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This Policy Guideline is intended to provide a statement of the policy intent of legislation, and has been developed in
the context of the common law and the rules of statutory interpretation, where appropriate. This Guideline is also
intended to help the parties to an application understand issues that are likely to be relevant. It may also
help parties know what information or evidence is likely to assist them in supporting their position. This Guideline
may be revised and new Guidelines issued from time to time.

A. LEGISLATIVE FRAMEWORK

The Residential Tenancy Act (the Act) allows a landlord to require a tenant to pay a
security deposit 1. The Manufactured Home Park Tenancy Act prohibits a landlord from
requiring a tenant to pay a security deposit in respect of a manufactured home site
tenancy 2.

B. SECURITY DEPOSIT
1. A landlord may require a security deposit when the landlord and tenant enter into
a tenancy agreement3.
2. The tenancy agreement must not provide that the landlord automatically keeps all
or part of the security deposit at the end of the tenancy4.
3. A landlord may issue and serve on the tenant a Notice to End a Residential
Tenancy if the tenant fails to pay the required security deposit within thirty days
of the date it is required to be paid by the tenancy agreement5.
4. A tenant must not apply all or part of the security deposit to rent without the
written consent of the landlord6.
5. The tenant may agree in writing at the end of the tenancy that the landlord
may retain all or part of the security deposit7.
6. The right of a tenant to the return of a security deposit is extinguished if the
landlord has offered the tenant at least two opportunities for a condition inspection
as required by the Act and the tenant has not participated on either occasion8.
7. The right of a landlord to obtain the tenant’s consent to retain or file a claim
against a security deposit for damage to the rental unit is extinguished if9:
• the landlord does not offer the tenant at least two opportunities for inspection as
required 10 (the landlord must use Notice of Final Opportunity to Schedule a
Condition Inspection (form RTB-22) to propose a second opportunity); and/or
• having made an inspection does not complete the condition inspection report, in
the form required by the Regulation, or provide the tenant with a copy of it.
8. In cases where both the landlord’s right to retain and the tenant’s right to the return
of the deposit have been extinguished, the party who breached their obligation first
will bear the loss. For example, if the landlord failed to give the tenant a copy of
the inspection done at the beginning of the tenancy, then even though the tenant
1
Residential Tenancy Act (RTA), s. 17.
2
Manufactured Home Park Tenancy Act, s. 17.
3
RTA, s. 17.
4
RTA, s. 20(e).
5
RTA, s. 47(a).
6
RTA, s. 21.
7
RTA, s. 38(4)(a).
8
RTA, s. 24(1); RTA 36(1); RTA s. 38(2).
9
RTA, s. 24(2); RTA 36(2).
10
RTA, s. 23(3); Residential Tenancy Regulation, s. 17.
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may not have taken part in the move out inspection, the landlord will be precluded
from claiming against the deposit because the landlord’s breach occurred first.
9. A landlord who has lost the right to claim against the security deposit for damage
to the rental unit, as set out in paragraph 7, retains the following rights:
• to obtain the tenant’s consent to deduct from the deposit any monies owing for
other than damage to the rental unit;
• to file a claim against the deposit for any monies owing for other than damage to
the rental unit;
• to deduct from the deposit an arbitrator’s order outstanding at the end of the
tenancy; and
• to file a monetary claim for damages arising out of the tenancy, including damage
to the rental unit.
10. The landlord has 15 days, from the later of the day the tenancy ends or the date
the landlord receives the tenant's forwarding address in writing to return the
security deposit plus interest to the tenant, reach written agreement with the
tenant to keep some or all of the security deposit, or make an application for
dispute resolution claiming against the deposit11.
11. If the landlord does not return or file for dispute resolution to retain the deposit
within fifteen days, and does not have the tenant’s agreement to keep the
deposit, the landlord must pay the tenant double the amount of the deposit12.
Where the landlord has to pay double the security deposit to the tenant, interest
is calculated only on the original security deposit amount before any deductions
and is not doubled.
12. The obligations of a landlord with respect to a security deposit run with the land
or reversion13. Thus, if the landlord changes, the new landlord retains these
obligations.

C. RETURN OR RETENTION OF SECURITY DEPOSIT THROUGH DISPUTE

RESOLUTION
1. The arbitrator will order the return of a security deposit, or any balance remaining
on the deposit, less any deductions permitted under the Act, on:
• a landlord’s application to retain all or part of the security deposit; or
• a tenant’s application for the return of the deposit.
unless the tenant’s right to the return of the deposit has been extinguished under
the Act14. The arbitrator will order the return of the deposit or balance of the
deposit, as applicable, whether or not the tenant has applied for dispute
resolution for its return.
2. Where the tenant applies for return of the security deposit and the landlord
later applies for dispute resolution for claims arising out of the tenancy and the
hearings are not scheduled at the same time, the arbitrator will order the return
of the security deposit to the tenant and the landlord's claims will be heard
whenever scheduled after that, unless the parties and the arbitrator agree to
having the landlord's claim heard at the same time.

11
RTA, s. 38(1).
12
RTA, s. 38(6).
13
RTA. S. 93.
14
RTA, s. 24(1); RTA, s. 36(1), RTA, s. 38(2).
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3. Unless the tenant has specifically waived the doubling of the deposit, either on
an application for the return of the deposit or at the hearing, the arbitrator will
order the return of double the deposit15:
• if the landlord has not filed a claim against the deposit within 15 days of the later
of the end of the tenancy or the date the tenant’s forwarding address is received
in writing;
• if the landlord has claimed against the deposit for damage to the rental unit and
the landlord’s right to make such a claim has been extinguished under the Act16;
• if the landlord has filed a claim against the deposit that is found to be frivolous or
an abuse of the dispute resolution process;
• if the landlord has obtained the tenant’s written agreement to deduct from the
security deposit for damage to the rental unit after the landlord’s right to obtain
such agreement has been extinguished under the Act;
• whether or not the landlord may have a valid monetary claim.
4. In determining the amount of the deposit that will be doubled, the following
are excluded from the calculation:
• any arbitrator’s monetary order outstanding at the end of the tenancy17;
• any amount the tenant has agreed, in writing, the landlord may retain from the
deposit for monies owing for other than damage to the rental unit18 (see example
B below);
• if the landlord’s right to deduct from the security deposit for damage to the rental
unit has not been extinguished19, any amount the tenant has agreed in writing the
landlord may retain for such damage 20.
5. The following examples illustrate the different ways in which a security deposit
may be doubled when an amount has previously been deducted from the
deposit:
• Example A: A tenant paid $400 as a security deposit. At the end of the tenancy,
the landlord held back $125 without the tenant’s written permission and without
an order from the Residential Tenancy Branch. The tenant applied for a
monetary order and a hearing was held.
The arbitrator doubles the amount paid as a security deposit ($400 x 2 =
$800), then deducts the amount already returned to the tenant, to determine
the amount of the monetary order. In this example, the amount of the
monetary order is $525.00 ($800 - $275 = $525).
• Example B: A tenant paid $400 as a security deposit. During the tenancy, the
parties agreed that the landlord use $100 from the security deposit towards the
payment of rent one month. The landlord did not return any amount. The tenant
applied for a monetary order and a hearing was held.
The arbitrator doubles the amount that remained after the reduction of the
security deposit during the tenancy. In this example, the amount of the
monetary order is $600.00 ($400 - $100= $300; $300 x 2 = $600).

15
RTA, s. 38(6).
16
RTA, s. 24(1); RTA, s. 36(1), RTA, s. 38(2).
17
RTA,s. 38(3).
18
RTA, s. 38(4).
19
RTA, s. 24(2); RTA, s. 36(2).
20
RTA, s. 38(4).
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• Example C: A tenant paid $400 as a security deposit. The tenant agreed in

writing to allow the landlord to retain $100. The landlord returned $250 within 15
days of receiving the tenant’s forwarding address in writing. The landlord
retained $50 without written authorization.
The arbitrator doubles the amount that remained after the reduction authorized
by the tenant, less the amount actually returned to the tenant. In this example,
the amount of the monetary order is $350 ($400 - $100 = $300 x 2 = $600 less
amount actually returned $250).
Note: Interest is not included in the examples above, for the sake of simplicity.
Interest is calculated on the original security deposit amount, before any
deductions are made, and it is not doubled.

D. SET-OFF
1. Where a landlord applies for a monetary order and a tenant applies for a
monetary order and both matters are heard together, and where the parties are
the same in both applications, the arbitrator will set-off the awards and make a
single order for the balance owing to one of the parties. The arbitrator will issue
one written decision indicating the amount(s) awarded separately to each party
on each claim, and then will indicate the amount of set-off which will appear in the
order.
2. The Residential Tenancy Act provides that where an arbitrator orders a party to
pay any monetary amount or to bear all or any part of the cost of the application
fee, the monetary amount or cost awarded to a landlord may be deducted from
the security deposit held by the landlord and the monetary amount or cost
awarded to a tenant may be deducted from any rent due to the landlord21.
3. If a landlord does not return the security deposit or apply for dispute resolution to
retain the security deposit within the time required, and subsequently applies for
dispute resolution in respect of monetary claims arising out of the tenancy, any
monetary amount awarded will be set off against double the amount of the
deposit plus interest.
4. In cases where the tenant’s right to the return of a security deposit has been
extinguished under section 24 or section 36 [consequences for tenant and
landlord if report requirements not met] of the Act, and the landlord has made a
monetary claim against the tenant, the security deposit and interest, if any, will
be set off against any amount awarded to the landlord notwithstanding that the
tenant’s right to the return of the deposit has been extinguished. In this
situation, while the right to the return of the deposit has been extinguished, the
deposit itself remains available for other lawful purposes under the Act.
If the amount awarded to the landlord does not exceed the amount of the
deposit and interest, the balance may be retained by the landlord as the tenant
has forfeited the right to its return.
• For information about pet damage deposits refer to Policy Guideline 31: Pet
Damage Deposits.

21
RTA, s. 72(2).
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E. CHANGES TO POLICY GUIDELINE

Section Change Notes Effective Date
All New Added footnotes to legislative authority; added 2016-01-21
reference letters for policy guideline sections; minor
revisions for clarity
A new Added section on Legislative authority 2016-01-21
B, 10 Am Revised for clarity 2016-01-21
2016-01-21
C, 5 new Examples illustrating application of doubling 2016-01-21
provisions
Change notations
am = text amended or changed
del = text deleted
new = new section added