Security Deposits

A guarantee of the security deposit by the Department of Community Resources meets the requirement for payment of the security deposit up to the amount of the guarantee. 

The maximum security deposit is one-month's rent.  

A security deposit can only be requested at the start of a lease unless the Department of Community Resources removes its security deposit guarantee. In this case a landlord may then request a security deposit from the tenant.  

A landlord cannot ask a tenant to agree to give up the security deposit until the end of the lease.  

One half the security deposit is to be paid on entering the agreement with the remainder to be paid two months later. 

The landlord must hold the security deposit in trust and in a trust account. 

A tenant cannot apply the security deposit towards rent unless the landlord agrees.  

At the end of the tenancy, interest as prescribed yearly (Interest Rates on Security Deposits), beginning from the date the full deposit is received, is to be paid to the tenant.  

At the end of the lease, the landlord has seven business days to either return the deposit and interest, have the tenants sign off on the deposit or make an application to the Office of Residential Tenancies to obtain an Order to retain the deposit and interest. 

If possible, a tenant will be notified of a claim against the deposit and may dispute the claim. In this case, a hearing will be arranged to determine the disposition of the deposit. At that time, the landlord will be requested to pay any deposit they hold into trust at the Office of Residential Tenancies. 

If there is no address available for the tenant, or the tenant does not reply to the claim, the landlord will receive an order to retain the deposit or access the guarantee. The tenant has 120 days to make a claim for the deposit. 

If the landlord does not follow the proper procedure in dealing with the deposit, an Order may be made against them, without any previous notice to them, ordering the deposit to be paid to the tenant. Until the deposit is paid, the landlord may not proceed with any claim against the tenant. 

A landlord may be excused from following the proper procedure if there are special circumstances. 

An order for the landlord to pay the deposit to the tenant may be enforced by directing another tenant to pay their rent to the tenant who is owed a deposit.