Large Rental Deposits – Double Edged Sword

March 5th, 2014 · 3 Comments · Kids & Family

napali
paul bica / Foter / CC BY

While searching on Canlii a few days ago, I can across this fresh new Divisional Court Decision. I’ve discussed before about how new immigrants are often discriminated against and they have to pay large multi month deposits before landlords will rent to them. Well, guess what, those landlords now have to pay interest on those large deposits. In this case $90,000 so it’ll add up quickly.

Alison Corvers v. Tanveer Bumbia

Frankly I find this kind of deposit to be overreaching on the part of the landlord.

Shame.

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3 Comments so far ↓

  • Greg

    I thought the only deposit you are allowed to take was for last months rent?

  • Rachelle

    That’s what I know too. So i have no idea what the case was even about. The deposit was voluntary according to the testimony.

  • Devore

    Deposit rules vary by province. In BC, it is illegal to ask for (or offer!) larger than maximum allowed deposit (1/2 month’s rent), or to pay more than the monthly rent (ie, prepayment), although I suppose customized fixed term leases could deviate.

    Also, interest is payable on the deposit money when the tenant moves out, although I doubt most landlords do that, certainly not amateurs, and the rate is 0% these days anyways. BC RTO even has a calculator for this http://www.rto.gov.bc.ca/content/calculator/calculator.aspx

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