In British Columbia a security deposit cannot exceed half of one month’s rent, and a pet damage deposit is capped at the same amount. Once the tenancy ends and you have the tenant’s forwarding address in writing, you have 15 days to act — or you can be ordered to repay double.
What you may collect
- Security deposit: maximum half of one month’s rent.
- Pet damage deposit: a further half month, and only where pets are permitted. The cap is the same regardless of how many pets are allowed.
- The tenant has 30 days to pay a required deposit.
On a $2,400 suite that is up to $1,200 in security and up to $1,200 for pet damage. You cannot charge a separate cleaning deposit, key deposit or last month’s rent on top.
The 15-day rule
This is the one that costs landlords money. After the tenancy ends and the tenant provides a forwarding address in writing, you have 15 days to do one of the following:
- Return the deposit in full; or
- Get the tenant’s written permission to keep some or all of it; or
- Apply to the Residential Tenancy Branch for dispute resolution.
Do none of those and the tenant can apply directly — and an arbitrator may order you to pay double the deposit. Verbal agreement is not enough.
What a deposit can actually be used for
Deposits cover damage beyond reasonable wear and tear, and unpaid rent or utilities. They do not cover ordinary ageing: faded paint, worn carpet in a hallway, or minor scuffs after several years of normal occupancy.Without a signed condition inspection report at both move-in and move-out, proving damage becomes very difficult.
Frequently asked questions
Can I keep the pet damage deposit if there was no pet damage?
No. It must be returned if the unit has no pet-related damage, even if there is other damage — the two deposits are assessed separately.
Does interest accrue on deposits in BC?
Yes, at a rate set by regulation, payable to the tenant at the end of the tenancy. In recent years the rate has often been zero, but it should still be calculated rather than assumed.
What if the tenant never gives a forwarding address?
The 15-day clock generally starts once you receive it in writing. Keep records of what you received and when.
Can I deduct cleaning costs automatically?
Only with written permission or an arbitrator’s order. A tenant must leave the unit reasonably clean, but that is not the same as professionally cleaned.
Protect yourself with process
Deposits become expensive when documentation is thin.
We handle deposits, inspection reports and the statutory deadlines for owners across the Lower Mainland.General information, not legal advice. Confirm current rules with the BC Residential Tenancy Branch.
