Landlord to refund damage deposit to tenant who never took possession 

June 16,2025

RED FM News Desk

The B.C. Civil Resolution Tribunal has ruled that a landlord must return a $550 damage deposit to a tenant who decided not to move in. The tenant, Kieran Ryckman-Harding, paid the deposit after agreeing to rent a room, but changed his mind the next day and requested a refund, which landlord Harold Markus refused. 

The tribunal found there was no legal basis to withhold the deposit, noting that the receipt simply labeled it as a “damage deposit” with no terms about forfeiture or notice. The tribunal clarified that such a deposit is meant to cover potential property damage during a tenancy, not unpaid rent, especially since no damage occurred and the tenant never moved in. Markus claimed in his submissions that once a “security deposit” is paid, a tenancy is officially established, and the deposit can be applied to cover any unpaid rent. However, Tribunal member Christopher Rivers pointed out that both parties referred to the payment as a “damage deposit” — not a “security deposit” — in the receipt and throughout their submissions. 

As a result, the landlord was ordered to repay the deposit along with $36.67 in interest and $125 in tribunal fees.