LD24-289

Tenant application · other. Outcome: partial. I. The Landlord shall pay the Tenant $2,321.49 by September 30, 2024.

Linked prior order: LR24-10

Order text

Orders of the Director of Residential Tenancy Dockets 24-445 and 24-446 September 10, 2024
INTRODUCTION
[1] The applicable legislation is the Residential Tenancy Act (the “Act”).
[2] On July 15, 2024, the Tenant filed a Form 2 (A) Tenant Application to Determine Dispute (the “Application”) with the Residential Tenancy Office (the “Rental Office”) seeking a monetary order for double the security deposit and pro-rated rent for moving out of the Rental Unit early. The Application was emailed to the Landlord.
[3] On July 25, 2024, the Rental Office emailed the parties notice of a teleconference hearing.
[4] On August 20, 2024, the Rental Office emailed the parties the evidence package.
[5] On August 22, 2024, a teleconference hearing was held before the Residential Tenancy Officer (the “Officer”). The Tenant and the Landlord participated at the hearing.
[6] During the hearing the parties agreed that the matter of the pro-rated rent had been resolved.
Therefore, the Officer does not need to make a determination regarding this matter.
ISSUE
i. Must the Landlord pay the Tenant double the security deposit?
SUMMARY OF EVIDENCE
[7] The Rental Unit is a single-family dwelling located in a four-plex. On May 1, 2020, the parties entered into a written fixed-term tenancy agreement which converted to a month-to-month agreement. Rent was $1,385.00 due on the first day of the month and a $1,385.00 security deposit was paid on May 1, 2020. The Tenant vacated the Rental Unit on June 27, 2024, and the tenancy ended.
Tenant’s Evidence and Submissions
[8] The Tenant’s evidence is summarized as follows.
[9] During the move out inspection, the parties observed that there was some damage to a wall in a laundry room. The next day the Landlord told the Tenant that the damage was more extensive then he thought. The Tenant did not agree with the Landlord’s extent of the damage and wanted a contractor to prepare an estimate.
[10] On June 30, 2024, the Tenant had a contractor assess the damage. The contractor stated the damage would be $450.00 to repair, but the Landlord did not agree and he stated more of the wall needed to be repaired. The Landlord told the Tenant that he wanted to get another contractor to assess the damage. The Tenant told the Landlord that he had two weeks to get a quote and file an application with the Rental Office if he was seeking to retain the security deposit.
[11] The Landlord notified the Tenant on August 1, 2024, that the Tenant’s contractor would be doing the repair work on August 6, 2024. The parties and the contractor attended the Rental Unit on August 6, 2024, and the Tenant and the Landlord still disagreed on the amount of work required.
The Tenant left the Rental Unit and no agreement was made on how much of the security deposit the Landlord could retain for damages.
[12] The Landlord waited a month to begin repairs and he did not file an application to retain the security deposit. The Tenant agreed the Landlord could retain $517.50 based on the work her contractor completed, if she receives double the security deposit. Photos of the damage and messages between the parties were submitted into evidence.

Orders of the Director of Residential Tenancy Dockets 24-445 and 24-446 September 10, 2024 Landlord’s Evidence and Submissions
[13] The Landlord’s evidence is summarized as follows.
[14] The parties did a walk-thru inspection before the Tenant moved out and they noticed some damage to a laundry room wall. The next day the Landlord noticed the damage to the wall was greater than he thought and he could smell dog urine in the area. The damage was in the same location the Tenant’s dog would urinate on dog pads.
[15] The Landlord wanted to get a second opinion after the Tenant’s contractor assessed the damage.
The Landlord contacted several contractors but he could not find anyone to perform the work. The Landlord contacted the Tenant’s contractor and they were able to do the initial repairs for $517.50.
When they did the work, the contractor found further damage inside the walls caused by the Tenant’s dog. The Landlord is currently waiting on a different contractor to submit a quote to finish the job. The Landlord disagreed with having to pay double the security deposit and stated he was trying to work with the Tenant.
Post Hearing Evidence and Submissions
[16] After the hearing the Landlord submitted additional evidence which included an invoice for $517.50 for the initial repairs, an email from the Landlord’s cleaner, and quote of $900.00 plus tax to finish the repairs. The Landlord’s evidence was sent to the Tenant.
[17] The Tenant responded to the Landlord’s submissions and stated that the quote of was too high.
The Tenant agreed to allow the Landlord to retain $517.50 for the initial repairs. The Tenant’s submission was sent to the Landlord. No further evidence was submitted.
ANALYSIS
[18] The Application is made in accordance with section 75 of the Act, and seeks a monetary order for double the security deposit pursuant to subsection 40(4) of the Act. The relevant law states:
40. Return of security deposit
(1). Except as provided in subsection (2) or (3), within 15 days after the date the tenancy ends or is assigned, the landlord shall either (a) issue payment, as provided in subsection (5), of any security deposit to the tenant with interest calculated in accordance with the regulations; or (b) make an application to the Director under section 75 claiming against the security deposit.
Landlord may retain amount from security deposit (2). A landlord may retain from a security deposit an amount that (a) the Director has previously ordered the tenant to pay to the landlord; and (b) remains unpaid at the end of the tenancy.
Retention by landlord, other circumstances (3). A landlord may retain an amount from a security deposit if (a) at the end of the tenancy, the tenant agrees in writing that the landlord may retain the amount to pay a liability or obligation of the tenant; or (b) after the end of the tenancy, the Director orders that the landlord may retain the amount.

Orders of the Director of Residential Tenancy Dockets 24-445 and 24-446 September 10, 2024 Consequences of non-compliance (4). Where a landlord does not comply with this section, the landlord (a) shall not make a claim against the security deposit; and (b) shall pay the tenant double the amount of the security deposit.
[19] In Order LR24-10, the Island Regulatory and Appeals Commission commented the following as it relates to section 40 of the Act and the consequences of non-compliance:
“Section 40 of the Act imposes strict requirements on a landlord and failure to meet those requirements incurs a very substantial penalty. The Commission notes that there is no provision in the Act to allow the Director or the Commission to temper or waive the provisions set out in section 40 of the Act. The Landlords feel that the application of section 40 to them, in these factual circumstances, is unjust. However, as the Act does not provide the Director or the Commission any discretion to waive the provisions of section 40, the Commission finds that there is no error in Order LD23-617 and accordingly the Commission dismisses the appeal and confirms Order LD23-617.”
[20] In this case, it is undisputed that the Tenant vacated the Rental Unit on June 27, 2024, and the tenancy ended. The Landlord had 15-days to either return the security deposit to the Tenant or file a Form 2 (B) Landlord Application to Determine Dispute with the Rental Office. The evidence establishes that the Landlord did neither. Therefore, the Officer finds that the Landlord did not comply with subsection 40(1) of the Act, triggering subsection 40(4) of the Act.
CONCLUSION
[21] The Application is allowed.
[22] The Officer finds that the Landlord must return the Tenant’s security deposit, plus interest, and pay the Tenant double the amount of the security deposit by the timeline below.
[23] Upon agreement by the Tenant, the Landlord may retain $517.50 of the security deposit.
[24] The Officer’s calculations are as follows:
Item Amount Security Deposit $1,385.00 Interest (May 1, 2020 – Sept. 10, 2024) $68.99 Security Deposit (Double Awarded) $1,385.00 Less Repairs ($517.50) Total Compensation Awarded to the Tenant $2,321.49
IT IS THEREFORE ORDERED THAT
I. The Landlord shall pay the Tenant $2,321.49 by September 30, 2024.
DATED at Charlottetown, Prince Edward Island, this 10th day of September, 2024.
(sgd.) Mitchell King Mitchell King Residential Tenancy Officer

Orders of the Director of Residential Tenancy Dockets 24-445 and 24-446 September 10, 2024
NOTICE
Right to Appeal
This Order can be appealed to the Island Regulatory and Appeals Commission (the “Commission”) by serving a Notice of Appeal with the Commission and every party to this Order within 20 days of this Order.
If a document is sent electronically after 5:00 p.m., it is considered received the next day that is not a holiday. If a document is sent by mail, it is considered served on the third day after mailing.
Filing with the Court
If no appeal has been made within the noted timelines, this Order can be filed with the Supreme Court of Prince Edward Island and enforced as if it were an order of the Court.