Residential Tenancies Branch

Section 10 

Security Deposit

Sub-Section10.2

Claim by Landlord - Landlord Can't Find Tenant

Legislation

s. 32, 34, 35, The Residential Tenancies Act

Definitions

Security deposit: is money a tenant pays to a landlord before the start of a tenancy. A security deposit can’t be more than half of the first month’s rent. The landlord holds the money until the tenant moves out. When a tenancy ends, a landlord may claim the security deposit for unpaid rent, damage, extraordinary cleaning costs or other obligation of the tenant. Many people refer to this money as a damage deposit.

Security Deposit Compensation Fund: an account set up to hold unclaimed security deposits, rent refunds and proceeds from the sale of abandoned property. The Branch can use the money in the fund to return a security deposit to a tenant. Many people refer to this money as a damage deposit.

Policy

If a landlord has a claim against a security deposit, but can’t find the tenant, they can still ask the Branch to make a decision on their claim. Before making a decision, the Branch needs information from the landlord to support the claim.  For example: rental unit condition reports, invoices, rent ledgers and pictures.

<><><><>

Before making a decision on a claim, the Branch sends a copy of the claim to the tenant’s last known address (this may be the address of the rental unit). The officer does this in case Canada Post is forwarding the tenant’s mail.

If the tenant contacts the Branch after receiving the claim and the landlord has a claim for more than the security deposit, the Branch will give the landlord an opportunity to file their full claim. The landlord may file the claim and have a hearing scheduled to decide the matter. Normally, the Branch gives the landlord the tenant’s address so they can serve them with the claim. The Branch serves the tenant if the tenant can prove there’s good reason not to give the address to the landlord. The Branch won’t give the landlord the tenant’s address if there is a restraining order or a non-molestation order between the landlord and tenant.

<><><><>

If  the  tenant  doesn’t  respond  to  the  claim,  the  Branch  makes  a decision on the  security  deposit  only. The Branch can’t issue a decision until at least 60 days after the end of the tenancy.  The  Branch  may  award  the  security deposit  to  the  landlord  in  partial  satisfaction  of  their  claim.  If  a  landlord  has  a  claim  for  more  than  the  security deposit, they may file for the  rest of their  claim,  when  they  find  the tenant. A landlord has  up to six years after the end of the tenancy to file a claim.

<><><><>

If the landlord is only claiming part of the security deposit and interest, the landlord must send the rest of the money to the Branch. The Branch will hold the money for the tenant for up to two years. After two years, the money goes into the Security Deposit Compensation Fund. Once the money goes into the Fund, the tenant is no longer entitled to it. The tenant can’t file a claim for compensation against the landlord for the deposit.

Procedure

Overview   

A landlord comes to the Branch with a claim against a security deposit, but doesn’t know where the tenant is. The officer sends the claim to the tenant’s last known address. If the tenant responds to the claim, the officer follows set procedures to process the claim. If the tenant doesn’t respond to the claim, the officer makes a decision on the security deposit.

Steps ▼   

1.   When a landlord comes to the Branch with a claim, an officer asks the       landlord for evidence to support their claim. The officer sends the claim to       the tenant’s last known address.

      If the tenant contacts the officer, the officer tries to help the landlord and       tenant reach an agreement on the claim. If the landlord and tenant can’t       agree, an officer makes a decision on the claim. If the landlord’s claim is       for more than the security deposit, the landlord may file a claim and have       a hearing to decide the claim (see Claims in Section 9). If the landlord       doesn’t file a claim, an officer makes a decision on the security deposit in       full and final settlement.

      If the tenant doesn’t contact the officer, and it’s 60 days past the end of       the tenancy, the officer makes a decision on who should get all or part of       the security deposit. The officer sends the Order to the landlord and       tenant. If the officer awards the landlord the security deposit in partial       satisfaction of their claim, the officer specifies what the deposit is to       cover.  For example: The landlord is awarded the security deposit and       accrued interest of $304.70 in partial satisfaction of the claim for       May’s rent of $600.00. If the landlord finds the tenant later, the landlord       may file a claim for the balance of the money they believe the tenant owes       them.

Forms & Form Letters

X-Referencing

For more information on a claim against a security deposit see this section.
For details on claims, see Section 9.

Policy Developed

September, 1992

Last Revision

March, 2004

Other Resources

None

  Top