Security Deposit, What are they used for?

When a tenancy starts in BC the landlord is permitted to collect a security deposit and a pet deposit if there are pets in the rental unit. In BC the maximum allowable limit for the security and pet deposits is 50% of the first month’s rent. For example if the rent is $2000 the security deposit and pet deposit could be $1000 each.

When moving out tenants sometimes misunderstand what the deposits are used for.

We often have requests from people when vacating a property requesting we use the deposit funds as part of the last month of rent. This is not what either of these two deposits are designed for.

A security deposit is to be used for damage and other costs to the unit when the tenant vacates the property. We often experience people who fail to clean the unit to a satisfactory level. They often miss behind the fridges and under stoves for example. In strata corporations there are move out fees applied which tenants sometimes fail to pay.

The pet deposit is a different item which is to be used for specific damage to the unit caused by the animal. The animal would not fail to clean behind the fridge, or book the move out. It would scratch and damage the floors, baseboards, carpets and other items of this nature.

The other main factor tenants misunderstand is that the deposits are not to be returned until the forwading address has been provided to the landlord. A tenant is required to meet and complete the move out inspection report with the landlord or their agent to determine if part of the deposits should be withheld. On the move out form is a section to provide the frowarding address. Some tenants at this time refuse to provide a forwarding address believing that the requirement of the landlord returning the deposit within 15 days allows them to claim twice the amount of the deposit. The time of the 15 days starts when the tenant provides the forwarding address.

The move out form also has a section where a tenant can sign the form and provide the forwarding address but disagree with the proposed withholding of the funds. If this section is indicated then the landlord must file a claim with the RTB for dispute resolution within the 15 day time frame. Failing to file in the 15 days could result in the landlord owing the tenant twice the deposit amounts.

What if the tenant fails to attend the move out inspection, sign the form or provide a forwarding address. A tenant has two years to provide the forwarding address. What this means is that as a property management company we must hold these funds in trust for two years before dispersing them to the owner. If self managed the tenant can provide the address in that two years and then at that time the 15 day period begins. If the landlord has not held the funds they would need to distribute them to the tenant in 15 days.

A landlord should perform the move out inspection even when the tenant fails to attend the meeting and complete the form as if they were in attendance.

Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com

When a tenancy starts in BC the landlord is permitted to collect a security deposit and a pet deposit if there are pets in the rental unit. In BC the maximum allowable limit for the security and pet deposits is 50% of the first month’s rent. For example if the rent is $2000 the security deposit and pet deposit could be $1000 each. 

When moving out tenants sometimes misunderstand what the deposits are used for.  We often have requests from people when vacating a property requesting we use the deposit funds as part of the last month of rent. This is not what either of these two deposits are designed for. 

A security deposit is to be used for damage and other costs to the unit when the tenant vacates the property. We often experience people who fail to clean the unit to a satisfactory level. They often miss behind the fridges and under stoves for example. In strata corporations there are move out fees applied which tenants sometimes fail to pay.  

The pet deposit is a different item which is to be used for specific damage to the unit caused by the animal. The animal would not fail to clean behind the fridge, or book the move out. It would scratch and damage the floors, baseboards, carpets and other items of this nature. 

The other main factor tenants misunderstand is that the deposits are not to be returned until the forwarding address has been provided to the landlord. A tenant is required to meet and complete the move out inspection report with the landlord or their agent to determine if part of the deposits should be withheld. On the move out form is a section to provide the frowarding address. Some tenants at this time refuse to provide a forwarding address believing that the requirement of the landlord returning the deposit within 15 days allows them to claim twice the amount of the deposit. The time of the 15 days starts when the tenant provides the forwarding address.                             

The move out form also has a section where a tenant can sign the form and provide the forwarding address but disagree with the proposed withholding of the funds. If this section is indicated then the landlord must file a claim with the RTB for dispute resolution within the 15 day time frame. Failing to file in the 15 days could result in the landlord owing the tenant twice the deposit amounts.   

What if the tenant fails to attend the move out inspection, sign the form or provide a forwarding address. A tenant has two years to provide the forwarding address. What this means is that as a property management company we must hold these funds in trust for two years before dispersing them to the owner. If self managed the tenant can provide the address in that two years and then at that time the 15 day period begins. If the landlord has not held the funds they would need to distribute them to the tenant in 15 days. 

A landlord should perform the move out inspection even when the tenant fails to attend the meeting and complete the form as if they were in attendance.    

Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com