Q. I know I can collect a half month’s damage deposit that goes toward any damage caused to the suite. Renters lose keys, so can I collect a $50 key deposit? Also, I want a deposit in case any cheques bounce. How much do you recommend I collect?
A. Whoa! Let’s go back to basics. First, the Residential Tenancy Act uses the term "security deposit" not "damage deposit" – and for good reason. A security deposit is defined as the renter’s money on deposit with the landlord against any obligation the renter may have at the end of the tenancy. That includes lost keys, late rent fees, NSF charges, or anything else that costs money and is the renter’s responsibility.
And when you request a security deposit, you cannot collect more than one half month’s rent. Having said that, if you allow pets, you can require an additional half month’s rent as a pet damage deposit. This is intended to protect you against any damage specifically caused by the pet(s).
-- LandlordMentor
