If you’re renting in Alberta, understanding how security or damage deposits work is key to protecting your rights as a tenant. Alberta law sets specific rules for landlords when collecting, holding, and returning these deposits. This guide covers what you can expect, what’s legal, and what steps to take to ensure your deposit is handled fairly.

Are Damage Deposits Legal in Alberta?

Yes, in Alberta, landlords are allowed to ask tenants for a security deposit (commonly called a damage deposit) at the start of a rental agreement. The rules for these deposits are defined by the Residential Tenancies Act (Alberta).^[1]

• Maximum Amount: A landlord can request no more than one month’s rent as a security deposit.
• Timing: The deposit is usually paid when you sign the rental agreement, before moving in.
• Receipts: Landlords must give you a receipt for any deposit paid.

Security deposits are legal, but strict rules protect how they are collected and managed. These deposits cannot be increased during your tenancy.

How Must Landlords Handle Damage Deposits?

Landlords in Alberta must place your security deposit into a separate, interest-bearing trust account within two banking days. They must also:

• Pay you any interest earned, annually or when you move out (unless you agree in writing to let the interest build up)
• Hold the deposit until the end of your lease
• Give you a full or partial refund, minus legitimate deductions for damages or unpaid rent

You have the right to an itemized list explaining any deductions. Honest wear and tear (like worn carpet or faded paint) cannot be deducted.

Deposit Refunds: Timelines and Deductions

After you move out and return the keys, your landlord must refund your deposit (plus interest) within 10 days, unless there are legitimate deductions. If deductions are made, you should get an itemized statement within the same 10-day window, along with the balance of your deposit.

Reasons deposits may be legally withheld include:

• Outstanding rent or fees
• Excessive damage to the unit beyond normal wear and tear
• Unpaid utility charges that were your responsibility

If you disagree with the deductions, you can apply to the Residential Tenancy Dispute Resolution Service (RTDRS) — Alberta’s dedicated tribunal for tenant-landlord disputes.

Required Forms for Deposits in Alberta

• Inspection Report (Form not numbered): Alberta law requires both landlords and tenants to complete a written move-in and move-out inspection report. This helps determine if any damages occurred during your stay.
  Example: Before moving in, you and your landlord should go through the unit together. Record any existing damage (scratches, holes, stains) on the official inspection report form, and do the same when moving out. Both parties should keep a signed copy.

Inspection reports are your strongest protection when it comes to deposit deductions. Alberta does not use an official refund request form — communication is typically direct between landlord and tenant, or handled through the RTDRS if needed.

Tips for Tenants: Securing Your Deposit

• Always get a written receipt for your deposit
• Complete and keep copies of move-in and move-out inspection reports
• Communicate with your landlord in writing regarding the deposit refund
• Take photos of the property’s condition when you move in and out

Normal Wear and Tear vs. Damage

Landlords in Alberta can only deduct for damages that exceed what’s considered “normal wear and tear.” Examples of deduction-worthy damage include broken tiles, holes in walls, or missing keys. Faded paint and gently worn carpets count as normal wear and cannot be deducted from your deposit.

During the move-out process, many tenants find it helpful to reference How to Get Your Security Deposit Back with Interest When Moving Out for practical advice about the refund process and helpful reminders.

Disputing Deposit Deductions in Alberta

If you believe your landlord unfairly withheld part or all of your deposit, you can:

• Contact your landlord in writing to request a full explanation
• File a complaint or application with the Residential Tenancy Dispute Resolution Service (RTDRS)

You must provide your inspection reports, photos, and any written communication as evidence. Applying to the RTDRS is often faster and less formal than going to court.

For more details about the laws that protect your security deposit and other tenancy rights, refer to the official Tenant Rights and Landlord Rights in Alberta page.

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Frequently Asked Questions about Damage Deposits in Alberta

1. Can my landlord charge more than one month’s rent for a damage deposit?
   No. Under Alberta law, the security deposit cannot exceed one month’s rent.
2. Do I get interest on my damage deposit?
   Yes. Landlords must keep your deposit in an interest-bearing trust account and pay the interest to you annually or when you move out, unless you agree otherwise in writing.
3. What happens if my landlord doesn’t return my deposit in 10 days?
   If your landlord does not refund the deposit or provide an itemized list of deductions within 10 days, you can seek help from the RTDRS to recover your money.
4. Are move-in and move-out inspections mandatory?
   Yes. Alberta law requires landlords and tenants to complete written inspection reports at move-in and move-out. Failure to do so can affect your rights to claim or withhold deposit money.
5. Can deposits be increased during my tenancy?
   No. Once set at the beginning of your lease, the amount cannot be increased for the duration of that lease.

Key Takeaways for Alberta Tenants

• Landlords can ask for a maximum of one month’s rent as a deposit, following Alberta law.
• Deposits must be securely held in trust and returned (with interest) within 10 days of move-out, minus legal deductions.
• Always complete inspection reports and keep all documentation to protect your rights.

Following these tips helps ensure you are treated fairly and have the documentation you need if a dispute arises.

Need Help? Resources for Tenants

• Residential Tenancy Dispute Resolution Service (RTDRS): For deposit disputes and other rental issues
• Alberta Government: Information for Tenants
• Centre for Public Legal Education Alberta – Tenant Info

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1. Residential Tenancies Act (Alberta) - official legislation.
2. Residential Tenancy Dispute Resolution Service - Alberta's official tribunal.
3. Inspection Report Form (Alberta Government).

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