Can a Landlord Keep Your Deposit in Northwest Territories?

If you’re renting in the Northwest Territories, understanding what can happen to your security deposit is crucial for protecting your rights and your money. Navigating security deposits, repairs, and end-of-tenancy issues can feel overwhelming, especially if you’re unsure of the rules or face a dispute with your landlord. This guide offers tenants clear, up-to-date information grounded in official sources from the NWT Rental Office and covers your legal protections under the Residential Tenancies Act.

What Is a Security Deposit?

A security deposit (sometimes called "damage deposit") is an amount tenants pay at the start of a rental agreement. This deposit acts as financial protection for landlords if a tenant causes damage beyond normal wear and tear or fails to pay some rent. In the Northwest Territories, the deposit cannot be more than one month's rent and must be placed into an interest-earning trust account by your landlord.^[1] For more basics on deposits, read Understanding Rental Deposits: What Tenants Need to Know.

When Can a Landlord Keep Your Deposit?

By law, your landlord must return the deposit with interest unless they have a valid reason to keep some or all of it. Permitted reasons include:

• Unpaid rent at the end of your tenancy
• Unpaid utility bills if your agreement makes you responsible for those
• Repairs for damage you or your guests caused (that is not normal wear and tear)

Landlords cannot keep your deposit for regular maintenance costs, cleaning due to normal use, or to cover damage that isn’t the tenant’s fault.

What Counts as "Damage"?

"Damage" refers to harm caused beyond normal aging and usage, such as holes in walls, broken appliances due to misuse, or missing fixtures. Routine paint touch-ups or worn flooring typically do not count.

Security Deposit Return Timelines in Northwest Territories

After your tenancy ends and you return your keys, the law requires your landlord to provide a written statement of account and return the deposit within 10 days unless there’s a dispute.^[2] If they’re making deductions, they must include a statement explaining the reasons and the amounts.

End-of-Tenancy Inspection

Although not legally required, a move-out inspection—done when you return the unit—can help you and your landlord agree on its condition. Taking dated photos, keeping a checklist, and asking for written acknowledgment of the unit’s state can prevent disputes. Read the Guide to the Initial Rental Property Inspection for Tenants for tips on protecting yourself at both move-in and move-out.

Disputes: If You Think Your Deposit Was Unfairly Withheld

If you believe your landlord has kept your deposit unfairly or made unreasonable deductions, you have the right to formally dispute this through the NWT Rental Office. This independent tribunal resolves security deposit disputes under the Residential Tenancies Act (NWT).

• You can apply using Application to the Rental Officer (Form 1) if you want the Rental Officer to order the landlord to return your deposit.
  View and download Form 1 (Application to the Rental Officer)
• If you receive a notice from your landlord or want to make another tenancy-related claim, you may also need to use Form 1.

Related Rights and Resources

Security deposit concerns often go hand-in-hand with other issues, like responsibility for repairs. For an overview, see Routine Repairs in Rental Units: Tenant and Landlord Responsibilities. For a full snapshot of your protections, refer to Tenant Rights and Landlord Rights in Northwest Territories.

Recap: What Tenants Need to Watch For

• Landlords can only keep deposit funds for unpaid rent, unpaid utilities, or specific tenant-caused damages.
• The deposit must be returned with interest within 10 days of you leaving, unless there's a valid dispute.
• Tenants have the right to challenge any deductions by applying to the NWT Rental Office.

For more rental tips, or if you’re searching for a new place, browse apartments for rent in Canada on our trusted platform.

Frequently Asked Questions

1. How much can my landlord ask for as a security deposit in Northwest Territories?
   Landlords cannot request more than one month’s rent for the security deposit. The deposit must also be put into a trust account that earns interest until your tenancy ends.
2. Can my landlord keep my deposit for cleaning or routine maintenance?
   No, the landlord may not retain any part of the deposit for ordinary cleaning or normal wear and tear. Only damages exceeding regular use, unpaid rent, or unpaid utilities can be deducted.
3. What steps should I take if my landlord doesn’t return my full deposit?
   You should write to your landlord and ask for an explanation and immediate return. If not resolved, complete Form 1 (Application to the Rental Officer) and submit it to the NWT Rental Office to start a formal dispute.
4. What happens if there’s a disagreement about damages?
   The Rental Officer will review evidence from both parties—such as photos and inspection reports—and may order the deposit to be returned if the dispute is found in your favour.

Conclusion: Key Takeaways for Tenants

• Security deposits protect both tenant and landlord, but strict rules limit when deductions are allowed.
• In the Northwest Territories, you’re entitled to a quick return of your deposit—with interest—unless you owe rent or caused damages beyond normal use.
• If you feel your deposit is unfairly withheld, you have the right to apply to the NWT Rental Office for help and potential compensation.

Need Help? Resources for Tenants

• NWT Rental Office – Information, forms, and tenancy dispute resolution
• Department of Justice NWT: Residential Tenancies
• Residential Tenancies Act (NWT) – Full legal text
• Community Legal Aid – Free support and guidance for rental issues (call 867-920-6166 in Yellowknife)

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1. See: Residential Tenancies Act (NWT), section 14–18
2. See: Residential Tenancies Act (NWT), section 17

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