Are Key Deposits Legal for Tenants in New Brunswick?

If you are a tenant in New Brunswick, you might be wondering whether your landlord can legally require a key deposit when you move into a rental unit. Understanding your rights around deposits is important for a smooth renting experience and to protect your finances. This article explains key deposit rules in New Brunswick, the relevant law, and what you should do if you're asked for any type of deposit beyond what's allowed.

Key Deposits in New Brunswick: What the Law Says

In New Brunswick, landlords are not permitted to ask for a key deposit in addition to the security deposit. The Residential Tenancies Act of New Brunswick outlines what types of deposits are legal and caps the total amount landlords can collect at the start of a tenancy.

• Only one deposit is allowed: Landlords may collect a security deposit before you move in, up to one week’s rent.
• Key deposits are NOT a separate legal charge: Requiring a key deposit on top of your allowed security deposit is not permitted under New Brunswick legislation.
• If a landlord includes a key deposit as part of your regular security deposit (not exceeding the one-week cap), it may be allowed but must be returned at the end of your tenancy if no keys are lost.

Tenants sometimes get confused about what types of deposits are legal. For a detailed explanation of all rental deposits, refer to Understanding Rental Deposits: What Tenants Need to Know.

How Security Deposits Work in New Brunswick

Your landlord can request a security deposit when you sign the lease, but the law is clear: the deposit, including any amount for keys, cannot be more than the equivalent of one week’s rent. This deposit must be placed with the Office of the Rentalsman, who holds it until the end of your tenancy.

• If you return all your keys and there is no damage beyond normal wear and tear, you should receive your full deposit back after the tenancy ends.
• If you lose a key, a fee for replacement may be deducted from your deposit when you move out.

Remember: Any deposit (key, security, or otherwise) must not exceed the maximum amount legally allowed, and your landlord can't demand additional separate fees for keys.

Forms and Processes: What Tenants Should Expect

At the start of your tenancy, your landlord should provide a written notice or use the official Security Deposit Form (Form 2), required under New Brunswick law. Here’s how it works:

• Form 2 – Security Deposit: This form acknowledges the amount of your deposit and that it has been paid to the Office of the Rentalsman. This protects both tenant and landlord.
  Find Form 2 and guidance from the Office of the Rentalsman.

When you move out, request your deposit back through the Office of the Rentalsman if there are no outstanding issues. Having a clear move-in and move-out process also helps. For more moving tips, see Essential Tips for Tenants When Moving Into a New Rental Home.

What If You Paid an Illegal Key Deposit?

If a landlord collects more than the maximum allowed deposit, or charges a separate key deposit improperly, you can file a complaint with the Office of the Rentalsman (the government body handling residential tenancies in New Brunswick). File a Tenant Application for Assistance (Form 3) to dispute improper deposits. Get Form 3 and instructions directly from the government website.

Your Rights and Further Reading

Knowing your rights about deposits keeps your relationship with your landlord professional and fair. For full legal details on tenant and landlord rights specific to your province, see Tenant Rights and Landlord Rights in New Brunswick.

For more practical guidance on daily responsibilities and move-in readiness, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

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Frequently Asked Questions about Key Deposits in New Brunswick

1. Can my landlord ask for both a security deposit and a separate key deposit in New Brunswick?
   No. Landlords are not allowed to collect separate key deposits. The total deposit, including any key-related amounts, cannot exceed one week’s rent.
2. What happens if I lose my rental keys?
   The cost to replace lost keys can be deducted from your security deposit, but only if it is reasonable and documented.
3. How do I get my security deposit back when moving out?
   The security deposit, held by the Office of the Rentalsman, will be refunded if you have met all your rental obligations, including returning all keys and leaving the unit in good condition.
4. Where do I file a complaint if a landlord asks for an illegal key deposit?
   File a complaint with the Office of the Rentalsman in New Brunswick and use Form 3 – Tenant Application for Assistance.
5. Does my landlord have to use the security deposit form?
   Yes, landlords must provide the proper documentation for security deposits, including the official Form 2 required by the province.

Key Takeaways for New Brunswick Tenants

• Landlords cannot charge a separate key deposit—only a security deposit of up to one week’s rent is legal.
• If you paid more than allowed, contact the Office of the Rentalsman and use Form 3 to dispute it.
• Return all your keys and clean your unit before moving to get your full deposit back.

Need Help? Resources for Tenants

• Office of the Rentalsman: Official support for tenancy law questions, complaints, and forms.
• Security Deposit Forms and Info: Access Forms and Guidance
• Read your rights: Tenant Rights and Landlord Rights in New Brunswick
• Explore best practices: Obligations of Landlords and Tenants: Rights and Responsibilities Explained

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1. Residential Tenancies Act of New Brunswick
2. Office of the Rentalsman (New Brunswick government resource)

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