2025 RECA Property Management Comprehensive Practice Exam

The security deposit return process includes inspecting the unit and returning any balance after accounting for necessary deductions. This process is essential to ensure that the tenant is treated fairly and that the landlord can justify any deductions taken from the security deposit. When a tenant moves out, the property's condition must be assessed to identify any damage beyond normal wear and tear. Subsequently, any costs for repairs or cleaning can be deducted from the deposit, with the remaining amount returned to the tenant.

This approach protects both parties: it allows landlords to recover costs associated with repair or maintenance while ensuring tenants receive a fair return of their deposit if the property is left in good condition. The inspection and subsequent documentation form a key part of fulfilling legal obligations under tenancy regulations and ensuring transparency in the financial aspects of the rental agreement.