Can Landlords Keep Your Deposit in Newfoundland and Labrador?

If you’re renting in Newfoundland and Labrador, understanding whether your landlord can keep your deposit is crucial for protecting your money and knowing your rights at the end of your tenancy. Security deposits are important, but so are the rules that govern them. This article walks you through how deposit returns work in this province, what the law says, and what to do if you don’t get your money back.

Security Deposits in Newfoundland and Labrador: The Basics

In Newfoundland and Labrador, landlords can request a security deposit (sometimes called a damage deposit) when you move in. By law, they cannot ask for more than three-quarters of one month’s rent, and the deposit must be placed in a trust account.^[1] The security deposit is meant to cover certain costs if you leave owing money or damage the unit beyond normal wear and tear.

For a full introduction to rental deposits and common situations, see Understanding Rental Deposits: What Tenants Need to Know.

When Can a Landlord Keep Your Deposit?

By law, your landlord can keep all or part of your deposit only to cover actual, proven costs such as:

• Unpaid rent or outstanding utility bills as specified in your lease
• Repairing damage caused by you or your guests (excluding normal wear and tear)
• Cleaning costs if the unit is not left reasonably clean

However, your landlord cannot deduct for routine repairs or upgrades, repainting from normal use, or costs not related to your tenancy.

How and When Should You Get Your Deposit Back?

Typically, your deposit should be returned to you within ten days of the end of your tenancy, unless the landlord makes a claim to keep it, in which case they must apply to the Residential Tenancies Office within 10 days.^[2]

• If the landlord does not make a claim or notify you of an application to keep your deposit, they must return the deposit in full.
• If the landlord applies to the Residential Tenancies Office, a hearing will decide if the landlord can keep any or all of your deposit.

If you believe deductions are unfair, you have the right to challenge your landlord’s application with the Office of Residential Tenancies (formerly Rentalsman’s Office), which handles disputes over deposits, repairs, and more.

Learn more about Tenant Rights and Landlord Rights in Newfoundland and Labrador for additional protections you have under provincial law.

What Is Considered "Normal Wear and Tear"?

Landlords can’t keep your deposit for normal use of the unit. Typical "wear and tear" means:

• Minor scuffs on walls and floors
• Faded paint
• Loose door handles or minor carpet wear

Tip: Take dated photos and complete a move-in/move-out inspection form with your landlord to avoid disputes about the state of the unit.

A full guide to inspection best practices is available at Guide to the Initial Rental Property Inspection for Tenants.

What Forms and Processes Matter for Deposits?

Key Deposit-Related Forms

• Application for Security Deposit Dispute (Form 12):
  When to use: If your landlord keeps your deposit or doesn’t return it within the legal time frame, you can use this application form to request a hearing.
  Where to find: Official Newfoundland and Labrador Residential Tenancies Forms (See Form 12).
  Example: If you left your unit clean and your landlord claims you owe for extra cleaning, file Form 12 to dispute this deduction.

What Happens If There’s a Dispute?

If either party disagrees over the return of a deposit, the Residential Tenancies Office will hold a hearing. Both landlord and tenant can present evidence (such as the move-in/move-out inspection report, photos, or communication records). A decision will then be made.^[3]

Practical Steps for Tenants

• Complete a move-in inspection and keep a signed copy
• Take photos when you move in and out
• Provide a forwarding address in writing when you leave
• Request your deposit in writing if it’s not returned on time

For a smooth rental experience and more advice on moving out, visit How to Get Your Security Deposit Back with Interest When Moving Out.

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1. Can a landlord keep my deposit for regular cleaning or repainting?
   Landlords cannot deduct from your deposit for normal cleaning or repainting unless there is excessive damage or soiling.
2. What if my landlord doesn’t return my deposit within 10 days?
   You can file an Application for Security Deposit Dispute (Form 12) with the Residential Tenancies Office to claim your deposit back.
3. Can I get my deposit back if I break my lease early?
   If you leave owing rent or haven’t fulfilled your obligations, the landlord may use your deposit to cover losses. Otherwise, you’re entitled to its return.
4. Where does my landlord have to keep my deposit?
   Your landlord must deposit your security deposit into a trust account until your tenancy ends or a dispute is resolved.
5. What if I disagree with the reasons my landlord gives for keeping the deposit?
   You have the right to dispute the claim through the Residential Tenancies Office with evidence such as inspection reports and photos.

Key Takeaways

• Landlords in Newfoundland and Labrador must follow strict rules for collecting, holding, and returning security deposits.
• You can dispute unfair deductions through the Residential Tenancies Office using the proper forms.
• Documenting the condition of your rental at move-in and move-out helps protect your rights.

In summary, understanding deposit rules and keeping proper records are your best tools for ensuring your deposit is returned fairly.

Need Help? Resources for Tenants

• Residential Tenancies Office (Newfoundland and Labrador): Official Tribunal Website — Get forms, guidance, and file disputes.
• Landlord and Tenant Information Line: 709-729-2608 (for tenants and landlords)
• Public Legal Information Association of NL (PLIAN): Free legal information and resources
• For more: See Tenant Rights and Landlord Rights in Newfoundland and Labrador

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1. Newfoundland and Labrador Residential Tenancies Act, full legislation text.
2. Residential Tenancies Office (NL): Deposit and return rules FAQ.
3. Residential Tenancies Dispute Process (NL): Overview at gov.nl.ca.

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