Landlord & Tenant Frequently Asked Questions

http://www.rto.gov.bc.ca/documents/Guides/ACT_English.pdf us this web site to

answer the following questions.

What is a security deposit? - A security deposit is a one-time only payment and

cannot be more than one month's rent. A landlord must place a security deposit in a
trust account within two days of receiving it. The money stays in the trust account
until the tenant moves out of the house. Landlords must pay tenants interest on
security deposits.
Must a landlord provide a receipt for a security deposit? The landlord must give
the tenant a written receipt stating the amount of the deposit, the date of payment,
and the premises to which it applies. The security deposit is not an asset of the
landlord, but must be held in trust by the landlord.
Does a landlord have to pay interest on a security deposit? - When a security
deposit is refunded to a tenant, a landlord shall also pay interest on the security
deposit for the entire period the landlord has had the security deposit.
How much can be charged for a security deposit? - The amount of the security
deposit that a landlord can ask a tenant to pay depends on the type of rental
agreement: if the premises are rented from week to week, the deposit cannot be
greater than the first two weeks rent; for a monthly rental agreement, it must not
exceed three-quarters of the first months rent; where the premises are rented for a
fixed term of 6 to 12 months, the deposit cannot exceed three-quarters of the first
months rent if the rent was proportioned to a monthly payment.
How much time does a landlord have to return a security deposit after the tenant
moves out? - The landlord shall return the security deposit to the tenant within 15
days after the tenant vacates, unless the landlord has a claim for all or a portion of
the security deposit. A landlord can keep a security deposit with the tenant's
Written Permission. When a landlord and tenant disagree on the status of the
security deposit, then either party should contact our office to Start a Claim to
determine the disposition of the money
What is a rental agreement? - The Residential Tenancies Act refers to a landlord and
tenant relationship as a rental agreement. The agreement can be oral or written and
is a legal binding contract between the parties. It may be simple and brief, or it may
contain extra conditions or obligations. Any and all changes or additions to a verbal
or written rental agreement should always be noted in writing. It is important to
note that any conditions or obligations in a rental agreement are not valid if they
contravene the Act.

What are the types of rental agreements? - There are three types of rental
agreements: week-to-week; month-to-month; a fixed term of not less than 6 months
and not more than 12 months. The type of rental agreement will determine when
the rent is due and the minimum notice of termination to be given by the landlord
or tenant.
Must a landlord give a copy of a signed rental agreement to the tenant? - Yes, the
landlord shall give the tenant a duplicate copy of the Rental Agreement PDF within
10 days after the date of signing by all parties. If the landlord fails to do this, the
tenant is not obligated to pay rent until the tenant receives a copy of the rental
agreement. However, any rent already paid may be kept by the landlord.
Must a landlord give a tenant a copy of the Residential Tenancies Act? - Yes, Under
Section 5 and 6 of the Residential Tenancies Act, a landlord has to provide a copy of
the Act, without cost, to the tenant, upon entering into a rental agreement.
What is a Rental Premises Condition Report form? - The Rental Premises Condition
Report PDF (55 KB) is completed, signed and dated by the tenant and landlord to
show the condition of the residential premises at the beginning and end of the
rental agreement. Both landlords and tenants find that an inspection report is in
their best interests. A tenant can use it to show there were damages before the
tenant moved in. A landlord can use it to show damages which were not there
before the tenant moved in.
Does the Residential Tenancies Act apply to a verbal rental agreement? - Yes, the
Act applies to a verbal rental agreement.
Can a landlord request post dated cheques for rent payments? - Yes, the landlord
can request post dated cheques.
Are there residential premises not covered by the Act? - There are certain premises
which do not come under the Act, such as accommodations: where meals and bed
linens are provided; where the owner shares bathroom and kitchen facilities with an
occupant, as in a boarding home; provided by an educational institution to its
students (including units owned by Memorial University of Newfoundland); provided
by religious, charitable or non-profit organizations; in a hospital or nursing home;
occupied on a transient basis provided in a hotel, motel, inn, tourist home or hostel.
Does the Act apply to business/commercial rental agreements? - No, the Act does
not apply to this type of landlord-tenant relationship.
Is a tenant responsible to have insurance on his/her personal belongings? - Yes, a
tenant is responsible to carry insurance on his/her personal belongings. A tenant's
personal belongings are not covered by insurance the landlord may have on the
residential premises.

When a rented premises is sold to a new owner, does the rental agreement
continue? - Yes, the Rental Agreement (written or verbal) continues as if there was
no change in ownership, however a foreclosure may result in an exception.
What happens to a security deposit when there is a change in ownership? - The new
owner will be responsible for the security deposit.
Can a landlord charge a fee for late payment of rent? - Yes, the landlord can charge
$5.00 for the first day the rent is late and $2.00 for each additional day the rent is
not paid up to a maximum of $75.00.
Can a landlord charge a fee if a tenant's rent cheque is returned because of non
sufficient funds (N.S.F.) in the tenant's account? - If a rent cheque is returned N.S.F.,
a landlord may charge a fee not greater than $25.00.
Can a tenant withhold rent because a landlord is not maintaining the premises? No, not paying the rent may result in the landlord serving a short Termination
Notice. The tenant has other options to have a landlord carry out required
maintenance work. The tenant should contact the landlord in writing outlining the
maintenance work required. If the landlord does not then carry out requested
maintenance work, or if any work carried out is not satisfactory the tenant may
contact the Division for assistance.
Can a landlord terminate a rental agreement when the tenant does not pay rent? Yes, a landlord can give a short Termination Notice when the rent is not paid. Please
refer to our Information on Termination Notices (need pdf) for more details.
Can a landlord increase rent by giving a verbal notice to the tenant? - No, a landlord
must give the tenant a written notice to increase the rent.
Can a landlord increase rent anytime? - A landlord cannot increase the rent during
any fixed term rental agreement or during the first 12 months of a week to week or
month to month rental agreement.
Is a tenant responsible for damages to the residential premises? - A tenant is
responsible to repair damages where the tenant or one of the tenant's guests or
visitors caused the damages.
What can a landlord do if a tenant has not repaired damages? - A landlord can
request in writing a tenant to repair damages. If the tenant fails to do the repairs
within 3 days, or a reasonable time, if appropriate, then a landlord can give a tenant
a written Termination Notice of not less than 5 days.
Can a termination notice be verbal? - No, a termination notice must be in writing.
Where can I get a copy of the Residential Tenancies Act? - Official copies of the Act
can be purchased for $5.25 (including tax) at our Locations and at the Government

Service Centres. Credit card, debit card, cash, cheque and money order payments
are accepted. Cheques and money orders must be made payable to "Newfoundland
Exchequer". You can order copies by phone using your credit card by calling 1 877
829-2608.
If a landlord gives a tenant a Termination Notice in writing, is the tenant required to
give a written notice of his departure? - Yes, All notices of termination by a landlord
will also require a written notice from a tenant when he is leaving, otherwise rent is
payable to effective date of termination.