Landlords in B.C. will now have to pay interest on a tenant’s damage deposit for the first time since 2008.
For the past four decades, the province’s tenancy laws have required this but because the prime interest rate was below the 4.5 per cent threshold, payment was not obligatory from 2009 up to last year.
Now landlords will have to pay 1.95 per cent interest on a tenant’s security or pet deposits.
“Before returning the deposit(s), asking the tenant to agree in writing to any deductions, or applying for dispute resolution to keep all or some of the deposit, the landlord must calculate the interest owing on the full amount of the security or pet damage deposit. Then, the landlord must factor in any interest owed when returning some or all of the deposit,” the province explains on its website.
For anyone who is unsure of how much interest they are entitled to, there is a calculator on the province’s website.