The interest rate for security and pet deposits throughout British Columbia will remain at 0.0% for 2015, according to an announcement by the BC Residential Tenancy Branch.
This interest calculation is set annually. The rate has remained at 0.0% since 2009.
According to the Residential Tenancy Branch, a landlord must calculate the interest owing on the full amount of the tenant’s deposit before any deductions are made.
The interest is calculated from the date the tenant paid the deposit to the date the deposit will be returned to the tenant. Interest compounds on the anniversary of the date the deposit was received by the landlord.
Landlords are required to calculate the interest owing and provide the information to the tenant. Any interest is then paid along with the returned deposit.
To aid with this calculation, the Residential Tenancy Branch provides a deposit interest calculator on its website. This tool can be particularly useful for calculating interest for long term tenancies when the deposit interest rate has varied from year to year.
This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).
Click Here to Receive Landlord Credit Reports.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.