• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Phone: (604) 605-3335  Toll Free: (888) 850-6585

 

 

Boale, Wood and Company

Boale, Wood and Company

Licensed Insolvency Trustee

  • Our Company
    • Why Use Us
    • David Wood
  • Solutions
    • Personal Solutions
      • Alternatives to Bankruptcy
      • Consumer Proposal
      • Consumer Proposal vs. Debt Management Program
      • Division 1 Proposal
      • Personal Bankruptcy
      • Proposal Comparison
    • Corporate Solutions
      • Bankruptcy
      • Debt Restructuring
      • Informal Workouts
      • Creditor Proposal
      • Receiverships
      • Liquidator Strata Wind Ups
      • Court Appointed Administrators
  • Resources
    • Forms
    • Newsletter
      • Newsletter Archive
    • Social Media
    • Media
    • FAQ
    • Articles
    • CAIRP
    • Privacy Policy
  • Blog
  • Ask a Trustee
    • Submit your Question
  • Contact Us
    • Free Initial Consultation
    • Vancouver Office
    • Surrey Office
    • Yukon Territory

Insolvency & Rental Property Management: Recommendations

May 9, 2007 by admin Leave a Comment

As a matter of practicality and with the concurrence of the lender, it is good practice for the Receiver to honor the deposits for a variety of reasons:

1. If you don’t honor the deposit and you tell the tenant, they will withhold at least half a month’s rent when they vacate the property. This will leave you with no recourse against the tenant for any damage they do to the property and it could be very costly.

2. Tenants who subsequently vacate will also hold back at least one half months rent creating a ripple effect.

3. Future tenants will be reluctant to rent in the building if they think they will not receive their damage deposit back.

4. A prudent purchaser of the property will insist on an adjustment being made to the purchase price to account for the future liability.

Considerations in dealing with the Security deposits are:

1. Determine what the extent of the liability is and advise the lender.

2. Obtain their concurrence on paying out the deposit in accordance with the RTA.

3. Advise the Tenants in writing that all security deposits will be honored and paid out in accordance with the sections of the RTA.

4. Contact the former owner and request an accounting of the deposits and the funds.

5. Keep future security deposits in a separate trust account.

For more information contact the trustees from Boale Wood and Co.

Blog Insolvency,  landlord and tenant

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Call Us Now

Phone: (604) 605-3335
Toll Free: (888) 850-6585
or use the Contact Form

We have offices located in Vancouver and Surrey.  We also provide services to residents and businesses in the Yukon Territory.

 

Looking for Forms?

We have a number of forms available for download here.

Footer

  • Email
  • Facebook
  • LinkedIn
  • Twitter