Security Deposit Rules for BC Landlords
How much you can hold, what you can keep, and the 15 day deadline that decides whether you can claim at all.
Last updated: October 2026
Short answer
A BC landlord can take a security deposit of up to half of one month's rent, and within 15 days of the tenancy ending and the forwarding address arriving must return it with interest or apply to the RTB. Miss that deadline and you owe the tenant double.
How much deposit can a BC landlord take?
A landlord must not require or accept a security deposit or a pet damage deposit greater than half of one month's rent. The cap is based on the rent at the time of the first tenancy agreement, not on later increases. If a tenant overpays, they may deduct the overpayment from rent.
- Security deposit: up to half of one month's rent, and only when you and the tenant enter into the tenancy agreement.
- Pet damage deposit: if you allow a pet, you may also require a pet damage deposit, also up to half of one month's rent. Only one pet damage deposit is allowed per tenancy, however many pets there are.
- Both together: at most one full month's rent.
A tenant must pay within 30 days of signing, and a tenant who does not can be served a One Month Notice. Paying the deposit establishes the tenancy. The rules sit in the Residential Tenancy Act and on the BC deposits and fees page. Tenants read the same rules in our BC security deposit guide.
Fees that are not allowed alongside a deposit
BC limits what else you can collect. You cannot charge a monthly pet fee beyond the pet damage deposit. You cannot charge a fee for accepting, reviewing or processing a rental application. You cannot charge for repaying the deposit. You cannot charge a guest fee, whether or not the guest stays overnight.
A pet damage deposit cannot be required for a tenant with a guide or service dog. A key or fob fee is allowed only if it is refundable on return and no more than the direct cost of replacing the key, and not when that key is the tenant's only way in.
Do the condition inspections or lose the right to claim
A move-in and a move-out condition inspection are required, not optional. You and the tenant inspect the unit together at move-in and again at move-out.
- Offer the tenant at least two chances to inspect. The second must be proposed in the approved form.
- Complete a condition inspection report (the approved form is RTB-27) and have both sides sign it.
- Give the tenant a copy: within 7 days after the move-in inspection, and within 15 days after the later of the move-out inspection and receiving the forwarding address.
If you do not offer two opportunities, do not take part, or do not complete the report and give the tenant a copy, your right to claim against the deposit for damage is extinguished. At move-out that does not apply if the tenant abandoned the unit. A tenant who is offered two chances and takes part in neither loses the right to the deposit's return.
The loss is limited to damage claims against the deposit. RTB Policy Guideline 17 says you can still claim other amounts, such as unpaid rent, against the deposit, deduct an unpaid earlier order, and file a separate monetary claim for damage.
Returning the deposit: the 15 day rule
Within 15 days after the later of (a) the day the tenancy ends and (b) the day you receive the tenant's forwarding address in writing, you must do one of two things:
- Repay the security deposit and pet damage deposit, with interest.
- Apply to the Residential Tenancy Branch for dispute resolution, claiming against the deposit.
Landlords cannot decide to keep a deposit on their own. You may keep an amount only in the cases shown below. If the tenant never gives a forwarding address in writing within one year after the tenancy ends, you may keep the deposit.
| Situation | Can you keep money? |
|---|---|
| Tenant agrees in writing at the end of the tenancy | Yes, the agreed amount |
| RTB orders it after your application | Yes, the ordered amount |
| An earlier RTB order against the tenant is still unpaid | Yes, that amount |
| Reasonable wear and tear | No |
| You simply decide | No |
What the deposit can cover
The security deposit covers unpaid rent and damage caused by the tenant beyond normal wear and tear. At the end of the tenancy a tenant must leave the unit reasonably clean and undamaged except for reasonable wear and tear, and hand back all keys. Landlords cannot keep a deposit for wear and tear. A pet damage deposit may be used only for damage caused by a pet, unless the tenant agrees otherwise.
When you claim for older items, expect an adjustment. RTB Policy Guideline 40 lets an arbitrator reduce compensation for betterment based on the remaining useful life of the item. Its example: a dishwasher with a useful life of 10 years that was 5 years old might support about $450 of a $900 replacement.
Any amount above the deposit goes through an RTB application for compensation. The deposit can be applied against the award. Monetary claims at the RTB must be $35,000 or less,, and an application must be made within 2 years after the tenancy ends.
Interest you owe on the deposit
Interest is owed on both the security deposit and the pet damage deposit. The rate is set by the Residential Tenancy Regulation at 4.5% below the prime lending rate of the Province's principal banker on January 1 of each year, compounded annually on the anniversary of the date you received the deposit.
The government page lists the rate as 0% for 2026, 0.95% for 2025, 2.7% for 2024 and 1.95% for 2023.
If you have to pay double the deposit, interest is calculated on the original deposit only and is not doubled.
What happens if you miss the deadline
If you neither repay the deposit nor apply to the RTB in the 15 days, you may not claim against the deposit and you must pay the tenant double the security deposit, the pet damage deposit, or both. The tenant applies to the RTB. A direct request, with no hearing, can be filed 20 days after the tenancy ended and the forwarding address was given.
A sale does not clear the duty. Landlord deposit obligations run with the land, so a new owner is bound to return the deposit.
If you do apply on time, the RTB filing fee is $100 for most applications. Keep your inspection report, photos, receipts and any signed consent. For a clean start, see our guide to screening tenants in BC and the Ask page on when a landlord can keep a deposit. Related Ask pages cover how much a landlord can ask for as a deposit.
This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.
Frequently Asked Questions
What is the maximum security deposit in BC?
Half of one month's rent, based on the rent at the time of the first tenancy agreement. A separate pet damage deposit is also allowed, also capped at half a month's rent, so the two together are at most one month's rent.
How long does a BC landlord have to return a deposit?
15 days after the later of the end of the tenancy and the date the landlord receives the tenant's forwarding address in writing. The landlord must repay the deposit with interest or apply to the RTB for dispute resolution.
What if I miss the 15 day deadline in BC?
The landlord may not claim against the deposit and must pay the tenant double the deposit. Interest is calculated on the original deposit only and is not doubled.
Can I keep the deposit for cleaning or damage?
Only with the tenant's written agreement at the end of the tenancy, or with an RTB order. Cleaning can be claimed if the unit is not reasonably clean, but wear and tear cannot be charged.
Is a move-out inspection required in BC?
Yes. The landlord must offer at least two opportunities, complete a condition inspection report and give the tenant a copy, or lose the right to claim against the deposit for damage.
Do I pay interest on a BC security deposit?
Yes. The rate is set each January 1 at 4.5% below the prime lending rate and compounds annually. The government page lists 2026 as 0%.
Can I charge a monthly pet fee in BC?
No. The only pet money allowed is one pet damage deposit, up to half a month's rent, however many pets are permitted.
Can a BC landlord charge an application fee?
No. A landlord cannot charge a fee for accepting, reviewing or processing a rental application.
Sources
Keep deposits and inspections organized
Track deposits, inspection reports and move-out dates for your BC rental in one place.
Open landlord tools