Costs covered or not covered by a security deposit

The types of costs that may be covered by a Security Deposit Grant for emergency, transitional or contracted emergency housing include, but are not limited to, the actual and reasonable costs of:

• damage to the property, intentional or accidental, caused by the client and anyone staying with the client, including guests and
• loss relating to the client's failure to meet the supplier’s or provider’s rules of stay and
• unpaid client contributions (for transitional or contracted emergency housing only)

Damage covers any breakages or damages caused by the client, or anyone staying with the client, to the property, whether intentional or accidental, such as damage to walls, doors, curtains, or furnishings.

This may include damage to the room/unit the client is staying in, or other spaces and facilities such as a laundry room, hallways, etc.

Note damage does not include general wear and tear costs as this is included in the nightly rate for the room.

Any damage that the provider includes in a claim must be identified during the client's stay, or at the time the client completes their stay.

Loss covers the costs of losses relating to the failure of the client, or anyone staying with the client, to meet their obligations to the provider under the agreement for stay with the provider.

These costs for losses can include:

• cost of replacement items (e.g. furnishings or fittings) that the client, or anyone staying with the client, have removed from the room
• any excessive cleaning charges due to the room being left in an unacceptable state (this must be over and above the normal level of cleaning required)
• cost of replacement room key(s)

Sometimes a client may leave some of their belongings behind at their emergency accommodation (funded by an Emergency Housing Grant) after moving out.

This can result in a loss to the provider as they cannot sell the room or unit until the belongings are removed. This loss is generally also covered by the security deposit.

Methamphetamine testing

A security deposit cannot be used to cover the cost of methamphetamine testing.

However, if a positive test is returned and it can be directly linked to the client’s stay, the cost of cleaning and/or repairs required from that positive test may be covered.

A transitional or contracted emergency housing provider can make a claim under a Security Deposit Grant for any unpaid amount of a transitional housing contribution or contracted emergency housing contribution.

No claim can be made under a Security Deposit Grant for any unpaid emergency housing contribution, as this contribution is not paid to a supplier. MSD may recover an unpaid emergency housing contribution under its existing debt recovery process.

The security deposit cannot be used to cover costs that do not relate to the provision of the emergency, transitional or contracted emergency housing to the client, such as (but not limited to):

• telephone, internet, or pay-television charges
• mini bar
• laundry charges
• meal charges
• storage of excessive goods
• carparking
• utilities such as power or water charges
• methamphetamine testing
• general wear and tear

The security deposit also cannot be used to cover unpaid accommodation costs for emergency accommodation.

For any costs not covered by the security deposit, the supplier or provider needs to ask for reimbursement of the costs directly from the client (this may involve taking the client to the Disputes Tribunal) or seek compensation from their insurance company.