What to do if your landlord doesn't pay your deposit back?
Know your legal rights
When you rent a property, one of the most common upfront costs is to pay a deposit to the landlord. This deposit is usually one, two, or three months' rent in advance. The landlord must invest this in an interest bearing account.At the end of the lease, if there are no damages to the property during your rental stay, the landlord must refund the deposit plus any interest earned. If requested, the landlord must provide written proof of the interest earned.
Use of the deposit
The only time a landlord can use a deposit is:
- To pay for repairs for damages made by the tenant during the rental period.
- To pay for repairs after inspecting the property when the tenant has left the premises (within 21 days of the tenant’s exit).
- To cover costs for a legal eviction.
- To address rent or utility arrears at the end of a lease.
The landlord cannot use the deposit for general maintenance, fines for unpaid rent, or repairs for fair wear and tear (e.g., peeling paint).
When is the deposit returned?
Only after a lease is concluded is the landlord required to return the deposit to the tenant. This is done after a property inspection within seven days of the tenant leaving.
If a landlord does not perform this inspection, the property is considered in good condition, and the deposit must be refunded in full, including interest earned.
Actions to take if your deposit is not refunded
If your landlord refuses to refund your deposit, you can take the following steps:
- Consult with an attorney who specializes in rental law.
- Approach the Rental Housing Tribunal (RHT).
