Moving out of a rental in Alberta? You’re likely wondering what happens to your security deposit. Understanding your rights regarding damage deposits is crucial to avoid losing money unfairly and ensuring a smooth transition. This tenant-focused guide explains why a landlord can—and cannot—keep your deposit in Alberta, what to expect, and how to protect your interests under current legislation.

What Is a Damage Deposit in Alberta?

In Alberta, a damage deposit (commonly called a security deposit) is an amount of money a landlord collects at the start of a tenancy. By law, this deposit can’t be more than one month's rent. The deposit protects the landlord from potential damages or unpaid rent when you move out, but you have rights on how it’s handled and returned.

For a helpful overview of deposit rules across Canada, visit Understanding Rental Deposits: What Tenants Need to Know.

Alberta Law: Who Holds the Deposit and Why?

In Alberta, landlords must place your deposit in a separate trust account within two banking days of receiving it. This rule is set out in the Residential Tenancies Act (RTA)¹. The deposit can never be used by the landlord for regular property maintenance during your tenancy.

When Can a Landlord Legally Keep Your Deposit?

Your landlord can only keep part or all of your deposit for very specific reasons, according to Alberta tenancy law. Common reasons include:

• Unpaid rent: If you owe rent when moving out, your landlord may deduct the amount from your deposit.
• Damages beyond normal wear and tear: If there are damages to the property that go beyond ordinary use (e.g., holes in walls, broken appliances), deductions can be made, but the landlord must prove these were caused by tenant action.
• Non-fulfillment of lease obligations: If you violate terms of your rental agreement resulting in costs to the landlord, allowable deductions may apply.

Important: Normal wear and tear (things like worn carpets or faded paint) cannot be deducted from your deposit.

Move-Out Inspection Requirements

Landlords must conduct both move-in and move-out inspections with you present, using the proper inspection report. If they fail to do this, they generally cannot lawfully keep any portion of your deposit, regardless of property condition.

Learn about inspections and what to expect in the Guide to the Initial Rental Property Inspection for Tenants.

How and When Should You Get Your Deposit Back?

• Timeline: Landlords have 10 days after your tenancy ends to return your deposit or provide a detailed written statement outlining any deductions.
• If deductions are made, documentation and receipts must be included.
• Interest on your deposit must be paid by the landlord, calculated annually at a legislated rate.

For more detail on recovering your deposit with interest, see How to Get Your Security Deposit Back with Interest When Moving Out.

Disputing Deposit Deductions: What Are Your Options?

If you disagree with deductions, first communicate directly—in writing—with your landlord and request a breakdown or refund. If unresolved, you have the right to apply to Alberta’s Residential Tenancy Dispute Resolution Service (RTDRS), or provincial court, for a resolution.

• Official Form: RTDRS Application Form (RTDRS 001)
• When to Use: If informal communication fails and you believe your deposit was unfairly withheld, use this form to start a claim.
• Access the form: RTDRS Application Form and Guide

What the Alberta Residential Tenancies Act Says

The main law governing deposits is the Residential Tenancies Act (RTA) of Alberta ¹. This legislation explains deposit limits, handling requirements, and return procedures. Read the full text of the RTA here.

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FAQ: Alberta Security Deposit Rules

1. How long does a landlord have to return my deposit in Alberta?
   Landlords must return the deposit or a written statement of deductions within 10 days after the tenancy ends.
2. Can my landlord keep my deposit for regular cleaning?
   No; deductions can only be for damages beyond normal wear and tear, not for routine cleaning that any tenant would do.
3. What if my landlord didn’t do a move-in inspection?
   If inspections were not done as required by law, your landlord may lose the right to keep your security deposit, even if damages exist.
4. What should I do if I believe deposit deductions are unfair?
   Write to your landlord to request an explanation. If not resolved, apply to the RTDRS or provincial court to dispute the deduction.
5. Do I get interest on my Alberta security deposit?
   Yes; landlords must pay annual interest on your deposit, regardless of whether they keep part of it for legitimate deductions.

Key Takeaways for Tenants

• Landlords can only keep deposits for unpaid rent or damages beyond normal wear and tear.
• Move-in and move-out inspections are essential for deposit protection.
• Tenants can dispute deposit claims through the RTDRS or courts.

In summary, understanding Alberta’s tenancy law helps ensure your deposit is returned quickly and fairly.

Need Help? Resources for Tenants

• Alberta Residential Tenancy Dispute Resolution Service (RTDRS): https://www.alberta.ca/residential-tenancy-dispute-resolution-service
• Service Alberta – Tenancy Information: https://www.alberta.ca/residential-tenancy-laws-and-rules
• Legal guidance and tenant advocacy: Centre for Public Legal Education Alberta (CPLEA): https://www.cplea.ca/
• For a full overview, see Tenant Rights and Landlord Rights in Alberta

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1. Residential Tenancies Act, RSA 2000, c R-17.1
2. Residential Tenancy Dispute Resolution Service (RTDRS) – Government of Alberta
3. Residential Tenancy Laws and Rules – Service Alberta

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