Key Deposit Rules for Nova Scotia Tenants: Legal Guide

As a tenant in Nova Scotia, you might be asked to provide a key deposit before you move into your new rental. But what does the law actually say about these deposits? Understanding your rights is essential to make sure you’re not overcharged and that you can get your deposit back when you move out. This guide outlines what is legal when it comes to key deposits and what both tenants and landlords need to know.

What Is a Key Deposit?

A key deposit is a sum of money a landlord may request to cover the cost of a lost or unreturned key. This deposit is different from a security deposit (sometimes called a damage deposit), which is held against unpaid rent or damages to the unit. Key deposits are typically refunded at the end of a tenancy if all keys are returned.

Are Key Deposits Legal in Nova Scotia?

Under the Residential Tenancies Act of Nova Scotia^[1], landlords are allowed to request a key deposit. However, the amount must be reasonable and cannot be more than the actual replacement cost of the key or key fob. For example, if a replacement key costs $15, that is the maximum that could be charged as a deposit.

• Key deposits must only cover the cost of replacement—not act as extra security deposits.
• Landlords cannot use the key deposit for general damage, cleaning, or unpaid rent.
• Key deposits are entirely separate from the regular security deposit. Learn more about the differences in Understanding Rental Deposits: What Tenants Need to Know.

Nova Scotia’s law is clear: landlords may not ask for any additional deposits beyond a one-month security deposit and reasonable key deposit(s).

When and How Key Deposits are Collected

Most landlords ask for the key deposit either when the lease is signed or when the tenant receives the keys. It's recommended to get a written receipt for every key deposit paid, including details about the amount, type of key, and replacement cost. This documentation can help you if there’s ever a dispute.

Getting Your Key Deposit Refunded

Tenants are entitled to receive their key deposit back when returning all keys at the end of the tenancy, as long as the keys are not lost or damaged. The landlord should refund the deposit within a reasonable time—usually at move-out, or shortly after.

To protect yourself:

• Return all keys (door, mailbox, garage, etc.) directly to your landlord or property manager
• Request a written confirmation or receipt for the return
• If you do not receive your deposit promptly, send a written request

If you only return some keys, the landlord may keep the portion of the deposit relating to the missing ones but must refund the rest.

Disputing a Withheld Key Deposit

If your landlord refuses to return your key deposit without reason or charges more than the actual replacement cost, you have options. The Residential Tenancies Program, administered by the Nova Scotia Residential Tenancies Program, handles disputes over deposits, including key deposits.

Applying for Resolution

To formally dispute withheld deposits, tenants use:

• Form J: Application to Director – Used when asking the Director of Residential Tenancies to order the return of a deposit or resolve disputes. Official Form J (PDF)

How does Form J work in practice? For example, if you returned all keys at move-out but the landlord refuses to refund your $50 key deposit, you would:

• Download and fill out Form J: Application to Director
• Describe the issue and include receipts or evidence
• Submit the form and required fee to the Residential Tenancies Program
• Attend or respond to the scheduled hearing

For tenants moving out, understanding the process for cleaning, damages, and key returns can help. See How to Get Your Security Deposit Back with Interest When Moving Out for more details about getting all your deposits refunded.

Other Important Deposit Rules for Nova Scotia Tenants

• The landlord may only collect one security deposit per tenancy—up to one month's rent
• All other deposits, fees, or prepayments (other than a reasonable key deposit) are not allowed by law
• Landlords must hold security deposits in trust

Learn more about Tenant Rights and Landlord Rights in Nova Scotia to ensure you know what is and isn’t permitted.

Key Takeaways for Tenants

• Landlords can require key deposits, but only for the actual cost of a lost or unreturned key/fob
• Key deposits must be refunded if all keys are returned
• Disputes about key deposits can be resolved through the Residential Tenancies Program

Whether you're moving in or moving out, staying informed protects your rights. If you’re looking for a new place, Find rental homes across Canada on Houseme and make your next move easier.

FAQ: Key Deposits for Nova Scotia Tenants

1. Can my landlord charge me more than the actual cost for a key deposit?
   No. By law, the key deposit must not exceed the cost of replacing the key or fob. Any excess amount is not permitted.
2. Do I get my key deposit back if I lose my key?
   If you lose your key, the landlord is entitled to keep an amount equal to the replacement cost from your deposit. If the key is returned, you should receive your full deposit back.
3. What should I do if my landlord refuses to return my key deposit?
   Request the refund in writing. If the landlord still will not return it, apply to the Residential Tenancies Program using Form J for dispute resolution.
4. Is a key deposit the same as a security deposit?
   No. Key deposits are strictly for lost/unreturned keys. Security deposits cover unpaid rent or damages, and different rules apply. Learn more in Understanding Rental Deposits: What Tenants Need to Know.

Need Help? Resources for Tenants

• Nova Scotia Residential Tenancies Program – Handles all tenant-landlord disputes, forms, and questions
• Residential Tenancies Regulations – Full regulations on deposits and key rules
• Dial 211 or visit your nearest Access Nova Scotia location for in-person tenancy support

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1. Residential Tenancies Act of Nova Scotia: Key deposit and security deposit guidelines.
2. Nova Scotia Residential Tenancies Program: Official forms and tenant support.
3. Residential Tenancies Regulations: Deposit and fee rules.

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