Couple who lost hundreds to landlord says Tenancies Act is unfair
Alison and Katrina Theriault gave $400 deposit for an apartment that landlord later said only 1 could live in
A Nova Scotia couple is sending a warning to would-be renters that grey areas in the province's Residential Tenancies Act could end up costing them.
CBC News recently reported on another couple who were asked to pay an application fee for a Halifax apartment — a practice that's illegal in the province.
Alison and Katrina Theriault say they, too, were asked to pay up before signing a lease in Kings County in 2010 and their efforts to recoup the money were ultimately quashed by a residential tenancies officer.
"It left a really bad taste in my mouth about the purpose [of the act]," said Alison Theriault, who still feels let down by the law meant to protect tenants and landlords.
"We're just still kind of ticked off about it."
Couple paid $400, told application was denied
In June 2010, the Theriaults were looking for an apartment in Kentville. They found a place on Nichols Avenue and spoke to the landlord, Brooks Levy, about their interest in renting the apartment.
Katrina Theriault returned the next day with her mother and completed an application for the apartment. Levy asked her for half a month's rent — about $400 — to hold the apartment while the application was processed, which she paid. She said she did not sign a lease.
Alison Theriault filled out a separate application the following day but as it was for the same apartment, she was not asked to pay anything up front. The day after that, Levy said her application was denied.
"He said that he had talked to my landlord in Moncton ... he said that she gave me a bad reference," Theriault said, adding that her landlord — a friend of hers — denied Levy's account of the conversation.
"It was a he-said-she-said situation."
Both Theriault and Levy said he initially offered to return half of the money.
"[Katrina] said that wasn't acceptable, she wants all of the money back because if he's not going to rent to us, it didn't seem fair that he would get to keep money from us. Theoretically he could have accepted 10 different $400 deposits from 10 different people and he decided not to rent from any of them and kept all of the money," Theriault said.
"From my understanding of it, he had no business collecting money from us without a lease."
Theriault said she called Service Nova Scotia and was told if the landlord decided not to rent to them, he couldn't keep the money.
Landlord defends own rules
The Residential Tenancies Act states landlords can't ask tenants for money when applying to rent an apartment. Landlords can ask for a damage or security deposit — no more than half a month's rent — but only after a lease is signed.
Levy said it wasn't his understanding that accepting payment to hold an apartment before signing a lease was against the rules outlined in the act.
"I didn't do anything illegal," he said. "If they don't think it's right, then they can go elsewhere. There's the door.
"I didn't check into it, but basically it's my rules and if they don't like it, they can find something else. I'm not going to sit on an apartment just on a word."
Loss of revenue cited as reason for verdict
Levy said he made it clear the deposit was non-refundable.
He also said he told Katrina Theriault she could stay in the apartment — and that it was Alison Theriault who was denied because of her reference.
"I missed a month's rent because it was her choice," he said. "She decided she didn't want it after me holding it for days. I was turning people away."
Alison Theriault said she was "shocked" when the tenancies officer sided with Levy because he had lost potential earnings.
'Grey area' in the act
"It didn't occur to me there was that much grey area in something like the tenancies act," she said.
Director of residential tenancies, Dean Johnston, said he could not comment specifically on the Theriault case.
Every year, the director receives 5,000 applications for mediation or a hearing. Of those, only 20 per cent come from tenants.
The majority of cases, said Johnston, are landlords seeking unpaid rent.
"Really what it comes down to is what exactly happened during this dispute," said Johnston. "So what are the facts about the dispute? What does either party say about it? What evidence do they bring?"
But Theriault said she feels the tenancies officers and the act are only looking out for the landlords.
"I feel the entire process is unfair to tenants."