When renting a property, one of the most common upfront costs is a security deposit. This deposit is typically equivalent to one, two or three months’ rent and must be placed in an interest-bearing account by the landlord. At the end of the lease, if there are no damages to the property, the landlord is required to refund the deposit along with any interest earned. Upon request, the landlord should provide written proof of the interest accrued.
Proper Use of the Deposit:
The deposit can only be used by the landlord for specific purposes, such as:
Covering repairs for damages caused by the tenant during the rental period.
Paying for necessary repairs identified during the property inspection after the tenant vacates (within 21 days).
Covering costs related to a legal eviction.
Addressing rent or utility arrears at the lease’s conclusion.
The deposit cannot be used for general maintenance, penalties for unpaid rent or repairs due to normal wear and tear, such as peeling paint.
Timeline for Deposit Return:
The landlord must return the deposit after the lease ends and a property inspection is conducted within seven days of the tenant’s departure. If the landlord does not conduct an inspection, the property is considered to be in good condition and the deposit must be refunded in full, together with all interest accrued.
Steps to Take if Your Deposit Is Not Refunded:
If your landlord refuses to return your deposit, consider the following actions:
Consult an Attorney: Seek advice from an attorney who specializes in rental law.
Approach the Rental Housing Tribunal (RHT): File a complaint with the RHT to resolve the issue through legal channels.