Difference between revisions of "Security Deposits in Residential Tenancies (19:IV)"

Jump to navigation Jump to search
Line 7: Line 7:




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: 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 '''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 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'''.




Line 19: Line 19:




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 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 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.




Line 36: Line 36:




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 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.'''


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. After this, 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)).
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. After this, 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)).
Line 43: Line 43:




According to ''RTA'' s 38(8), the landlord can repay security deposits by cheque, personal service  
According to ''RTA'' s 38(8), the landlord can repay security deposits by cheque, personal service methods, or electronic fund transfers.




Line 53: Line 53:
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: 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.
:'''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 ===
Line 63: Line 63:
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 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''' ==
 
 
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).


The ''RTA'' allows landlords to charge a deposit for additional access devices (so long as it is not a tenant’s only means of entry to one’s building).


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)).


=== 1. Allowable Non-Refundable Fees ===
=== 1. Allowable Non-Refundable Fees ===


 
* Direct costs of replacement keys;
* Direct costs of replacement keys;
* Direct costs of any additional keys that a tenant request;
 
* Bank service fees for NSF cheques plus a maximum late fee of $25; and
* Parking fees.
* Direct costs of any additional keys that a tenant request;
 
* Bank service fees for NSF cheques plus a maximum late fee of $25; and
 
* Parking fees.
 
 




{{LSLAP Manual Navbox|type=chapters15-22}}
{{LSLAP Manual Navbox|type=chapters15-22}}
Retrieved from "https://wiki.clicklaw.bc.ca/index.php?title=Security_Deposits_in_Residential_Tenancies_(19:IV)"