Rent Deposits vs Security Deposits: Northwest Territories Law

Confused about rental deposits in the Northwest Territories? Understanding the differences between rent deposits and security deposits is crucial for tenants, especially when moving into a new home. Knowing what’s allowed, how much can be charged, and your rights can help you avoid disputes later.

What Kinds of Deposits Are Allowed in the Northwest Territories?

Under the Residential Tenancies Act (Northwest Territories), landlords can legally request a security deposit, which can sometimes be called a "damage deposit." Security deposits are designed to cover damages beyond normal wear and tear or unpaid rent at the end of your tenancy.

• Rent Deposits: In the Northwest Territories, landlords cannot charge an advance rent deposit separate from the security deposit. Only a security deposit is permitted by law.^[1]
• Security Deposits: This is the only deposit allowed and must not exceed one month’s rent or, for weekly tenancies, one week's rent.

Always get a receipt for any deposit paid and keep it with your rental records. For a broader overview of deposit rules in Canada, see Understanding Rental Deposits: What Tenants Need to Know.

Maximum Amount and Payment Rules

Landlords can ask for the security deposit at the start of the tenancy, but they cannot demand more than:

• One month’s rent for monthly leases
• One week’s rent for weekly leases

The security deposit must be placed in a trust account and returned with interest at the end of your tenancy, minus any valid deductions (such as unpaid rent or the cost to repair damage beyond normal wear and tear).

When and How Should Security Deposits Be Returned?

After you move out, your landlord must return your security deposit within 10 days, unless there is a dispute over damage or unpaid rent. If deductions are being made, you must receive an itemized list explaining the reasons and amounts kept.

To help ensure you get your deposit back:

• Provide written notice when moving out
• Attend the move-out inspection with your landlord
• Give your landlord your forwarding address in writing

Official Forms: Move-In and Move-Out Inspection Reports

Completing property inspections at both the start and end of your lease is required. These forms are crucial to protect your security deposit rights:

• Move-In Inspection Report (Form provided by the Residential Tenancies Officer)
  When/How to Use: Document the condition of the rental before moving in, with both landlord and tenant present. This is your main evidence for deposit disputes.
  Download from the NWT Rental Office
• Move-Out Inspection Report (Form provided by the Residential Tenancies Officer)
  When/How to Use: Complete immediately before or after moving out to compare with the move-in report. Ensures fairness in any deductions.
  Download from the NWT Rental Office

To learn what’s involved in inspections, read the Guide to the Initial Rental Property Inspection for Tenants.

Where to Get Help: Tenancy Disputes Over Deposits

If your landlord does not return your security deposit or you disagree with deductions, you can apply to the Office of the Rental Officer (Northwest Territories), which handles residential tenancy laws and disputes in the territory. Their process is designed to be tenant-friendly and doesn’t generally require a lawyer.

You cannot be asked to pay both a rent deposit and a security deposit in the Northwest Territories. Tenants are always entitled to interest on returned deposits, and landlords must follow all trust account rules.

For complete details on tenant rights, see Tenant Rights and Landlord Rights in Northwest Territories.

You can also explore Houseme for nationwide rental listings if you’re looking to move, comparing options and prices in the Northwest Territories and across Canada.

FAQ: Deposits in Northwest Territories Rentals

1. Can my landlord charge me both a rent deposit and a security deposit?
   No, only a single security deposit (damage deposit) is allowed, and it cannot exceed one month’s rent.
2. How soon should I get my security deposit back after moving out?
   Your landlord must return your deposit within 10 days after you move out, unless deductions are in dispute.
3. What can my landlord deduct from my deposit?
   Only for unpaid rent, damages beyond normal wear and tear, or missed utility charges if your lease specifies you are responsible for them.
4. What should I do if my landlord doesn’t return my deposit?
   Apply to the Office of the Rental Officer for help resolving the issue.

Key Takeaways for Tenants

• Only security (damage) deposits are legal in the Northwest Territories, not rent deposits.
• Deposits cannot exceed one month’s rent and must be kept in trust.
• File inspection reports and act fast if you need to dispute deposit issues.

Remember: Keeping good records and knowing your rights can help safeguard your money when renting.

Need Help? Resources for Tenants

• Office of the Rental Officer (NWT) – Tenancy forms, dispute resolution, and advice
• Official Tenant Forms & Guides – NWT Government
• Tenant Rights and Landlord Rights in Northwest Territories
• Local legal clinics and tenant advocacy groups can also assist with deposit and tenancy questions

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1. The Residential Tenancies Act (Northwest Territories): full legislation text
2. Office of the Rental Officer – forms and resources: official government page

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