Ask An Expert with Eric and Karen Peters

I recently had tenants move out and when I completed the inspection report I forgot to get the tenant to sign it (big mistake I know). However, I had indicated that I would send a copy via email to them. I didn’t interpret the Residential Tenancies Act correctly when it pertains to the inspection report as I realize now that it was supposed to be given to them forthwith. There were a number of areas of damage including a broken glass door and a moldy ceiling in the basement. I didn’t send their inspection report until a week later because I had been looking at the time frame for conducting the inspection. As it stands now I’ve been told that I would have to return the full deposit as I didn’t return the report to them in a timely manner. Is this correct or is there any recourse on my end? For reference I am located in Alberta.

It seems you realize that your problems are primarily of your own making, however, all is probably not lost.

1. Who told you that you now had to refund the entire deposit? Unless that came from a judge or RTDRS hearing officer, it should be ignored.
2. While it isn’t good that you failed to ask the tenants to sign the inspection, you can still ask them to do so. If they now decline, simply follow through with an unsigned inspection in the standard manner, presuming at least that you are using the approved inspection form rather than a do-it yourself form.
3. You have a week from the time a tenancy ends to complete the form. It sounds like you met that condition, including the delivery of it to the tenant. The statement of deposit use and returns should also be provided within one week, though in extenuating circumstances such as if you need to wait for quotes, it can be an estimate with the actual to follow later. Return of deposits should be done within the week if possible, or as soon thereafter as is feasible.

With regard to #1, it is my position that the statement is false. Having said that, sometimes judges and RTDRS hearing officers make statements that are contradictory to the Act, and become enforceable as if they were the Act. Unless you wish to pursue an appeal, that will probably not be worthwhile. Any other person making such a statement should be ignored and an orderly settlement of affairs pursued in an expedited fashion.

In the future:

• Use the approved form from Alberta Residential Landlord Association
• Always get it signed immediately or note their refusal
• Return a copy of the inspection report IMMEDIATELY after it is signed
• Make every effort possible to provide a statement of Use and Returns of the deposit within one week accompanied by the payment of that deposit. It is rare that you will not be able to do this if you are doing your job well.

Landlording is all about being systematic and thorough. Most traps we fall into are of our own making because we were lazy and skipped steps along the way. This is an opportunity to recognize the weaknesses in your systems and tighten things up. We all make mistakes, the question is, what do we learn? Do we fix it?

Eric and Karen Peters have been investing in multi-family properties since 2003. Eric has personally managed as many as 60 units at one time, mostly in less than the best areas of Edmonton. He has learned the rules well and knows most of the tricks and stories used by tenants to evade paying rent.

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