Couple who lost hundreds to landlord says Tenancies Act is unfair

A Nova Scotia couple is sending a warning to would-be renters that grey areasin the province's Residential Tenancies Act could end up costing them.

CBC News recently reported on another couplewho were asked to pay anapplication fee for a Halifax apartmenta practice that's illegal in the province.

Alison and KatrinaTheriaultsay they, too, were asked to pay up before signing a lease in Kings County in 2010 and their efforts to recoup themoney were ultimatelyquashed 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,toldapplication 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. Levyasked her for half a month's rent about $400 to hold the apartment while the application was processed, which she paid. She said shedid not sign a lease.

Alison Theriaultfilled out a separate applicationthe 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 inMoncton... 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 asktenants for money when applying to rent an apartment. Landlordscan 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 apartmentbefore signing a leasewas against the rules outlined inthe 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 andthat it was Alison Theriaultwho 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 Theriaultcase.

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."