In British Columbia, the rules around returning a security deposit are strict, clear, and intentionally designed to protect tenants from unfair withholding. Under the Residential Tenancy Act, a landlord has 15 days to deal with a tenant’s security deposit once the tenancy ends and the landlord receives the tenant’s forwarding address in writing. Within that 15-day period, the landlord must do one of three things: return the full deposit (plus interest), obtain the tenant’s written agreement to keep some or all of it, or file an application for dispute resolution with the Residential Tenancy Branch to claim against the deposit.
If the landlord fails to take any of these steps within the deadline, the consequences are serious. The landlord automatically loses the right to claim the deposit, even if the tenant caused damage or left the unit in poor condition. On top of that, the tenant can apply for an order requiring the landlord to pay double the amount of the security deposit. This is not discretionary or symbolic—it is a legislated penalty meant to enforce compliance with the law. See Section 38(6) of the Residential Tenancy Act (British Columbia).
The rationale behind this rule is accountability and fairness. Security deposits belong to the tenant unless the landlord can lawfully justify keeping them. By imposing a strict timeline and a financial penalty for non-compliance, the law discourages landlords from delaying, ignoring requests, or informally holding onto deposits without evidence. It also ensures disputes are resolved through a formal process rather than unilateral decisions.
This rule also highlights why proper move-in and move-out inspections are so important. If a landlord believes deductions are justified, they must act quickly and rely on documented evidence. In BC, failing to follow the process—even with legitimate claims—can be costly. The double-deposit penalty reinforces that procedural compliance is just as important as the condition of the rental unit itself, making the system more transparent and balanced for both landlords and tenants.