returned to the tenant, '''with interest''', or the landlord must file for dispute resolution to retain the deposit, within 15 days of the later of the following two: the date at which the tenancy ends, or the date the landlord receives the tenant’s forwarding address, which '''must be in writing.'''
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	Interest on a security deposit is calculated as follows. For each one-year period beginning on January 1, the rate will be 4.5% below the prime lending rate of the principal banker to the province on January 1st of that year, compounded annually. There is an online deposit interest calculator at http://www.housing.gov.bc.ca/rtb/WebTools/InterestOnDepositCalculator.html		Interest on a security deposit is calculated as follows. For each one-year period beginning on January 1, the rate will be 4.5% below the prime lending rate of the principal banker to the province on January 1st of that year, compounded annually. There is an online deposit interest calculator at http://www.housing.gov.bc.ca/rtb/WebTools/InterestOnDepositCalculator.html

	:'''NOTE:''' Prime interest has been below 4.5% since 2008. Therefore, damage deposits paid in or after October 2008 have not accrued any interest (as of June 2022).		:'''NOTE:''' Prime interest has been below 4.5% since 2008. Therefore, damage deposits paid in or after October 2008 have not accrued any interest (as of June 2022).

	:'''NOTE:''' A tenant has only one year from the time the tenancy ends to supply the landlord with their forwarding address. If the tenant fails to forward the address within the one year limit the landlord may retain the security or pet damage deposit or both.		:'''NOTE:''' A tenant has only one year from the time the tenancy ends to supply the landlord with their forwarding address. If the tenant fails to forward the address within the one year limit the landlord may retain the security or pet damage deposit or both.

	:'''NOTE:''' A landlord does not have to return a deposit within 15 days if the tenant’s right to the return of the deposit (pet or security) has been extinguished for failing to participate in the condition inspection procedures.		:'''NOTE:''' A landlord does not have to return a deposit within 15 days if the tenant’s right to the return of the deposit (pet or security) has been extinguished for failing to participate in the condition inspection procedures.

	:'''NOTE:''' A pet damage deposit may be used only for damage caused by a pet to the residential property unless the tenant agrees otherwise.		:'''NOTE:''' A pet damage deposit may be used only for damage caused by a pet to the residential property unless the tenant agrees otherwise.

	=== 2. Change of Landlord ===		=== 2. Change of Landlord ===

Clicklaw Editor: /* B. Requirements Under the RTA */

2022-11-15T22:18:27Z

B. Requirements Under the RTA

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	A landlord can only request a security deposit from a tenant as a condition of entering into a tenancy agreement, not after the agreement has been formed. However, pursuant to s 20, if a landlord permits a tenant to keep a pet on the residential property the landlord may require the tenant to pay a pet damage deposit in accordance with s 19 at the time the tenant moves in with a pet, or at the time a tenant acquires a pet.		A landlord can only request a security deposit from a tenant as a condition of entering into a tenancy agreement, not after the agreement has been formed. However, pursuant to s 20, if a landlord permits a tenant to keep a pet on the residential property the landlord may require the tenant to pay a pet damage deposit in accordance with s 19 at the time the tenant moves in with a pet, or at the time a tenant acquires a pet.

	== '''B. Requirements Under the ''RTA''''' ==		== '''B. Requirements Under the ''RTA''''' ==

	=== 1. Amount ===		=== 1. Amount ===

	A security deposit demanded or received must not exceed one half of the monthly rent (''RTA'', s 19(2)). Only one security deposit can be required for each rental unit (s 20(b)). A landlord can also ask for an additional ½ month rent as a pet damage deposit (s 19(1)). The tenant may, '''with the landlord’s written permission''', set off all or part of a security deposit against the rent that is due from them (s 21). Any excess security deposit paid (more than ½ of the amount payable as rent at the beginning of the tenancy) to the landlord may be set off by the tenant without the landlord’s permission (s 19(2)). Failure to pay a lawful security deposit is a ground for ending the tenancy (s 47(1)(a)). The landlord may give a one-month end of tenancy notice if the tenant fails to pay the security deposit within 30 days.		A security deposit demanded or received must not exceed one half of the monthly rent (''RTA'', s 19(2)). Only one security deposit can be required for each rental unit (s 20(b)). A landlord can also ask for an additional ½ month rent as a pet damage deposit (s 19(1)). The tenant may, '''with the landlord’s written permission''', set off all or part of a security deposit against the rent that is due from them (s 21). Any excess security deposit paid (more than ½ of the amount payable as rent at the beginning of the tenancy) to the landlord may be set off by the tenant without the landlord’s permission (s 19(2)). Failure to pay a lawful security deposit is a ground for ending the tenancy (s 47(1)(a)). The landlord may give a one-month end of tenancy notice if the tenant fails to pay the security deposit within 30 days.

	=== 2. Inspection Reports ===		=== 2. Inspection Reports ===

	The RTA requires landlords and tenants to do move-in (ss 23 and 24) and move-out (ss 35 and 36) condition inspection reports. The rights to the security deposit of a landlord or tenant who does not participate in the condition inspection process may be extinguished. It is extremely important that tenants take part in inspections for their own protection. It is very useful to take dated photographs during both move-out and move-in inspections.		The RTA requires landlords and tenants to do move-in (ss 23 and 24) and move-out (ss 35 and 36) condition inspection reports. The rights to the security deposit of a landlord or tenant who does not participate in the condition inspection process may be extinguished. It is extremely important that tenants take part in inspections for their own protection. It is very useful to take dated photographs during both move-out and move-in inspections.