Are Key Deposits Legal for Tenants in Northwest Territories?

As a tenant in the Northwest Territories, understanding your rights around rental deposits—including key deposits—is essential to avoid unnecessary fees or disputes with your landlord. The Residential Tenancies Act of the Northwest Territories and the guidance of the Office of the Rental Officer set clear rules on which deposits are legal and under what conditions they must be returned. This article breaks down your rights regarding key deposits, what to do if one is requested, and how to protect yourself as a tenant.

Key Deposits and the Law in the Northwest Territories

In the Northwest Territories, landlords may require a security deposit at the start of a tenancy, subject to specific limits and return rules under the Residential Tenancies Act (NWT)¹. However, separate key deposits are treated differently than general security deposits.

• Security deposits must not exceed one month’s rent and are meant to cover unpaid rent or damages to the rental unit beyond normal wear and tear.
• Key deposits are only permitted if they represent the actual cost of replacing a key or access device, and not as an extra security deposit.

If your landlord requests a key deposit, it should be a reasonable amount limited to the replacement value. The deposit must be fully refundable if you return all keys upon moving out.

When Are Key Deposits Allowed?

The Office of the Rental Officer—which oversees rental disputes in the Northwest Territories—emphasizes that key deposits cannot be used to supplement security deposits or as an extra charge. They must:

• Only cover the out-of-pocket cost of key (or fob) replacement
• Be returned promptly when you return all keys at the end of the tenancy
• Be outlined in your lease upfront, including the reason and the refundable nature

Security Deposits vs. Key Deposits

It’s important to distinguish between a security deposit—which is regulated, capped, and often held for the duration of your tenancy—and a key deposit for new or replacement keys. For more details about what is legally allowed, see Understanding Rental Deposits: What Tenants Need to Know.

Getting Your Deposit Back

When you move out, you must return all keys, fobs, and remote entry devices to your landlord in order to receive your deposit back. If you lose a key, the landlord can retain only the amount needed to replace it, not more.

Helpful Forms and How to Use Them

• Security Deposit Return Form (Form 4): Used when you want to apply for the return of your security deposit, including any key deposits, if not returned after your tenancy ends.
  Find the form on the Government of the Northwest Territories - Rental Officer Forms website.
  Example: If your landlord does not return your deposit within 10 days of the end of your tenancy (after you’ve given back your keys), fill out this form and submit it to the Office of the Rental Officer.

Where to Get Help with Deposit Disputes

The Office of the Rental Officer is the official tribunal for tenant-landlord disputes in Northwest Territories. They can help resolve issues about key deposits and other rental concerns.

Protecting Your Rights When You Move In and Move Out

To avoid disputes about keys or deposits, keep a record of:

• How many keys/fobs you received and their condition
• Written receipts for any deposits paid
• Any agreement in your lease about key or security deposits

Before moving out, make sure to return all keys and get written confirmation from your landlord. For more useful move-in and move-out tips, see Essential Tips for Tenants When Moving Into a New Rental Home.

Looking for a new rental? Find rental homes across Canada on Houseme.

If you’d like a summary of rights that apply to tenants and landlords throughout the territory, visit Tenant Rights and Landlord Rights in Northwest Territories.

Frequently Asked Questions

1. Can a landlord charge more than the replacement cost for a key deposit?
   No. A landlord in the Northwest Territories cannot charge more than the actual replacement cost, and must refund the key deposit if keys are returned in good condition.
2. What can I do if my landlord refuses to return my key deposit?
   If your landlord does not return your deposit within 10 days after you return your keys and move out, you can submit a Security Deposit Return Form (Form 4) to the Office of the Rental Officer for resolution.
3. Is a key deposit the same as a security deposit?
   No. A security deposit covers unpaid rent or damage, while a key deposit only covers the cost to replace keys and must be refunded when keys are returned.
4. Where can I get forms or more help with rental disputes?
   Forms and information are available through the Office of the Rental Officer website.
5. What should I do before moving out to ensure my deposit is returned?
   Return all keys, ensure your unit is in good condition, and get confirmation in writing from your landlord. This helps ensure a smooth return of deposits.

Key Takeaways for Tenants

• Key deposits in Northwest Territories must reflect only the replacement cost and cannot be used as additional security deposits.
• Always ask for a receipt and written agreement when paying any deposit.
• Know how to access the Rental Officer and official forms to resolve any disputes.

If you keep records and understand your rights, you greatly reduce the risk of disputes over deposits.

Need Help? Resources for Tenants

• Office of the Rental Officer (NWT) – For landlord-tenant disputes, official forms, and guidance
• Rental Officer Forms – Government of the Northwest Territories
• Residential Tenancies Act (NWT) – Full Legislation

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1. NWT Residential Tenancies Act: https://www.justice.gov.nt.ca/en/residential-tenancies-act/
2. Rental Officer – Government of NWT: https://www.justice.gov.nt.ca/en/residential-tenancy-dispute-office/
3. Rental Officer Forms – Government of NWT: https://www.justice.gov.nt.ca/en/rental-officer-forms/

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