Are Damage Deposits Allowed for Rentals in Yukon?

Renting a home in Yukon? Many tenants wonder if a landlord is allowed to ask for a damage deposit, how much it can be, and what happens to your money when the tenancy ends. Understanding your rights and your landlord’s responsibilities helps ensure a smooth rental experience.

Damage Deposits in Yukon: What You Need to Know

Yes, landlords in Yukon can ask for a damage deposit, sometimes also called a security deposit. These rules are set by the Landlord and Tenant Act (Yukon) and administered through the Yukon Residential Tenancies Office (official resource).

  • The damage deposit cannot exceed one month’s rent.
  • It can only be collected at the start of a new tenancy, not later.
  • The landlord must give you a receipt for the deposit.
  • The deposit must be placed in a trust account under the landlord’s name.

The rules in Yukon are designed to protect both parties. Deposits help cover unpaid rent or certain damages at the end of a tenancy, but landlords can’t use this money for regular maintenance.

What Counts as “Damage”?

Damage deposit deductions can only be made for tenant-caused damage beyond normal wear and tear. For example, broken windows or holes in walls may be covered, but faded paint or minor carpet wear is generally not.

The Rental Property Inspection Process

Before moving in, your landlord should offer a condition inspection. Attending this inspection, and taking notes or photos, is your best protection if there’s a disagreement about damage later. For more details on this step, see the Guide to the Initial Rental Property Inspection for Tenants.

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Returning Your Damage Deposit

When your tenancy ends, the landlord must return your deposit within 15 days, unless deductions are being made. If deductions are claimed, the landlord must provide a written statement outlining what was withheld and why.

  • If both you and the landlord agree, the deposit can be returned by mutual consent.
  • If you disagree with the proposed deduction, you can apply to the Residential Tenancies Office for dispute resolution.

If you’ve moved out and want to maximize the chance of a full refund, see How to Get Your Security Deposit Back with Interest When Moving Out.

Official Forms for Disputes and Deposits

  • Security Deposit Dispute Application (Form 7): Use this form if you disagree with a deduction or non-return of your deposit. Submit it to the Yukon Residential Tenancies Office.
    Practical example: If your landlord claims extra cleaning fees you think are unfair, file this form to start the dispute process.
    Download Form 7 (official site).

What Yukon Law Says About Damage Deposits

The rules come from the Landlord and Tenant Act of Yukon. You can review damage deposit regulations in Section 104: Deposits.

Tip: Always attend the initial and final inspections. Keep copies of all documents, emails, and photos to protect your rights as a tenant.

What to Do If You Have a Problem

If you feel your deposit is being unfairly withheld or deducted, your first step should be to negotiate in writing with your landlord. If that doesn’t resolve the issue, you can apply to the Residential Tenancies Office using the application above.

If you are new to renting in the territory, Understanding Rental Deposits: What Tenants Need to Know is a helpful resource for learning about different types of rental deposits and your rights.

FAQ: Yukon Damage Deposits

  1. Can my landlord ask for more than one damage deposit?
    No. In Yukon, landlords can only collect one damage deposit per tenancy, and it can’t be more than one month’s rent.
  2. Does my deposit earn interest?
    No. Unlike some provinces, Yukon law does not require landlords to pay interest on security or damage deposits.
  3. How long does my landlord have to return my deposit?
    Within 15 days after your tenancy ends, unless there is an unresolved claim or you agree to other arrangements.
  4. What if my landlord won’t return my deposit?
    You can apply to the Residential Tenancies Office using the Security Deposit Dispute Application to resolve the matter.
  5. What is considered normal wear and tear?
    Normal wear refers to expected deterioration—like worn carpets or paint—which isn’t covered by the damage deposit. Only tenant-caused damage can justify deductions.

Key Takeaways

  • Landlords can require a damage deposit of up to one month’s rent, taken at the start of a new tenancy only.
  • You have the right to an inspection and to challenge unfair deductions through the Residential Tenancies Office.
  • Keep documentation, photos, and receipts for best protection.

Looking for your next home? Find rental homes across Canada on Houseme and enjoy a transparent, tenant-friendly search experience.

For more details about your overall rights as a renter in this territory, visit Tenant Rights and Landlord Rights in Yukon.

Need Help? Resources for Tenants

  1. Yukon Landlord and Tenant Act: full text and summary
  2. Residential Tenancies Office (Yukon government): Apply or return a security deposit
  3. Forms and applications: Dispute Resolution Forms

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