THE KEY
Correctly Handling Deposits By Hunter Boucher, Director of Operations, LandlordBC Improperly handling security deposits can present a significant liability for landlords. With the penalty for even a simple mistake being double the deposit, it is vital to have firm understanding of the processes that surround returning, retaining, and documenting deposits. In this article we will cover a few of the most common issues landlords face when dealing with deposits. Most issues for landlords concerning deposits happen at the end of the tenancy after the condition inspection has been completed. Determining when and how to make deductions from a deposit can be a confusing endeavour. As the landlord, you have 15 days from the end of the tenancy or the date you received the forwarding address to deal with the deposit. The first point of confusion lies in determining when you start counting down the 15 days. If at the end of the tenancy, the tenant has provided their forwarding address you must act within 15 days. If, however, the tenant has not provided their forwarding address you do not start counting down the 15 days. The tenant has one year to provide their forwarding address, if they fail to do so they have waived their right to their deposit. Your first option is to return the deposit in full; this does not mean it has to be in the tenant’s hands within 15 days — just that you have
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18 | SPRING 2020
sent the deposit. We do not recommend returning the deposit in cash, instead use a method that allows you to prove you have in fact returned it such as cheque or email money transfer. If you choose to return the deposit using email money transfer, the tenant is still obligated to provide a forwarding address. The next two options are used when you need to retain all or part of a deposit. Ideally you will calculate the required deductions and come to an agreement on the amount with your tenant. If an agreement can be reached it must be in writing with the tenant’s signature. Both the LandlordBC’s Condition Inspection form and the standard Residential Tenancy Branch form have a section titled Deposit Statement. In this section you record the deposits, interest, and deductions. This is also the form that the tenant can sign in agreement to any deductions. Alternatively, a letter that outlines the deductions and is signed by both landlord and tenant would suffice. If there is deposit left over you must return the remainder within the 15 days. Your last option for making deductions from a deposit is to apply at the Residential Tenancy Branch to retain all or part of either deposit. This is done through the Residential Tenancy Branches Dispute Resolutions process. While the application needs to be made within the 15 days, the hearing itself will be held several months from the application date. There is occasionally confusion as to how to deal with the deposit while you are waiting for your hearing. If you applied within the 15 days, you simply retain the deposit until the hearing has occurred and an arbitrator has issued a decision. If your tenant owes you more than the deposit will cover, you can include this in your application as a monetary order.
Cannabis Refresher In May of 2018 Bill 30 was presented in the B.C. Legislature. A small section of this bill provided landlords and tenants a clear understanding of their rights and responsibilities regarding the growing and consumption of recreational cannabis. This change is retroactive to all tenancies entered into before the “Cannabis Control Date” (October 17th 2018), which is the date this
