10 Essential Rent & Deposit Facts for Newfoundland Tenants

Renting in Newfoundland and Labrador can feel stressful, especially if you're not sure about your rights when it comes to paying rent, deposits, or dealing with landlords. Understanding Newfoundland’s rental laws puts you in control and helps prevent issues down the road. This guide explains the essential facts every tenant needs to know about rent and deposits in Newfoundland and Labrador, plus practical steps to protect yourself.

Key Facts About Rent & Deposits in Newfoundland and Labrador

1. The Maximum Security Deposit Landlords Can Charge

Under Newfoundland’s Residential Tenancies Act, your landlord cannot ask for a security deposit higher than three-quarters of one month's rent. For example, if rent is $1,000, the maximum deposit is $750.¹

2. When and How Your Deposit Must Be Returned

After you move out, your landlord has 15 days to return your security deposit, unless you agree to use it for unpaid rent or repairs for damages outside normal wear and tear.

3. Deductions from Your Security Deposit

Your landlord may only deduct the following from your security deposit:

• Unpaid rent or utilities
• Repairs for damages beyond regular use
• Other agreed-upon amounts in the lease

Any deductions must be fair and reasonable. Learn more in Understanding Rental Deposits: What Tenants Need to Know.

4. Interest on Security Deposits

In Newfoundland and Labrador, landlords must pay tenants simple interest on the security deposit for each year it is held. The annual rate is set by the provincial government each year.

5. Paying and Receiving Rent: Methods and Receipts

Rent can be paid by cash, cheque, money order, or another agreed-upon method. Landlords must provide a rent receipt if you pay cash, and receipts are recommended for all payment types. For detailed advice, see Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

6. Rent Increases: How Much and How Often?

Landlords in Newfoundland and Labrador can only raise rent once every 12 months (for the same tenant). They must give at least three months’ written notice. There is no provincial cap on the amount, but rules apply to frequency and notice.

7. What Should Be in Your Lease

Your written or verbal lease should clearly state:

• Monthly rent amount and due date
• Deposit amount
• Tenant and landlord responsibilities
• Rules on rent increases and deposits

If there's any change to your lease, get it in writing to protect yourself.

8. Receiving a Rent or Deposit-Related Notice

If your landlord wants to:

• Increase your rent
• Retain your deposit for damages
• Terminate (end) the tenancy

They must give written notice. Always keep copies and respond within the required time if you want to dispute the change or deduction.

9. What if There’s a Dispute? Filing an Application

The Residential Tenancies Division, Service NL, handles all rental disputes. You can apply to recover your deposit or challenge a rent increase. Forms include:

• Form 6 - Notice of Application: Used to start any dispute resolution process with your landlord. For example, if your deposit isn’t returned, fill out Form 6 and submit it online or at a Service NL office. Access the form and instructions on the Service NL Residential Tenancies Division site.

10. Where to Get More Help

If you need further details, see the official Tenant Rights and Landlord Rights in Newfoundland and Labrador resource.

FAQ: Rent & Deposit Rules in Newfoundland and Labrador

1. How much security deposit can my landlord ask for?
   Your landlord can only ask for up to three-quarters of one month’s rent as a security deposit.
2. When will I get my security deposit back?
   Your landlord has 15 days after you move out to return your deposit, unless they’re claiming for valid reasons like unpaid rent or damage beyond normal wear and tear.
3. Can my landlord raise my rent any time?
   No. Rent can only be increased once every 12 months with at least three months' written notice.
4. Do I get interest on my security deposit?
   Yes, by law your landlord must pay you interest on your security deposit, calculated using the rate set each year by the provincial government.
5. What should I do if my landlord won’t return my deposit?
   File Form 6 with the Residential Tenancies Division to start a dispute. Keep all relevant documents, like your lease and move-out inspection report.

How To: Taking Action on Rent and Deposit Problems

1. How do I dispute an unfair deduction from my security deposit?
   Gather your lease, move-in and move-out inspection reports, and receipts. Complete Form 6 (Notice of Application) and submit it to the Residential Tenancies Division either in person or online. A hearing will be scheduled if unresolved.
2. How do I respond to a rent increase notice?
   Check your lease and ensure the landlord gave at least three months’ written notice. If not, contact the landlord in writing with your concerns, or apply to the Residential Tenancies Division for help if you need further support.
3. How do I properly end my tenancy?
   Give your landlord written notice as required by your lease (typically one month for monthly tenancies). Keep a copy, and arrange for a move-out inspection to avoid deposit disputes.

Key Takeaways for Newfoundland and Labrador Tenants

• Security deposits are limited and must be returned with interest, except for lawful deductions.
• Rent increases must follow strict notice rules—know your lease's terms and your rights.
• If you have disputes, use official forms and seek help from the Residential Tenancies Division promptly.

For more rental tips, Affordable homes for rent in Canada are available on Houseme.

Need Help? Resources for Tenants

• Residential Tenancies Division, Service NL (Official tribunal and dispute resolution body)
• Residential Tenancies Act (NL) (Full legislation)
• Tenant Rights and Landlord Rights in Newfoundland and Labrador (Key local facts and resources)
• Local tenant advocacy groups: Contact Service NL for referrals if you need personalized help

---

1. Residential Tenancies Act, NL: Read the full Act here
2. Residential Tenancies Division, Service NL: Official dispute resolution and forms

Categories

Tenant Rights & Responsibilities Rent & Deposits Leases & Agreements Moving In / Out Maintenance & Repairs Evictions Roommates & Shared Housing Discrimination & Accessibility Utilities & Services Affordable Housing & Subsidies Dispute Resolution & LTB Safety & Security Privacy & Entry by Landlord Special Tenancy Situations Tenant Insurance & Liability Post-Eviction Resources Landlord Compliance & Penalties Legal Precedents & Case Summaries Mental Health & Tenancy