The security deposit, everybody wins

News - October 2, 2020

Last August, CORPIQ announced to its members that the legality of a security deposit had been recognized by the court.

Although it is still prohibited to require (demand), as a condition of the lease, any amount that may be retained by the landlord as security, the security deposit becomes a legal tool if it is part of the alternatives offered to the tenant. Indeed, article 1904 of the Civil Code of Québec does not prohibit the landlord from offering options from which a prospective tenant may freely choose.

The form designed by CORPIQ provides the possibility to choose one of the three security options offered to the refused candidate: a roommate, a natural person who will co-sign the lease as a surety or a security deposit.

Many landlords have been using security deposits for years. CORPIQ's form harmonizes the ways of doing so, in all legality. It can be used for new leases, but not for existing ones.

CORPIQ believes that the recognition of a security deposit will encourage tenants, who are moving out, to show more respect for the next tenant. In the absence of a deposit, one out of three leaves their unit in an unacceptable state, according to a Léger survey, much to the regret of tenants who are moving in.

CORPIQ also questioned tenants on July 1st about the idea of a security deposit. Here are some of the testimonials it gathered. (In French)

How do tenants react to the idea of a security deposit?

"We can see that there has been some neglect in terms of cleanliness. I think a deposit would have been a really good idea."