B.C. landlord ordered to return damage deposit to tenant who never moved in

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The B.C. Civil Resolution Tribunal has ordered a landlord who kept a damage deposit from a tenant who never moved in to pay it back, finding there was no legal basis to withhold the sum.

In March of last year, applicant Kieran Ryckman-Harding toured a room in respondent Harold Markus’ house and agreed to rent it for $1,100 per month, according to the decision issued Monday.

Ryckman-Harding paid a $550 damage deposit. However, the next day, he changed his mind about moving in and texted Markus to ask for the money back. He refused.

Tribunal member Christopher Rivers noted in the decision that the sole term of the tenancy, found on the damage deposit receipt, was that the rent was due on the last day of the month, and did not include any agreements about notice, minimum tenancy, the deposit’s return, “or anything else.”

Markus argued in submissions that after a “security deposit” is paid, the tenancy is considered established, and the money can be used to cover unpaid rent.

“While the respondent refers to ‘B.C. laws on security damage deposits,’ he does not provide me with any legislation or caselaw to support his position,” Rivers wrote. “I find the respondent is alleging the applicant breached an implied contractual term that if the applicant changed his mind about moving in, he would still owe rent for the first month, and would forfeit the deposit.”

However, Rivers pointed out that the parties called the payment a “damage deposit,” not a “security deposit,” on the receipt and in submissions.

“Here, I find the deposit’s purpose was apparent from its name: a damage deposit. Its purpose was to ensure the respondent had funds to repair damage the applicant may cause to the property during the tenancy,” he wrote. “Contrary to the respondent’s argument, I know of no British Columbia law that permits a party to keep a deposit provided to fix potential damage to property where there was no such damage.”

The tribunal ordered Markus to pay Ryckman-Harding $550 for the damage deposit, $36.67 in pre-judgment interest, and $125 in CRT fees.