A Three Part Series on Deposits

Part One: Security Deposits
Welcome to the first in a three part series on deposits in residential rentals in BC.

Contrary to popular opinion, you cannot take a “damage deposit” in BC. This is because the Residential Tenancy Act allows you to take a security deposit of a maximum of half a months rent instead.

But what’s the difference?
The answer is: everything! A “damage deposit” is a deposit (in other provinces) that applies only to damage done to the unit. With a security deposit, you are able to claim any amount owing by the tenant whether it be damage, rent, fees (like the $25 administration fee for late rent in the ROMS BC Residential Tenancy Agreement), cleaning, liquidated damages – you name it!

When do you take a security deposit?

Generally this is done before the tenancy begins, but remember that the tenant does have 30 days to pay it from the date it is requested. Most tenants will pay the security deposit before they move in. But if you have a tenant who refuses to do so, this could potentially be a red flag about what could happen with other payments during the tenancy.

Remember that every situation is different and the ROMS BC staff are here to help you work through any situation.

Check back here next Friday for part two of the series: Pet Damage Deposits.

-- Hunter Boucher and Carly Ludwar