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{{REVIEWED LSLAP | date= August 15, 2024}}
{{LSLAP Manual TOC|expanded = landlord}}
{{LSLAP Manual TOC|expanded = landlord}}
Chapter 6 SECURITY DEPOSITS


== A. Duty to Provide and Maintain Rental Unit in Repair ==


=A. General=
The division between the landlord’s and the tenant’s responsibilities in maintaining the rental unit are established in section 32 of the ''RTA''. The specifics of these responsibilities are clarified in much greater detail in RTB’s Policy Guideline 1: Landlord & Tenant – Responsibility for Residential Premises.


A requirement that a tenant pay a security deposit is an express term of the model 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: see Balfour v. Thomson, Vancouver Registry F771652 (BC Co Ct). 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 RTB Policy Guideline 29: Security Deposits.
Because tenancy agreements cannot contradict the terms of the ''RTA'', they cannot purport to make one party responsible for repair allocated by the ''RTA'' to the other (RTB PG 1).


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.
=== 1. Landlord ===


=B. Requirements Under the RTA=
A landlord must provide and maintain residential property in a state of decoration and repair that:
==1. Amount==
*complies with the health, housing and safety standards required by law (''RTA'' s 32(1)(a); and
*having regard to the age, character, and location of the rental unit, makes it suitable for tenant occupation 32(1)(b).  


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)). 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 him or her (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, presumably 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.
As a result, the landlord is responsible for repairing:
*the rental structure and roof;
*heating, plumbing, and electricity;
*locks, walls, floors, and ceilings;
*fire doors and fire escapes;
*insect control, such as bed bug treatment;
*intercoms and elevators; and
*anything else included in a tenant’s rent if so identified in the tenancy agreement.


==2. Inspection Reports==
If a landlord is required to make a repair to comply with the above obligations, the tenant should notify the landlord of the need for repair, preferably in writing. If the landlord refuses to make the repair, the tenant may seek a repair order by making a dispute resolution application at the RTB. If the tenant fails to notify the landlord and substantial damage results from the lack of repair, the tenant may have to pay for the damage; for more information, see RTB PG 5: Duty to Minimize Loss.


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.
When a tenant goes to the RTB to request a repair order, they may also request a rent reduction until the repair is complete; this is based on the reduction in the value of a tenancy agreement as a result (''RTA'', s 65(1)(f)). A tenant can only make deductions from their rent if they are expressly authorized to do so under a provision of the ''RTA'' (''RTA'', s 26(1)).


=C. Return of Security Deposit and Pet Damage Deposit=
=== 2. Tenant ===


When a tenant moves out, he or she must provide his or her 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 after the date at which the tenancy ends, or the date the landlord receives the tenant’s forwarding address, which must be in writing, whichever is later.
Tenants must repair damage to the rental unit or common areas caused by their or their pet’s wilful or negligent acts or omissions, or those of a person permitted by them on the rental property (''RTA'', s 32(3)). The tenant does not have a duty to repair reasonable wear and tear (s 32(4)), which falls on the landlord.


If a landlord does not comply with s 38(1) of the RTA (fails to return deposits within 15 days, and fails to file for dispute resolution) and the tenant still has a valid right to the deposit, the tenant may apply for dispute resolution, the landlord may not make a claim against the security deposit or any pet damage deposit, and must pay the tenant double the amount of the security deposit, pet damage deposit, or both (s 38(6)).
Tenants must maintain “reasonable health, cleanliness and sanitary standards” in their rental unit (''RTA'', s 32(2)), which includes ordinary amounts of day-to-day cleaning. This includes notifying the landlord of any suspected pest infestation. Upon discovery of a pest infestation, the tenant is obligated to cooperate with the landlord in treating the infestation. If tenants do not cooperate within a reasonable time, they could be found liable for the cost of treatment or be evicted. The landlord is obligated to get rid of the infestation unless it can be proven the tenant brought the pests with them when they moved in.  
Leases may not include a term providing that the landlord automatically keeps all or part of the deposit at the end of a tenancy.


Changes have been passed, but not yet brought into force as of the time of writing, allowing landlords to repay security deposits by electronic funds transfer, in addition to the former cheque or personal service methods. For more information on whether the changes have been brought into force, consult the RTB.
If a landlord refuses to have the suite or building treated, the tenant can apply to the RTB for an order compelling the landlord to do so, or get an order from a city inspector. Vancouver Coastal Health no longer does inspections, but is available to answer questions over the phone at 604-675-3800.


==1. Interest on Security Deposit==
== B. No Withholding Rent ==


Interest on a security deposit is calculated from the date the tenant pays the deposit to the day before the security deposit is paid back to the tenant. If the deposit is disputed at dispute resolution, the interest is calculated from the date the tenant paid the deposit up until the date the Arbitrator orders its return (usually the date of the hearing).
A tenant cannot withhold rent because of repairs needed unless an Arbitrator gives an order permitting it, or the repairs qualify as emergency repairs and the tenant has complied with all necessary procedures concerning emergency repairs. A tenant must pay their rent in full and on time, regardless of whether the tenant believes the landlord has fulfilled their obligations, unless they have a right under the ''RTA'' to deduct from their rent (''RTA'', s 26(1)).


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. The current and past rates are:
== C. Emergency Repairs ==


Jan 1/2009 - Dec 31/2015 - 0.00% compounded annually
A tenant is allowed to make certain emergency repairs by themselves without the need for going to the RTB for dispute resolution; the landlord must then reimburse the tenant, or the tenant may deduct their cost from the rent.
Jan 1/2008 - Dec 31/2008 - 1.50% compounded annually
Jan 1/2006 - Dec 31/2007 - 0.50% compounded annually
Jan 1/2002 - Dec 31/2005 - 0.00% compounded annually
Jan 1/2001 - Dec 31/2001 - 3.00% compounded annually
Jan 1/2000 - Dec 31/2000 - 2.00% compounded annually
Jan 1/99 - Dec 31/99 - 2.25% compounded annually
Jan 1/98 - Dec 31/98 - 1.50% compounded annually
Jan 1/97 - Dec 31/97 - 0.25% compounded annually
Jan 1/96 - Dec 31/96 - 3.00% compounded annually
Jan 1/95 - Dec 31/95 - 3.50% compounded annually
Jan 1/94 - Dec 31/94 - 1.00% compounded annually
Jan 1/93 - Dec 31/93 - 2.75% compounded annually
Jan 1/92 - Dec 31/92 - 3.50% compounded annually
Jan 1/91 - Dec 31/91 - 8.25% compounded annually
Jan 1/90 - Dec 31/90 - 9.00% compounded annually
Jan 1/89 - Dec 31/89 - 7.75% compounded annually
Jan 1/88 - Dec 31/88 - 5.25 % compounded annually
Feb 1/87 - Dec 31/87 - 5.25% compounded the last day of that period
July 1/84 - Jan 31/87 - 8.00% per annum
April 1/83 - June 30/84 - 8.00% compounded annually
June 1/80 - March 31/83 - 12.00% compounded annually
Dec 1/74 - May 31/80 - 8.00% compounded annually


NOTE: A tenant has only one year from the time the tenancy ends to supply the landlord with his or her 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.
Tenants must exercise high caution when proceeding with emergency repairs. Improperly deducting from their rent without exact compliance with the provisions of section 33 of the ''RTA'' can result in the tenant being evicted for non-payment of rent.


The RTB website provides a Deposit Interest Calculator which calculates the interest payable on a security deposit during any specific time period:
=== 1. Definition of Emergency Repair ===
www.rto.gov.bc.ca/content/calculator/calculator.aspx.


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.
Emergency repairs must be urgent (''RTA'', s 33(1)(a)). They must be necessary for the health or safety of someone, or for the preservation or use of the residential property (''RTA'', s 33(1)(b)).


NOTE: A pet damage deposit may be used only for damage caused by a pet to the residential property, unless the tenant agrees otherwise.
Furthermore, an emergency repair must only be for the purpose of repairing one or more of the following (''RTA'', s 33(1)(c)):
*major leaks in the pipes or roof;
*damaged or blocked water or sewer pipes or plumbing fixtures;
*the primary heating system;
*damaged or defective locks that give access to a rental unit; or
*the electrical systems.


=D. Extra Deposits and Non-Refundable Fees=
=== 2. Procedure for Conducting an Emergency Repair ===


The RTA allows landlords to charge a deposit for additional access devices (a device so long as it is not a tenant’s only means of entry to one’s building).
A tenant may conduct emergency repairs without going to dispute resolution if all of the following conditions are true:
*emergency repairs are in fact needed (''RTA'', s 33(3)(a));
*the tenant has made at least two attempts to telephone the contact number designated by the landlord for emergency repairs, which may be posted in a conspicuous place on the rental property or communicated to the tenant in writing (''RTA'', s 33(3)(b));
*the tenant has given the landlord reasonable time to make the repairs (''RTA'', s 33(3)(c)).


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)).
The landlord must reimburse the tenant if they claim reimbursement and provide the landlord with a written account of the amounts incurred, accompanied by a receipt for each amount (''RTA'', s 33(5)). However, the following is exempt:
==1. Allowable Non-Refundable Fees==
*repairs made before all of the above three conditions were met (''RTA'', s 33(6)(a));
*amounts for which the tenant has not provided a written account or receipts (''RTA'', s 33(6)(b));
*amounts that are more than a reasonable cost for the repairs (''RTA'', s 33(6)(c)); and
*amounts for emergency repairs caused primarily by the actions or neglect of the tenant or a person permitted on the residential property by the tenant (''RTA'', s 33(6)(d)).


*Direct costs of replacement keys;
If the landlord does not make required reimbursements to the tenant, the tenant may deduct the amount from their rent or otherwise recover the amount (''RTA'', s 33(7)). A tenant must take care that the amounts they deduct from rent truly qualify as amounts for emergency repairs, or else they risk being evicted for non-payment of rent.
*Direct costs of any additional keys that a tenant requests;
 
*Bank service fees for NSF cheques plus a maximum late fee of $25; and
=== 3. Tenants Should Exercise Extreme Caution ===
*Parking fees.
 
Tenants should exercise high caution when proceeding with emergency repairs. If they do not exactly comply with the requirements for undertaking emergency repairs, their rent deduction could be legally construed as a failure to pay rent that justifies the landlord serving them with a 10-day notice to end tenancy for non-payment of rent, or otherwise claim against the tenant. All steps taken should be documented fully.
 
There is sometimes a discrepancy between what a tenant, landlord, and RTB might consider “emergency” repairs. Before a tenant conducts any repairs, they should call the Residential Tenancy Branch, speak to an Information Officer, and make note of the Officer’s name and what the Officer tells them.
 
Emergency repairs usually constitute a large repair bill and should only be undertaken by the tenant in the clearest of circumstances. When in doubt, a tenant should first apply to an Arbitrator for a Repair Order, refer to a Property Use Inspector, or investigate local Standards of Maintenance bylaws.
 
== D. Municipal Bylaws ==
 
Another way to seek repairs can be through their municipality’s Standards of Maintenance bylaws. However, this is only available in some municipalities, such as Vancouver, the City of North Vancouver, and New Westminster.
 
Tenants should check with the municipality to see if there is a Standards of Maintenance bylaw in place. A tenant can call a local municipality and ask for a free inspection if the repair problem relates to structural defects (requiring a building inspector) or fire problem (such as fire inspection for fire exits, smoke alarms). The inspection may result in a formal report and may require the landlord to conduct repairs. The inspection report can also be important evidence to present at an RTB dispute resolution when seeking a Repair Order or an Order for a reduction in rent.
 
There is a risk attached to calling a City Inspector. The inspection could result in the municipality ordering the suite vacated, resulting in eviction for the tenants. For example, the City Inspector may do this if they discover that the rental unit is an illegal suite under their municipality’s bylaws, which is an outcome that the RTB alone cannot undertake.
 
== E. Terminating or Restricting Services or Facilities ==
 
A service or facility, as defined in s 1 of the ''RTA'', applies to any of the following that are provided or agreed to be provided to the tenant by the landlord:
*appliances and furnishings;
*utilities and related services;
*cleaning and maintenance services;
*parking spaces and related facilities;
*cablevision facilities;
*laundry facilities;
*storage facilities;
*elevators;
*common recreational facilities;
*intercom systems;
*garbage facilities and related services;
*heating facilities or services; and
*housekeeping services.
 
A landlord must not terminate or restrict a service or facility if it is essential to the tenant’s use of the rental unit as living accommodation, or providing the service or facility is a material term of the tenancy agreement (''RTA'', s 27(1)). A landlord may terminate or restrict other services or facilities if they do the following:
*give 30 days’ written notice, in the approved form, of the termination or restriction (''RTA'', s 27(2)(a)); and
*reduce the rent in an amount that is equivalent to the reduction in the value of the tenancy agreement resulting from the termination or restriction of the service or facility (''RTA'', s 27(2)(b)).
 
The tenant may dispute the restriction or termination on the basis that the service being restricted or terminated constitutes an essential service or is a material term of the tenancy agreement.
For more information, see RTB PG 22: Termination or Restriction of a Service or Facility.
 
{{LSLAP Manual Navbox|type=chapters15-23}}

Latest revision as of 08:08, 30 August 2024

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 15, 2024.



A. Duty to Provide and Maintain Rental Unit in Repair

The division between the landlord’s and the tenant’s responsibilities in maintaining the rental unit are established in section 32 of the RTA. The specifics of these responsibilities are clarified in much greater detail in RTB’s Policy Guideline 1: Landlord & Tenant – Responsibility for Residential Premises.

Because tenancy agreements cannot contradict the terms of the RTA, they cannot purport to make one party responsible for repair allocated by the RTA to the other (RTB PG 1).

1. Landlord

A landlord must provide and maintain residential property in a state of decoration and repair that:

  • complies with the health, housing and safety standards required by law (RTA s 32(1)(a); and
  • having regard to the age, character, and location of the rental unit, makes it suitable for tenant occupation 32(1)(b).

As a result, the landlord is responsible for repairing:

  • the rental structure and roof;
  • heating, plumbing, and electricity;
  • locks, walls, floors, and ceilings;
  • fire doors and fire escapes;
  • insect control, such as bed bug treatment;
  • intercoms and elevators; and
  • anything else included in a tenant’s rent if so identified in the tenancy agreement.

If a landlord is required to make a repair to comply with the above obligations, the tenant should notify the landlord of the need for repair, preferably in writing. If the landlord refuses to make the repair, the tenant may seek a repair order by making a dispute resolution application at the RTB. If the tenant fails to notify the landlord and substantial damage results from the lack of repair, the tenant may have to pay for the damage; for more information, see RTB PG 5: Duty to Minimize Loss.

When a tenant goes to the RTB to request a repair order, they may also request a rent reduction until the repair is complete; this is based on the reduction in the value of a tenancy agreement as a result (RTA, s 65(1)(f)). A tenant can only make deductions from their rent if they are expressly authorized to do so under a provision of the RTA (RTA, s 26(1)).

2. Tenant

Tenants must repair damage to the rental unit or common areas caused by their or their pet’s wilful or negligent acts or omissions, or those of a person permitted by them on the rental property (RTA, s 32(3)). The tenant does not have a duty to repair reasonable wear and tear (s 32(4)), which falls on the landlord.

Tenants must maintain “reasonable health, cleanliness and sanitary standards” in their rental unit (RTA, s 32(2)), which includes ordinary amounts of day-to-day cleaning. This includes notifying the landlord of any suspected pest infestation. Upon discovery of a pest infestation, the tenant is obligated to cooperate with the landlord in treating the infestation. If tenants do not cooperate within a reasonable time, they could be found liable for the cost of treatment or be evicted. The landlord is obligated to get rid of the infestation unless it can be proven the tenant brought the pests with them when they moved in.

If a landlord refuses to have the suite or building treated, the tenant can apply to the RTB for an order compelling the landlord to do so, or get an order from a city inspector. Vancouver Coastal Health no longer does inspections, but is available to answer questions over the phone at 604-675-3800.

B. No Withholding Rent

A tenant cannot withhold rent because of repairs needed unless an Arbitrator gives an order permitting it, or the repairs qualify as emergency repairs and the tenant has complied with all necessary procedures concerning emergency repairs. A tenant must pay their rent in full and on time, regardless of whether the tenant believes the landlord has fulfilled their obligations, unless they have a right under the RTA to deduct from their rent (RTA, s 26(1)).

C. Emergency Repairs

A tenant is allowed to make certain emergency repairs by themselves without the need for going to the RTB for dispute resolution; the landlord must then reimburse the tenant, or the tenant may deduct their cost from the rent.

Tenants must exercise high caution when proceeding with emergency repairs. Improperly deducting from their rent without exact compliance with the provisions of section 33 of the RTA can result in the tenant being evicted for non-payment of rent.

1. Definition of Emergency Repair

Emergency repairs must be urgent (RTA, s 33(1)(a)). They must be necessary for the health or safety of someone, or for the preservation or use of the residential property (RTA, s 33(1)(b)).

Furthermore, an emergency repair must only be for the purpose of repairing one or more of the following (RTA, s 33(1)(c)):

  • major leaks in the pipes or roof;
  • damaged or blocked water or sewer pipes or plumbing fixtures;
  • the primary heating system;
  • damaged or defective locks that give access to a rental unit; or
  • the electrical systems.

2. Procedure for Conducting an Emergency Repair

A tenant may conduct emergency repairs without going to dispute resolution if all of the following conditions are true:

  • emergency repairs are in fact needed (RTA, s 33(3)(a));
  • the tenant has made at least two attempts to telephone the contact number designated by the landlord for emergency repairs, which may be posted in a conspicuous place on the rental property or communicated to the tenant in writing (RTA, s 33(3)(b));
  • the tenant has given the landlord reasonable time to make the repairs (RTA, s 33(3)(c)).

The landlord must reimburse the tenant if they claim reimbursement and provide the landlord with a written account of the amounts incurred, accompanied by a receipt for each amount (RTA, s 33(5)). However, the following is exempt:

  • repairs made before all of the above three conditions were met (RTA, s 33(6)(a));
  • amounts for which the tenant has not provided a written account or receipts (RTA, s 33(6)(b));
  • amounts that are more than a reasonable cost for the repairs (RTA, s 33(6)(c)); and
  • amounts for emergency repairs caused primarily by the actions or neglect of the tenant or a person permitted on the residential property by the tenant (RTA, s 33(6)(d)).

If the landlord does not make required reimbursements to the tenant, the tenant may deduct the amount from their rent or otherwise recover the amount (RTA, s 33(7)). A tenant must take care that the amounts they deduct from rent truly qualify as amounts for emergency repairs, or else they risk being evicted for non-payment of rent.

3. Tenants Should Exercise Extreme Caution

Tenants should exercise high caution when proceeding with emergency repairs. If they do not exactly comply with the requirements for undertaking emergency repairs, their rent deduction could be legally construed as a failure to pay rent that justifies the landlord serving them with a 10-day notice to end tenancy for non-payment of rent, or otherwise claim against the tenant. All steps taken should be documented fully.

There is sometimes a discrepancy between what a tenant, landlord, and RTB might consider “emergency” repairs. Before a tenant conducts any repairs, they should call the Residential Tenancy Branch, speak to an Information Officer, and make note of the Officer’s name and what the Officer tells them.

Emergency repairs usually constitute a large repair bill and should only be undertaken by the tenant in the clearest of circumstances. When in doubt, a tenant should first apply to an Arbitrator for a Repair Order, refer to a Property Use Inspector, or investigate local Standards of Maintenance bylaws.

D. Municipal Bylaws

Another way to seek repairs can be through their municipality’s Standards of Maintenance bylaws. However, this is only available in some municipalities, such as Vancouver, the City of North Vancouver, and New Westminster.

Tenants should check with the municipality to see if there is a Standards of Maintenance bylaw in place. A tenant can call a local municipality and ask for a free inspection if the repair problem relates to structural defects (requiring a building inspector) or fire problem (such as fire inspection for fire exits, smoke alarms). The inspection may result in a formal report and may require the landlord to conduct repairs. The inspection report can also be important evidence to present at an RTB dispute resolution when seeking a Repair Order or an Order for a reduction in rent.

There is a risk attached to calling a City Inspector. The inspection could result in the municipality ordering the suite vacated, resulting in eviction for the tenants. For example, the City Inspector may do this if they discover that the rental unit is an illegal suite under their municipality’s bylaws, which is an outcome that the RTB alone cannot undertake.

E. Terminating or Restricting Services or Facilities

A service or facility, as defined in s 1 of the RTA, applies to any of the following that are provided or agreed to be provided to the tenant by the landlord:

  • appliances and furnishings;
  • utilities and related services;
  • cleaning and maintenance services;
  • parking spaces and related facilities;
  • cablevision facilities;
  • laundry facilities;
  • storage facilities;
  • elevators;
  • common recreational facilities;
  • intercom systems;
  • garbage facilities and related services;
  • heating facilities or services; and
  • housekeeping services.

A landlord must not terminate or restrict a service or facility if it is essential to the tenant’s use of the rental unit as living accommodation, or providing the service or facility is a material term of the tenancy agreement (RTA, s 27(1)). A landlord may terminate or restrict other services or facilities if they do the following:

  • give 30 days’ written notice, in the approved form, of the termination or restriction (RTA, s 27(2)(a)); and
  • reduce the rent in an amount that is equivalent to the reduction in the value of the tenancy agreement resulting from the termination or restriction of the service or facility (RTA, s 27(2)(b)).

The tenant may dispute the restriction or termination on the basis that the service being restricted or terminated constitutes an essential service or is a material term of the tenancy agreement.

For more information, see RTB PG 22: Termination or Restriction of a Service or Facility.

© Copyright 2024, The Greater Vancouver Law Students' Legal Advice Society.