The answer to the question of whether or not you can charge your tenant a security deposit in Canada depends on which province or territory you live in.
In some provinces and territories, such as Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Saskatchewan, and the Northwest Territories, it is legal to charge a security deposit. However, there are limits on the amount of the deposit and how it can be used. For example, in Alberta, the security deposit cannot exceed one month’s rent.
In other provinces and territories, such as Ontario and Quebec, it is illegal to charge a security deposit. In these jurisdictions, landlords can only collect a rent deposit, which is equal to one month’s rent and must be used to cover the final month’s rent payment.
If you are a landlord in a province or territory where security deposits are legal, you should be aware of the following:
- You must provide your tenant with a written receipt for the security deposit.
- You must keep the security deposit in a separate account and interest must be paid on the deposit.
- You can only use the security deposit to cover unpaid rent, damages to the rental property beyond normal wear and tear, and cleaning costs beyond normal wear and tear.
- You must return the security deposit to your tenant, minus any deductions, within 30 days of the end of the tenancy.
If you are a tenant in a province or territory where security deposits are legal, you should be aware of the following:
- You have the right to ask your landlord to see a copy of the statement of account for the security deposit at any time.
- You have the right to dispute any deductions from the security deposit.
- If your landlord does not return the security deposit to you within 30 days of the end of the tenancy, you can file a complaint with the provincial or territorial housing authority.
Whether or not you can charge your tenant a security deposit in Canada depends on which province or territory you live in. If you are a landlord, it is important to be aware of the laws governing security deposits in your jurisdiction. If you are a tenant, it is important to know your rights and what to do if you have a dispute with your landlord over a security deposit.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.
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