Landlord Retains Rent Deposit After Tenant Refuses to Move In: Gojacic v Manjunath 2021
Landlord retains rent deposit after tenant refuses to move into rental unit, LTB rules landlord properly mitigated losses
Summarized by RentZenLast updated: July 26, 2024
Case Summary
99 East 41st Street, Hamilton, ON L8T2Z8
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Agree with the ruling?
Timeline
Application Date
May 2020
Hearing Date
Sep 2021
Order Date
Oct 19, 2021
Dispute Summary
Tenant applied for an order determining that the Landlord collected or retained money illegally, including an illegal rent charge and failure to pay interest on the last month's rent deposit.
Determinations
- Tenancy agreement took effect on May 1, 2020 when Tenant took possession of the unit
- Tenant did not provide proper notice to terminate the tenancy
- Landlord took reasonable steps to mitigate losses by re-renting the unit
- Landlord was entitled to retain one month's rent as losses due to Tenant's breach
Case Study
The Tenant's allegations that the rental unit was unsafe and unhygienic on May 1, 2020 did not represent a fundamental breach of the agreement by the Landlord, as the Tenant failed to meet the burden of proof to establish the unit was uninhabitable. The Landlord immediately took steps to address the Tenant's concerns once they were raised. The Landlord mitigated his losses by re-renting the unit in a short period of time after the Tenant vacated.
Arguments and Actions
Landlord
Actions
Landlord cleaned the unit prior to May 1, 2020 and immediately arranged for pest control treatment when Tenant raised concerns. Landlord re-rented the unit for June 1, 2020 after Tenant refused to move in.
Tenant
Actions
Tenant refused to move into the rental unit on May 1, 2020 due to issues with cleanliness and pests, but later returned to show the unit to friends and family.
Decision Summary
The Tenant's application is dismissed. The Landlord took reasonable steps to address the Tenant's concerns and mitigate his losses when the Tenant refused to move in. The Landlord was entitled to retain one month's rent as losses due to the Tenant's breach of the tenancy agreement.
Adjudicator Details
LTB Member
Total Orders
312
Landlord Favorable
88.1%
Tenant Favorable
9.0%
Mutual Agreement
2.9%
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Financial Details
Rent Deposit
$1,995
Deposit Interest
$800
Source
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