Key Deposit Rules for Tenants in Newfoundland and Labrador

If you’re renting a home or apartment in Newfoundland and Labrador, you might be asked by your landlord to provide a key deposit at move-in. Understanding whether key deposits are legal, how they work, and how they fit into your rights as a tenant is crucial. This article explains the key laws and practical steps, based on the Residential Tenancies Act and official provincial resources.

What Is a Key Deposit?

A key deposit is a sum of money that a landlord may ask for in exchange for providing you with keys to your rental unit. The stated purpose is to cover the cost of replacing keys or locks if the keys aren't returned at the end of your tenancy. It’s important to note that key deposits are different from security or damage deposits, which are regulated separately by provincial law.

Are Key Deposits Legal in Newfoundland and Labrador?

In Newfoundland and Labrador, landlords may request a key deposit. However, it must meet specific legal requirements:

• Amount Limitation: The key deposit cannot exceed the actual cost of replacing the key or, if the lock is changed, the reasonable cost of changing the lock.
• Not a Security Deposit: A key deposit cannot serve as a disguised security or damage deposit. The only deposit permitted by law is the security deposit, which cannot be more than three-quarters of one month's rent.
• Return Requirement: The landlord must return the key deposit promptly when you return all keys at the end of your tenancy.

These rules are set out in the Residential Tenancies Act (Newfoundland and Labrador)^[1] under Section 14(8) and Section 14(10).

What Happens If a Landlord Charges Too Much or Refuses to Refund?

If you believe your landlord has charged more than the actual replacement cost, or is refusing to return your key deposit when you move out, you have rights and recourse. Tenants can apply for dispute resolution through the Residential Tenancies Office. Keeping all receipts and documentation is vital.

How Does a Key Deposit Compare to Other Rental Deposits?

Key deposits and security deposits are often confused, but they have distinct rules. If you want to know more about permitted deposits, visit Understanding Rental Deposits: What Tenants Need to Know for a detailed breakdown.

Practical Example

Suppose your landlord asks for $100 as a key deposit but the cost to cut and program a replacement key is only $40. The landlord would only be entitled to keep $40 if you fail to return the key, and must refund the remainder. Any excess charge can be disputed.

Relevant Forms and How to Use Them

• Application for Dispute Resolution (Form 6): Use this form if your landlord refuses to refund your lawful key deposit.
  Download Form 6 from the Government of Newfoundland and Labrador.
  How to use: Fill in the details about your rental and the key deposit issue, attach your evidence (e.g., receipts, correspondence), and submit it to your nearest Residential Tenancies Office.

The governing body for rental disputes in this province is the Residential Tenancies Office of Newfoundland and Labrador.

Your Rights and Tips for Tenants

• Always request a written receipt for any deposit paid, including for keys.
• Keep documentation showing the cost of key replacement (e.g., locksmith invoice).
• Return all copies of keys at move-out to ensure full refund of your deposit.
• If there is a dispute, start by communicating in writing with your landlord.
• Apply for dispute resolution if your landlord fails to refund a legitimate deposit.

When and How to Apply for Recovery of Your Key Deposit

If a landlord refuses to return your key deposit after you have provided all keys, here’s what to do:

• Contact the landlord in writing and request the refund, citing the applicable law.
• If unresolved, complete Form 6 (Application for Dispute Resolution).
• Submit it to the Residential Tenancies Office, attaching copies of receipts and your correspondence.
• Attend the scheduled hearing by the Residential Tenancies Office, presenting your evidence.

Understanding your rights also helps you advocate for fair treatment throughout your tenancy. Learn more about your broader rights and responsibilities in the province at Tenant Rights and Landlord Rights in Newfoundland and Labrador.

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1. Can my landlord withhold my key deposit for wear and tear?
   No, the landlord can only use the key deposit to cover the actual cost to replace lost or unreturned keys (or to change locks if needed). It cannot be withheld for normal wear from using the keys.
2. Is there a maximum amount for a key deposit?
   Yes, the deposit must not be more than the replacement cost of the key or lock. Excess charges violate the law.
3. What should I do if my landlord won’t return my key deposit?
   First, ask in writing for its return, referencing the law. If there’s no response or the issue remains, submit Form 6 to the Residential Tenancies Office.
4. How do I prove I returned the keys?
   Always return keys in person and request a signed receipt from your landlord. If not possible, use a registered envelope or another trackable method.
5. Can the key deposit be deducted from my security deposit?
   No, the deposits are separate. Each must be handled according to the law and refunded independently if the conditions are met.

Conclusion: Key Takeaways for Tenants

• Key deposits in Newfoundland and Labrador are legal, but strictly regulated.
• Landlords can only charge the actual cost of replacement, and must return the deposit when keys are returned.
• Disputes can be resolved through the official Residential Tenancies Office using Form 6.

For full peace of mind, stay informed about all aspects of deposits and always keep records of what you pay and return.

Need Help? Resources for Tenants

• Residential Tenancies Office (Government of Newfoundland and Labrador): Help with dispute resolution, forms, and information.
• Access to Justice NL for legal aid and advice.
• For more about deposits and related issues, see Understanding Rental Deposits: What Tenants Need to Know.
• Comprehensive rights guide: Tenant Rights and Landlord Rights in Newfoundland and Labrador.

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1. Residential Tenancies Act (Newfoundland and Labrador)
2. Residential Tenancies Office: Government of Newfoundland and Labrador
3. Form 6: Application for Dispute Resolution

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