All You Need to Know About Security Deposits

Many people wonder if security deposits are legal in the real estate industry. Hence, in this article, we will clarify and discuss these concerns.

First, a security deposit is the payment of a sum of money to a landlord. Indeed, as the name suggests, it provides a sense of security to a landlord. This deposit protects a landlord against damage and mishaps caused by a tenant. For example, such mishaps could be the lack of maintenance of the furniture and appliances, unpaid rents, intentional breakage, etc. The landlord keeps the deposit for the duration of occupancy.

Are Security Deposits Legal in Quebec?

Now, the burning question: is it legal for a landlord to ask for a security deposit?

Yes. Security deposits are legal. However, something that isĀ illegal is for the landlord to demand a deposit as a condition of renting the apartment.

In that sense, a landlord cannot require that a tenant provide an amount of money to rent the apartment. Still, a tenant can voluntarily pay a security deposit, if desired.

The Voluntary Security Deposit

In other words, a tenant can offer to pay a security deposit to their landlord. However, for the agreement to be valid, the tenant cannot be forced to pay this sum of money.

For example, after the unsatisfactory result of a credit check, the tenant can offer to pay a security deposit as a sign of confidence.

Again, this cannot be the only option for said tenant to get the apartment. The landlord can suggest other solutions to the tenant, so they can prove their reliability. In the event that the tenant voluntarily offers a security deposit instead of using an endorser or turning to other solutions, the security deposit is legal.

Managing Your Rental Process

Bail Expert is a great platform to manage the apartment rental process. Indeed, this software allows you to visualize all your vacant units; to post them on the best listing websites; to keep all your rental applications directly in the software; and to fill out a electronic lease, approved by the Tribunal administratif du logement, so your new tenant can electronically sign the lease.

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