How to Resolve Deposit Disputes in Nova Scotia Rentals

Maintenance & Repairs Nova Scotia published June 13, 2025 Flag of Nova Scotia

Security deposit disputes can be stressful for tenants, especially when moving out of a rental property in Nova Scotia. Understanding your rights and the correct steps to resolve a disagreement with your landlord is key to getting your deposit back fairly.

What Is a Security Deposit and What Are Tenant Rights in Nova Scotia?

In Nova Scotia, a security deposit is a sum paid by a tenant at the start of their tenancy to cover potential damages or unpaid rent at the end of the lease. By law, a security deposit cannot exceed half of one month's rent, and it must be held in trust by the landlord. At the end of the tenancy, landlords are required to return the deposit with interest, unless there are legitimate deductions for damages or arrears, under the Residential Tenancies Act of Nova Scotia.[1]

Tenants have a right to a written receipt for their deposit and the return of their funds (plus interest) if the rental unit is left in reasonable condition, considering normal wear and tear. For a deeper explanation, check Understanding Rental Deposits: What Tenants Need to Know.

Common Reasons for Deposit Disputes

Most disputes occur when landlords make deductions or fail to return the security deposit for reasons such as:

  • Unpaid rent or outstanding bills
  • Damage above normal wear and tear
  • Cleaning costs (if unit is left significantly dirty)
  • Failure to provide sufficient notice to terminate the lease

It's important to keep thorough records and receipts before, during, and at the end of your tenancy.

Preventing Deposit Disputes: Inspections and Documentation

One of the best ways to prevent a disagreement about your deposit is to conduct move-in and move-out inspections together with your landlord. Document the condition of the property with photos and checklists at both stages. Learn more about protecting your interests in the Guide to the Initial Rental Property Inspection for Tenants.

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How to Resolve a Deposit Dispute in Nova Scotia

If your landlord withholds your deposit in whole or in part, and you disagree with the reasons, Nova Scotia has a clear dispute process. Here are the main steps tenants should take:

1. Communicate with Your Landlord

Start by discussing the issue with your landlord directly. Be polite and provide documents such as inspection reports, cleaning receipts, and correspondence about the deposit. Many disputes can be resolved through open communication.

2. File an Application with the Nova Scotia Residential Tenancy Program

If you can't resolve the issue, you can file an Application to Director for dispute resolution.

  • Form Name: Application to Director (Form C)
  • When/How to Use: Use this form to request a formal decision if your landlord has withheld your security deposit unfairly. This form is filed with Service Nova Scotia's Residential Tenancy Program. You will need details of your tenancy, the amount claimed, and supporting documents. Submit promptly: You must apply within 10 days if you receive a Notice of Intention to Retain Security Deposit from your landlord.
  • Download Application to Director (Form C)
  • Official instructions and online service

The Nova Scotia Residential Tenancy Program is the official body overseeing deposit disputes, hearings, and orders for both landlords and tenants.

3. Attend Your Hearing

Once your application is accepted, you'll receive a hearing date where both you and your landlord can present evidence. The Director will issue a binding decision, which may require the landlord to pay back your security deposit with interest. For additional post-lease tips, see How to Get Your Security Deposit Back with Interest When Moving Out.

Important Tenancy Legislation

This law governs all rights and obligations regarding rental deposits in Nova Scotia.

Tip: Retain copies of all communications with your landlord, inspection records, and receipts. These documents are crucial if you need to apply for dispute resolution.

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For more details on your rights as a tenant in Nova Scotia, visit the page on Tenant Rights and Landlord Rights in Nova Scotia.

Frequently Asked Questions about Deposit Disputes in Nova Scotia

  1. When should my landlord return my security deposit?
    Landlords must return the security deposit with interest within 10 days after the tenancy ends, as long as there are no valid deductions for damages or unpaid rent.
  2. What can a landlord deduct from my security deposit?
    Legitimate deductions include unpaid rent, damages beyond normal wear and tear, and cleaning if the rental is left excessively dirty.
  3. What if my landlord does not return my security deposit?
    If communication fails, tenants can file an Application to Director (Form C) with the Nova Scotia Residential Tenancy Program for a binding decision.
  4. Can I claim interest on my deposit?
    Yes. Landlords must pay tenants interest on the security deposit at the rate set annually by the province.
  5. Is the dispute process expensive for tenants?
    No. Filing fees for the Application to Director are modest, and you may request a fee waiver if you cannot afford it. Always check the program website for current fees and eligibility.

Conclusion: Key Takeaways for Tenants

  • Know your rights: Security deposits are regulated by Nova Scotia law, and you are entitled to their return unless clear reasons exist.
  • Document your tenancy with inspections and receipts to prevent or support deposit claims.
  • If a dispute arises, use the official process with Form C to resolve the issue promptly and fairly.

Need Help? Resources for Tenants

  1. Residential Tenancies Act, Nova Scotia
  2. Nova Scotia Residential Tenancy Program – Application to Director (Form C)
  3. Service Nova Scotia: Residential Tenancies

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Bob Jones
Bob Jones

Editor & Researcher, Tenant Rights Canada

Bob writes and reviews tenant law content for various regions. They’re passionate about housing justice and simplifying legal protections for tenants everywhere.

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