Refundable Deposits And Payments For Damage

Refundable deposits may be required before reserving the service elevator for a move or when leasing a party room or a guest suite or, in some instances, for the use of the BBQ. Residents moving out may be requested to provide a certified cheque to prevent situations where a bank account does not have sufficient funds.

These deposits are returned in full after inspection of the facility used and adjacent corridors. If damage has occurred, the deposit is held until cleaning or repairs have been completed or costs estimated. The condo will then return the unused portion of the deposit.

For instance, when a guest spills wine or tomato juice on carpets or sheets and a lot of work is required to remove stains, then the cost is reimbursed from the security deposit. Or when a guest or a resident breaks objects or furniture, then they are charged for it—when the inspection can prove that they have done it.

Damage not paid for by a guest or tenant becomes an owner’s responsibility. It is, therefore, important that the concierge or the manager do a pre- and post-inspection to assess if any damage has occurred.

When residents damage a part of the common elements or fail to maintain their exclusive-use common elements (parking space, balcony, yard, fan coil), tenants or owners have to be duly notified in writing and given the opportunity to remedy the situation within a reasonable period of time. When this period expires, the corporation has to carry out the maintenance or the repairs if this maintenance is necessary to prevent deterioration or damage or injury to others. Owners are then charged for the costs. (Click here for Who Is Responsible for Maintenance, Repairs & Alterations?)

In large condos, a notice may be posted ahead of time announcing that oil stains in parking spaces have to be removed by residents or a fee will be levied if this has not been done by the time the power washing of the garages takes place. It is also a good idea to educate residents about the fact that automobile fluids, especially oil, damage water proofing membranes that cover the floor of parking areas. It is important to inform residents about the costs of replacing this membrane, which can be in the hundreds of thousands of dollars.

In times of digital cameras, managers may take a picture of each parking space that is stained with automotive oil as an additional proof for residents in the event that they contest the charge or refuse to comply.

Owners may try to recoup the costs incurred by tenants. But owners are ultimately responsible for such maintenance and damage. Were maintenance or repairs necessary to prevent injury, deterioration of corporation assets, or damage to other suites and common elements, and the sum not paid, it can appear on the status certificate and a lien procedure may be started. Owners generally pay all outstanding debts before selling because buyers’ lawyers will require it.