Tenancy deposits and fees

Landlords can charge up to half of one month’s rent as a security deposit at the beginning of the tenancy. They can’t keep the deposit unless they get permission from the Residential Tenancy Branch (RTB).

On this page

• Security deposits
• Pet damage deposits
• Overpaying a deposit   
• Condition inspections are essential for deposit rights
• Returning security and pet damage deposits​
• Fees during tenancy
• Tenant role, rights and responsibilities
• Landlord role, rights and responsibilities
• Resources
• I need help

Security deposits

A security deposit, also known as a damage deposit, is money collected by the landlord at the beginning of the tenancy and held until the end. The deposit amount can be no more than half of the first month's rent. 

• Note: The deposit amount is determined by the rent at the time of the initial tenancy agreement. Even if the rent changes later on in the tenancy, the original deposit amount remains the same

A tenancy starts once the tenant pays the deposit 

Once the tenant has paid the deposit, the tenancy is considered to be established. The landlord can't decide to rent the unit to someone else. 

If a tenant pays a security deposit but decides not to move in, the landlord can seek dispute resolution to use the deposit for unpaid rent. Dispute resolution is a process to help resolve conflicts between landlords and tenants.

Security deposits protect landlords from damages

The security deposit covers unpaid rent and protects the landlord from any damages to the rental unit caused by the tenant. If a landlord believes a tenant is responsible for damages beyond normal wear and tear, they can apply to the Residential Tenancy Branch (RTB) to keep the security deposit. 

Pet damage deposits 

If tenants are able to have pets, the landlord can charge a pet damage deposit in addition to the regular security deposit. The deposit amount can be no more than half of the first month’s rent, regardless of the number of pets allowed.

Tenants have to pay a pet deposit at the start of a tenancy or when they get a pet during the tenancy. Landlords can't charge a fee for pets beyond a pet damage deposit, such as a monthly pet fee.

• Learn more about having pets during a tenancy

Guide and service dogs don't need a deposit 

Guide and service dogs are not considered pets and are allowed to live in rental units. Landlords can't charge for a pet damage deposit for tenants with certified guide or service dogs.  

Unrepaired pet damages 

If the tenant doesn't fix any pet-related damages to the unit before moving out, the landlord can seek dispute resolution to keep all, or part of, the pet damage deposit. 

Returning pet deposits 

The landlord must return a pet damage deposit at the end of the tenancy if there are no pet-related damages in the unit.

Overpaying a deposit

The maximum amount a landlord can charge for a security deposit or pet damage deposit is half the monthly rent. If a landlord requires both deposits, they can ask for a full month's rent. 

Sometimes, tenants may overpay a deposit amount. If this happens, tenants have two options. 

Withholding the overpayment from the next month's rent  

If a tenant has overpaid a deposit, they can withhold that amount from the next month's rent. Tenants must communicate with their landlord in writing if they are reducing their rent payment due to overpayment. 

Recovering the overpayment through dispute resolution 

If the tenant is uncomfortable withholding the overpayment from the next month's rent, they can seek dispute resolution to recover the overpaid amount.

Condition inspections are essential for deposit rights  

Landlords and tenants must inspect the condition of the rental unit together at the end of the tenancy and complete a Condition Inspection Report (PDF, 1.3MB) - Form RTB-27

Comparing the move-in and move-out reports helps to identify damage to the rental unit and who is responsible for paying for repairs. If landlords and tenants do not properly complete a move-out inspection, they may lose their right to the deposit. 

Maintaining deposit claim rights as a landlord

To maintain the right to make a claim on the deposit, the landlord must: 

• Offer the tenant at least 2 opportunities to inspect the unit 
• Complete the Condition Inspection Report (PDF, 1.3MB) - Form RTB-27
• Sign the Condition Inspection Report and provide a copy to the tenant

Maintaining deposit claim rights as a tenant 

The tenant must participate in an inspection and complete and sign the Condition Inspection Report to maintain the right to the deposit. 

• Learn more about the process for move-out inspections

Returning security and pet damage deposits

Tenant provides forwarding address 

When a tenancy ends, the tenant must give the landlord their forwarding address in writing where the deposit can be sent. 

This usually happens just before or right after the tenant moves out, but the tenant can provide their forwarding address within one year of when the tenancy ends. 

Deposit return process 

Once the landlord has received the tenant's forwarding address, they have 15 days to return the deposit(s) with any interest to the tenant if there are no issues. 

Landlords can't charge tenants a fee for returning the deposit. Ways to return the deposit include: 

• Electronically
• In person 
• By mail
• Leaving it in the mailbox or mail slot at the tenant's new residence

Conditions for keeping a deposit 

Landlords can't decide to keep a deposit on their own. To keep the deposit, the landlord must get: 

• Written permission from the tenant
• An official Residential Tenancy Branch (RTB) order 

Learn more about keeping a deposit. 

If the landlord doesn't respond within 15 days

If the landlord doesn't take any actions within the 15-day timeline, the tenant can:

• Make a direct request application requesting that their landlord returns the deposit 
• The landlord may be ordered to pay the tenant double the amount of the deposit(s).  ​

A tenant can submit a direct request application 20 days after the tenancy has ended and the tenant gives the landlord their forwarding address.

Interest is payable on deposits

The interest payable on deposits for 2024 is 2.7%.

The landlord must calculate the interest owing on the full amount of the deposit before: 

• Returning the deposit(s) 
• Asking the tenant to agree to any deductions 
• Applying for dispute resolution to keep all or some of the deposit

Then, the landlord must factor in any interest owed when returning some or all of the deposit. 

• Use the Deposit Interest Calculator

Fees during tenancy

Keys 

Landlords can't charge the tenant for the key or access device if it's the only means of entry. Landlords can charge a fee for additional keys and other keys or devices. This fee must not exceed the replacement cost and  must be refunded upon return. 

• Learn more about locks and keys

Application fees 

Landlords can't charge a fee for accepting, reviewing or processing a rental application. 

Moving fees 

Landlords can charge fees for unit moves within multi-tenanted buildings, but not exceeding $15 or 3 percent of monthly rent, as stated in the tenancy agreement. A move-in fee can be charged if required by strata bylaws.

• Learn more about strata fees

Parking and storage fees

Landlords can add parking and/or storage fees to the tenancy agreement. If included, these fees can't exceed the annual allowable rent increase. If the tenant believes these fees are unreasonable, they should contact the RTB for help. Separate agreements may have no fee limits, so tenants should carefully read and understand any agreement before signing.

Late rent fees

Landlords can charge non-refundable late rent fees, but they can't be more than $25. The tenancy agreement must also clearly state a late rent fee is in place. 

Tenant role, rights and responsibilities 

Keeping track of deposits 

Tenants should ensure they keep track of any deposits they have paid to the landlord. This could include: 

• An e-transfer confirmation 
• A receipt from the landlord for cash or cheque deposits

Paying deposits within 30 days 

Tenants must pay the security deposit within 30 days of signing the tenancy agreement or the pet damage deposit within 30 days of when it’s required.

If a tenant doesn't pay these deposits within 30 days, the landlord can serve a notice to end the tenancy. 

Deposits can't be applied toward rent 

Tenants can't use any deposits toward the rent without written permission from the landlord. 

Landlord role, rights and responsibilities

Ending the tenancy over unpaid deposits 

Landlords can serve a One Month Notice to End Tenancy (PDF, 2.1MB) - Form RTB-33 if a tenant fails to pay the security deposit within 30 days of entering into the tenancy agreement or a pet damage deposit within 30 days of when it’s required. 

Keeping all or part of a deposit 

Use the Holding Deposits Calculator and get information about returning and keeping deposits

Ask the tenant to agree in writing

Landlords can ask the tenant to agree in writing to any deductions from the deposit, for example in situations where there is damage beyond normal wear and tear in the rental unit.

If the tenant agrees to a partial deduction, the landlord must:

• Return the rest of the amount owed to the tenant
• Pay the tenant interest based on the full amount of the deposit

Seek dispute resolution 

Landlords can seek dispute resolution through the RTB asking to keep all or part of the deposit amount. An arbitrator will determine the amount of the deposit the landlord can keep. 

Deposits transfer if there is a new landlord or owner

If the landlord changes or the rental unit is sold, the new landlord becomes responsible for returning the deposits to the tenant. 

Landlords should communicate with the new owner or property manager to ensure the deposit is transferred. Tenants should be informed that the new landlord is holding their deposits. 

Resources

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