British Columbia Sets 2017 Interest Rate for Security Deposits

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The interest rate to accrue on security and pet deposits in 2017 in British Columbia is set at 0%.

Under the Residential Tenancies Act, landlords must account to tenants for interest at a rate that is set annually. That figure is equal to 4.5% under the prime lending rate as of January 1 of that year. Currently, the lending rate is 2.7%. The interest rate requirement has remained unchanged since 2009.

Also, recent changes to the RTA allow landlords to return deposits to tenants electronically, so long as no fee is charged to the tenant for the transfer.

Generally, landlords in B.C. must return the full deposit to the tenant, whether electronically, in person, by mail, or delivery to the tenant’s residence. If the landlord wishes to claim deductions from the deposit, the landlord must seek an agreement from the tenant in writing, or file for dispute resolution.

If the tenant has provided a forwarding address, the landlord must return the deposit or file for dispute resolution to claim deductions within 15 days. A review of recent dispute resolution decisions in B.C. reveals that some landlords are unaware of or fail to meet the 15-day deadline, and are then unable to claim deductions against the deposit.

This post is provided by Landlord Tenant Rights to help landlords and property managers reduce the risks of rental income loss. Landlord Tenant Rights provides articles on Reporting Tenant Rent Pay and Tenant Screening to ensure the necessary information is readily available to all Landlord & Tenants.

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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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