It is the first time since 2008 that property owners have been required to calculate the amount
For the first time in more than a decade, B.C. landlords will have to pay interest on their tenant’s damage deposits.
Since 2008, the prime interest rate has been below the 4.5% threshold, which meant landlords did not have to pay. However, with the recent rise in rates, renters can expect to receive 1.95% on their security and pet deposit in 2023.
“Interest is calculated based on the rate set at the beginning of each year,” the province stated on its website. “Interest is compounded on the anniversary of the date the deposit was received by the landlords.”
The last time landlords had to pay interest on damage deposits was in 2008, when the rate was 1.5%.
To find out how much interest is owed on a security or pet deposit, see the province’s deposit interest calculator.