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  • Writer's pictureThe Kaplan Team

THOUGHT OF THE WEEK Deposits for rental agreements

The Rental Housing Act regulates the relationship between landlords and tenants, sets out certain rules that each must comply with and provides for procedures to be followed in the event of a dispute arising.

One such provision relates to deposits. The Act permits a landlord to request a tenant to pay a deposit before taking occupation of the property. The landlord is then obliged to invest this deposit in an interest-bearing account with a financial institution. On the expiration of the lease, the landlord may apply the deposit and interest towards the payment of all amounts for which the tenant is liable under the lease, including the reasonable cost of repairing damage to the dwelling during the lease period. The balance of the deposit and interest, if any, must then be refunded to the tenant by the landlord not later than 14 days of restoration of the dwelling to the landlord.

A tenant has the right to request the landlord to provide a written receipt reflecting all payments made, as well as written proof of interest earned on the deposit.

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This article is not intended to constitute legal advice and is produced for information purposes only and to provide a general understanding of the legal position relating to the topic. It is recommended that advice relating to the specific circumstances of your situation be sought from our attorneys before acting upon the content of this article. This article was written at a particular point in time and accordingly may not always reflect the most recent legal developments, if any, applicable to the relevant topic. Kaplan Blumberg and its partners and/or employees, are not responsible for any consequences which may follow upon any decision taken to act upon the information provided in this article.

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