The landlord must pay the tenant interest on the rent deposit every 12 months. The percent interest is the same as the rent increase guideline that is in effect when the interest payment is due. The guideline is set each year by the Ministry of Housing.

If the landlord does not pay the interest owed to the tenant when it is due, the tenant can:

• deduct the interest from a future rent payment, or
• file a Tenant Application for a Rebate

Instead of paying the tenant the interest, the landlord can reduce the amount needed to update the rent deposit (so that it equals the current rent) by the amount of interest owed.