Damage Deposit

[tcarlson]

Two Quick Questions:
Property is in Alberta. Renters threatened to leave if I didn`t lower the rent for the second time in a year. So they are moving mid-December and want their DD back in order to put it down on the next place. I am concerned that, as they are responsible for utilities until the end of December, that I need to keep the DD until the end of the month or more. So...

1) Do we return the damage deposit with interest?
2) How long can we keep the DD after lease up (i.e., to cover utilities, get work done etc)?

Thanks
Torie

 

[lanedry77]

Hi Torie,
See here for the details on the return of the SD: http://landlord.landlordandtenant.org/llen...rn_deposit.aspx
See here to calculate the interest owed: http://www.servicealberta.gov.ab.ca/978.cfm

In brief, you have 10 days from their move-out to return the security deposit (plus interest, minus any applicable and documented deductions). This means a postmark of 10 days is still within the law, should you choose to mail it back to them.

Tell the tenant to pay their utilities the day after they move out to ensure they get their SD back as soon as possible. Confirm they`ve paid before issuing the SD back. My personal thought is that hold true even if it takes longer than 10 days.

Call the utility company to verify they`ve paid. This mean you`ll have to get them to sign a form allowing you access to their account.


David.

 

[JimWhitelaw]

QUOTE (tcarlson @ Nov 29 2009, 06:46 PM) 1) Do we return the damage deposit with interest?
2) How long can we keep the DD after lease up (i.e., to cover utilities, get work done etc)?

1) Yes. But: the current rate in AB is 0%. Use this calculator to find the correct amount of interest due:

http://www.servicealberta.gov.ab.ca/978.cfm
2) Deposit must be paid ten days after moveout.

"If there are no deductions for rent, other costs, cleaning or repairs, the landlord must pay the tenant their full deposit plus interest within 10 days of the day the tenant gave up possession of the premises."

http://www.servicealberta.gov.ab.ca/1022.cfm

 

[JimWhitelaw]

Ha! David beat me to it while I was writing!

 

[tcarlson]

QUOTE (JimWhitelaw @ Nov 29 2009, 08:13 PM) Ha! David beat me to it while I was writing!

Thanks David and Jim. Further, if the lease expires December 31st (What was I thinking?) and they move out December 18...is the 31st still technically the date they "give up possession"?
Torie

 

[ChrisDavies]

QUOTE (tcarlson @ Nov 29 2009, 09:10 PM) Thanks Kevin and Jim. Further, if the lease expires December 31st (What was I thinking?) and they move out December 18...is the 31st still technically the date they "give up possession"?
Torie

Yes, although if they`re out and you can see that there`s nothing wrong that you`d have to deduct from teh DD, I don`t see a problem sending it to them in time for Christmas.

 

[brentdavies]

Wow, the quick and quality of the replies are great.

The tenant deposit/statement must be postmarked 10 days after the tenant is vacated. Make sure to have the tenant sign the inspection report on the move out, providing you completed the proper move in report.