QUOTE (TerryF @ Jan 5 2008, 09:50 AM) We have just received security deposit money for a rental and it is currently in our personal savings account while we figure out where we should put it. This will likely be a short term rental (less than 6 months). My question is this...... can the money be left in our personal savings account as long as the balance in the account doesn`t drop below the value of the security deposit we are holding?Any thoughts from the experienced landlords out there?Thanks,Terry
Hi Terry,
The law states you must use a trust account (sec. 44 of the Residential Tenancies Act of Alberta), but I suspect few landlords do.
Trust account
44(1) A landlord shall
(a) deposit each security deposit consisting of money received by the landlord into an interest‑bearing trust account at a bank, treasury branch, credit union or trust corporation in Alberta within 2 banking days after receiving the deposit, and
(b) ensure that the security deposit remains in trust until it is disposed of in accordance with this Act and the regulations.
(2) A landlord is the trustee of the money in a trust account on behalf of the tenant who paid it or, if the tenant has assigned the residential tenancy agreement with the consent of the landlord under section 22, the assignee.
(3) A landlord shall deposit only money that is a security deposit in the trust account.
(4) Money in the trust account is subject to this Act and the regulations and to the provisions of the residential tenancy agreement respecting security deposits that are not in conflict with this Act or the regulations.
(5) A landlord shall
(a) keep security deposit records that show with respect to each tenant
(i) the date of receipt of a security deposit by the landlord and the amount of the security deposit,
(ii) the date on which the security deposit was deposited in a financial institution and the name and location of the financial institution,
(iii) particulars of the interest payable and paid to the tenant, and
(iv) particulars of the disposition of the security deposit under section 46, including the manner in which the security deposit or part of it was delivered to the tenant,
and
(b) make the security deposit records available for inspection by the Director or an authorized person for the purposes of an inspection or investigation under Part 6.
(6) A landlord shall keep security deposit records under subsection (5) for at least 3 years after the expiration or termination of the tenancy to which they relate.
Nick