1. Why deposit disputes happen: the “Extinguishment” trap
Many landlords assume: “If the tenant damages the unit, I keep the deposit.” In British Columbia, that mindset creates avoidable losses. Deposit deductions are a process, not a feeling.
What “extinguishment” means (plain English)
Under the Residential Tenancy Act, if required condition inspection steps are not met, the landlord’s right to claim against the deposit for damage can be extinguished (void). That’s why inspection compliance is not optional.
2. The dispute-prevention checklist (what RTB expects to see)
The fastest way to avoid a deposit dispute is to remove ambiguity. Your goal is simple: both parties can look at the move-in baseline and agree what changed at move-out.
2.1 Communication standards (keep it calm, clear, and in writing)
- Confirm inspection offers in writing (email is ideal). Avoid “only text message” scheduling.
- Use neutral language: facts, dates, photos, and next steps (no accusations).
- Offer a pre-move-out walkthrough about 2 weeks before move-out to reduce surprises.
2.2 Documentation standards (make your file audit-ready)
- Photos: wide + close-up, same angles at move-in and move-out when possible.
- RTB-27 detail: measurements, locations, and descriptions (“3cm gouge on baseboard”).
- Receipts/quotes: only claim real costs you can prove (invoice, receipt, contractor quote).
- Service proof: keep email sent items, attachments, and delivery confirmations.
3. Move-In protocol (baseline that prevents disputes)
3.1 First principle: inspect when the unit is empty
The Regulation requires inspections when the unit is empty of the tenant’s possessions, unless both parties agree otherwise. This protects everyone — it prevents later arguments about what was “hidden.”
3.2 Scheduling: the two-opportunity rule (RTB-22)
You must attempt in good faith to mutually agree on a date/time. If the tenant is not available at the first offered time, you must propose a second opportunity by providing RTB-22 (approved form).
3.3 Conducting the inspection (RTB-27)
- Go room-by-room: walls, floors, windows, doors, appliances, plumbing fixtures.
- Write specific observations: “3cm gouge on hallway baseboard” beats “scratched.”
- Take wide photos + close-ups of any defect (date-stamped if possible).
- Both parties sign. If someone refuses, write “Refused to sign” and complete the report anyway.
3.4 Deadline: provide the copy within 7 days
The Regulation requires the landlord to give the tenant a copy of the signed move-in inspection report promptly and in any event within 7 days after the inspection is completed.
4. Move-Out protocol (prove what changed)
4.1 Compare to baseline (not to your memory)
- Bring the original move-in RTB-27 and compare line-by-line.
- Only claim new damage (not pre-existing, not wear and tear).
- Re-take photos using similar angles as the move-in photos when possible.
4.2 Scheduling again: two opportunities still apply
Use the same two-opportunity logic. If the first proposed time fails, provide the second opportunity using the approved notice form (RTB-22).
4.3 Deadline: provide the copy within 15 days (the “later of” rule)
The Regulation requires the landlord to give the tenant a copy of the signed move-out inspection report promptly and in any event within 15 days after the later of: (1) the date the move-out inspection is completed, and (2) the date the landlord receives the tenant’s forwarding address in writing.
4.4 Deposit deductions: consent or RTB order (don’t “just deduct”)
Even if damage exists, you generally cannot keep any of the deposit unless the tenant agrees in writing to the deduction or you obtain an RTB order. This is why good documentation + good communication saves time and money.
5. Wear and tear vs damage (Policy Guideline 1)
Most deposit disputes are not about what happened — they’re about classification: normal wear and tear (landlord cost) vs damage (tenant cost). Use Policy Guideline 1 as your framework.
| Item | Wear & Tear (Landlord Pays) | Damage (Tenant Pays) |
|---|---|---|
| Walls | Minor scuffs; small number of nail holes | Large holes (anchors); gouges; marker/crayon |
| Paint | Fading; aging; peeling due to age | Unauthorized repaint; heavy smoke staining; intentional marks |
| Floors | Worn traffic paths in carpet | Cigarette burns; pet urine stains; ripped linoleum |
| Cleaning | Reasonably clean | Heavy grease; mold in appliances; filthy oven |
| Blinds | Age-related wear | Torn slats; missing parts; pet chewing |
6. Useful life (depreciation) — Policy Guideline 40
Even when damage is proven, compensation is often reduced based on remaining useful life. The goal is not “brand new replacement” — it’s fair compensation for remaining value.
Simple depreciation example (illustrative only)
If an item has a 10-year useful life and it is already 8 years old at move-out, the remaining life is about 20%. A claim for full replacement is commonly reduced.
7. Failure points: common landlord mistakes
7.1 The “casual walkthrough”
Scenario: “Looks good” and keys are handed over. No RTB-27. No baseline.
7.2 The “text-only invite”
Scenario: One casual text offer. Tenant can’t attend. Landlord inspects alone without proper notice.
7.3 The “upgrade claim”
Scenario: Tenant damages an older item. Landlord claims full brand-new replacement cost.
7.4 The “late copy / no proof of service”
Scenario: Inspection is done, but the signed copy is delivered late (or you can’t prove delivery).
8. Top 20 common questions: inspections in BC
References & official sources
- Residential Tenancy Act (BC Laws)
https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/02078_01See: condition inspections (s. 23–24; s. 35–36), and security deposit handling / timelines (e.g., s. 38). - Residential Tenancy Regulation (BC Laws) — inspections (Part 3)
https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/10_477_2003See: empty unit (s. 14), scheduling window (s. 16), two opportunities (s. 17), copy deadlines (s. 18), evidentiary weight (s. 21). - RTB-27: Condition Inspection Report (Official Form PDF)
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/forms/rtb27.pdf - RTB-22: Notice of Final Opportunity to Schedule a Condition Inspection (Official Form PDF)
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/forms/rtb22.pdf - RTB Policy Guideline 17: Security Deposits and Set Off
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/policy-guidelines/gl17.pdf - RTB Policy Guideline 1: Responsibility for Residential Premises (wear vs damage)
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/policy-guidelines/gl01.pdf - RTB Policy Guideline 40: Useful Life
https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/policy-guidelines/gl40.pdf - TRAC: Condition Inspection Reports (plain-language)
https://tenants.bc.ca/your-tenancy/condition-inspection-reports/ - BC Gov: Tenancy forms directory
https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/calculators-and-resources/tenancy-forms