Newfoundland and Labrador Damage Deposit Rules for Tenants

Many tenants in Newfoundland and Labrador wonder if a landlord can legally ask for a damage deposit before moving in. Understanding these rules helps protect your finances and ensures you’re not unfairly charged during or after your tenancy. This article explains how damage and security deposits work, what landlords can (and cannot) request, and where to get official help if concerns arise.

Can a Landlord Request a Damage Deposit in Newfoundland and Labrador?

In Newfoundland and Labrador, landlords are permitted to ask for a security deposit, often called a damage deposit. However, strict rules apply to the amount and how the deposit is handled under the Residential Tenancies Act (NL)^[1].

• Maximum deposit amount: Landlords may not request more than three-quarters of one month's rent (75%).
• No additional deposits allowed: No other fees or deposits (such as key or pet deposits) are permitted in addition to the maximum security deposit.
• When to pay: The deposit is usually paid when the rental agreement is signed, before moving in.

The deposit is intended to cover certain damages or unpaid rent, but not for routine cleaning or regular wear and tear. If your security deposit is more than allowed by law, you can ask your landlord to refund the extra amount immediately.

How Deposits are Held and Returned

Landlords must deposit your security deposit in a trust account within two business days. At the end of your tenancy, you are entitled to receive your deposit back (plus any interest, as set by regulation), minus allowable deductions—if you’ve met all obligations.

Learn more about the basics of deposits in Understanding Rental Deposits: What Tenants Need to Know.

When and How Is the Damage Deposit Returned?

After your tenancy ends, landlords have 10 days to return your security deposit with interest, unless you both agree in writing to another arrangement or unless there is a dispute about potential deductions.

• If there is no damage (other than normal wear and tear) and you have paid all rent, you should receive your full deposit plus interest.
• If the landlord claims damages, unpaid rent, or other allowable deductions, they must apply to the Residential Tenancies Board for permission to keep some or all of your deposit.

If a dispute arises over the deposit, you can begin a claim process with the provincial tribunal (see steps below). For more on preparing for a move-out and securing your deposit refund, check out How to Get Your Security Deposit Back with Interest When Moving Out.

Official Forms and the Residential Tenancies Board

The Residential Tenancies Board of Newfoundland and Labrador oversees landlord and tenant matters, including security deposit disputes.

If you feel your deposit has not been returned properly, you may need to use specific forms such as:

• Application for Return of Security Deposit (Form 6): Use this form if your landlord does not return your deposit within 10 days after your tenancy ends.
  Download Form 6 – Application for Return of Security Deposit (PDF)
  Example: A tenant moves out and their landlord withholds the deposit without explanation. The tenant can fill out Form 6 to request a tribunal hearing for a decision.

Common Issues and Tenant Protections

Disputes most often arise over what counts as “damage” versus normal wear and tear. To protect yourself:

• Inspect the unit with your landlord at move-in and record any existing damage.
• Use photos and an inspection checklist. See our Guide to the Initial Rental Property Inspection for Tenants for a step-by-step process.
• Keep records of all communications and receipts for rent and repairs.

If you want more details about local rights and responsibilities, visit Tenant Rights and Landlord Rights in Newfoundland and Labrador.

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1. Can landlords in Newfoundland and Labrador ask for any deposit they want?
   No, landlords can only request a maximum security deposit equal to 75% of one month’s rent. They cannot require separate damage, key, or pet deposits.
2. How do I get my deposit back when I move out?
   Landlords must return your deposit (plus interest) within 10 days after the tenancy ends, unless you agree otherwise or there’s a dispute. If not returned, you can file Form 6 with the Board.
3. What can a landlord deduct from my deposit?
   Deductions are only allowed for unpaid rent, utility charges you’ve agreed to pay, or damages beyond normal wear and tear.
4. Where is my deposit held during my tenancy?
   By law, your landlord must place your security deposit in a trust account within two business days of receiving it.
5. What if my deposit wasn’t returned and I can’t reach my landlord?
   If the landlord is unreachable or refuses to return the deposit, you can submit an application to the Residential Tenancies Board for a decision.

Key Takeaways for Tenants

• Landlords in Newfoundland and Labrador can ask for a security deposit up to 75% of one month’s rent—no more.
• Your deposit must be held securely and returned (with interest) after you move out, minus allowable deductions.
• If your rights are violated, official forms and the Rental Board provide a clear route to resolve issues.

In summary, knowing your rights about damage deposits will help protect you, your money, and ensure a fair tenancy experience.

Need Help? Resources for Tenants

• Residential Tenancies Board of Newfoundland and Labrador: Tribunal overseeing tenant-landlord matters and deposit disputes.
• Official provincial tenancy forms: Including Security Deposit Return Application (Form 6).
• Newfoundland and Labrador Housing Corporation: Support for rental housing queries and tenant services.
• Learn more about your legal protections at Tenant Rights and Landlord Rights in Newfoundland and Labrador.

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1. Residential Tenancies Act, SNL 2018, c. R-14.1 (Newfoundland and Labrador)

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