Condominium owners in Alberta may be aware of the condominium governance regulations that were revised and came into effect at the beginning of this year. An experienced real estate lawyer can answer questions about the new rules. One of the revised regulations involves rental deposits that were formerly known as security deposits.
When a condominium owner rents out a unit, he or she might have to pay a rental deposit to the condominium corporation. This deposit covers maintenance, repairs or replacement of common property and corporation property. The corporation must hold the deposit, which cannot exceed one month’s rental or $1,000, in a trust. At the expiration date of the rental period, the deposit or the unused balance must be returned to the owner, including interest, if any was earned.
If the condominium corporation holds a $1,500 deposit of a unit that was rented out before the revised regulations that became effective on Jan.1, 2020, the corporation can hold the deposit throughout the remaining period of the rental agreement. The corporation must refund the deposit within 20 days from the date at which notice was given. A written statement that shows details of any money used, as well as the interest earned must accompany the refund.
To learn about all the intricacies of the revised condominium governance regulations, many condominium owners in Alberta consult with an experienced real estate lawyer. Along with the rental deposit regulations, legal counsel can explain other aspects, such as the requirements related to informing the corporation when the owner intends to rent out the unit. Along with the requirements of such a notice, the end of a tenancy of a rental unit must be reported to the corporation within a specified period.