Deposits for Rental Agreements
Category Property Thought Of The Week
The Rental Housing Act regulates the relationship between landlords and tenants, sets out certain rules that each must comply with and provides for procedures to be followed in the event of a dispute arising.
One such provision relates to deposits. The Act permits a landlord to request a tenant to pay a deposit before taking occupation of the property. The landlord is then obliged to invest this deposit in an interest-bearing account with a financial institution. On the expiration of the lease, the landlord may apply the deposit and interest towards the payment of all amounts for which the tenant is liable under the lease, including the reasonable cost of repairing damage to the dwelling during the lease period. The balance of the deposit and interest, if any, must then be refunded to the tenant by the landlord not later than 14 days of restoration of the dwelling to the landlord.
A tenant has the right to request the landlord to provide a written receipt reflecting all payments made, as well as written proof of interest earned on the deposit.
For more information or assistance with rental agreements, contact STBB.