Security Deposit Rules & Penalties in New Brunswick

As a tenant in New Brunswick, understanding security deposit rules, penalties, and how to recover funds is important to protecting your rental rights. This guide explains common practices, what landlords may lawfully collect, timelines for returns, and practical steps to document and dispute deductions. It uses plain language to help renters and tenants navigate forms, official complaints, and hearings in New Brunswick, with clear examples of when to file an application or seek help from the province's residential tenancy services. Keep records, photos, and receipts and follow the timelines below to improve your chances of a full refund when you move out or if disputes arise.

What counts as a security deposit in New Brunswick?

Security deposits are amounts a landlord may ask for to cover unpaid rent, damage beyond normal wear and tear, or other breaches specified in the tenancy agreement. Landlords must follow the Residential Tenancies legislation and the rules set by the provincial tribunal when taking, holding, and returning deposits.^[1]

How much can a landlord require and how is it held?

Amount limits, interest rules, and holding requirements vary by province and are set in law and tribunal decisions. If your landlord requires a deposit, ask for a written receipt and a clause in the lease explaining how the deposit is stored and whether it earns interest. If the legislation requires interest or a specific handling method, the tribunal enforces those rules.^[1]

• Ask for a written receipt for every payment called a deposit or key fee.
• Keep dated photos and an inventory to show the unit's condition at move in and move out.
• Request the landlord's written policy on deposit refunds, including timelines and deductions.

When must the deposit be returned and common penalties?

Legislation and tribunal rules set timelines for returning deposits after the tenancy ends. If a landlord wrongfully withholds a deposit or fails to follow the statutory process, the tribunal can order repayment plus interest or penalties and may award additional amounts for bad faith. Use the tribunal application process to claim an overdue deposit or to dispute deductions.^[2]

How to challenge unfair deductions

Before applying to the tribunal, try these tenant-focused steps to resolve disputes informally or prepare a formal claim.

1. Contact the landlord in writing, request an itemized deduction list, and ask for receipts or quotes for repairs.
2. Gather evidence: dated photos, move-in inspection reports, receipts for cleaning or repairs you paid for, and witness statements if available.
3. Submit an application to the Residential Tenancies Tribunal if you cannot reach an agreement; official forms explain required evidence and fees.^[3]
4. Attend any hearing and present your documentation; the tribunal will evaluate whether deductions were reasonable and lawful.

Practical examples and common scenarios

Example: Cleaning and normal wear

If you professionally clean a carpet that had normal wear, the tribunal may rule the cost is not deductible from your deposit. If damage is beyond normal wear, document the damage and get a repair quote to compare with the landlord's claim.

Example: Late return of deposit

If a landlord does not return the deposit within the statutory timeline, file an application and include your lease, proof of move-out date, and any communications requesting the deposit back. The tribunal can order payment plus any required interest and may add penalties in some cases.^[2]

FAQ

Can a landlord keep my whole deposit for small scratches?

Not usually; landlords must show damage is beyond normal wear and tear and provide receipts or estimates for repairs to justify deductions.

How long will a tribunal hearing take?

Timelines vary; after you file an application the tribunal sets a hearing date and may take weeks to months depending on caseload and required evidence.

Do I need a lawyer to file with the tribunal?

No, many tenants represent themselves; bring clear evidence and follow the tribunal's filing instructions for the best chance of success.

How-To

1. Collect and organize all rental documents and photos showing the unit condition when you moved in and when you left.
2. Write to the landlord requesting an itemized list of deductions and give a reasonable deadline to respond.
3. If the landlord refuses or fails to respond, complete and file the tribunal application form with supporting evidence.^[3]
4. Attend the hearing, present your evidence clearly, and request a written decision explaining the tribunal's findings.
5. If the tribunal orders repayment, follow the decision instructions to collect the award or register it as an enforceable order if necessary.

Help and Support / Resources

• Residential Tenancies information at Government of New Brunswick
• Residential Tenancies Tribunal contacts and forms

1. [1] Residential Tenancies Act (New Brunswick)
2. [2] Residential Tenancies Tribunal (Government of New Brunswick)
3. [3] Application to the Residential Tenancies Tribunal (official form)