The Alberta Residential Tenancies Act (RTA) regulates the collection, holding, and return of security deposits.
A security deposit serves as a financial safeguard for landlords against property damage or unpaid rent.
How Long Can a Landlord Hold Your Security Deposit in Alberta?
When are Landlords Legally Obligated to Return Security Deposits?
According to Section 46 of the RTA, landlords are obligated to return the security deposit within 10 days after the tenant vacates the property.
The landlord must also provide a statement of account detailing any deductions made from the deposit for repairs or unpaid rent.
Source: Review the Entire Alberta Residential Tenancies Act (RTA)
Tenant’s Rights
Tenants have the right to initiate legal proceedings to recover the full amount of the deposit if the landlord fails to return it within the stipulated 10-day period, as per Section 46(3) of the RTA.
What can be deducted from the deposit?
- Damages to the residential premises, provided that inspection reports under section 19 have been met (Section 46(6)).
- Unpaid rent or other amounts owed under the conditions agreed to by the tenant (Section 46(2)(b)).
- Costs incurred for cleaning, repairs, or replacements, as long as these are not considered “normal wear and tear” (Section 46(5)).
It’s important to note that no deduction may be made for “normal wear and tear” to the residential premises during the period of the tenant’s tenancy (Section 46(5)).
Security Deposit Account Requirements
There should hopefully be no issues providing your deposit, as Section 44 of the RTA mandates that landlords must deposit each security deposit into an interest-bearing trust account in a financial institution in Alberta within two banking days after receiving it.
The landlord acts as the trustee of this account on behalf of the tenant. The money in this trust account is subject to the RTA and must be kept separate from the landlord’s personal funds.
This regulated account ensures that the security deposit should be readily available for return to the tenant, barring any legitimate deductions.
Best Practices for Tenants
To make sure you have kept up with your end of deal and cause less friction, here are some things you can do:
- Document the condition of the property before moving in and after moving out.
- Maintain written agreements and records of all payments and correspondence with the landlord.
Security Deposit Return Checklist
Here is a checklist to make sure you have done everything in your power to maintain your side of the agreement as a tenant:
Security Deposit Return Checklist
| Task | Description | ✅ |
|---|---|---|
| Document Property Condition | Take photos or videos of the property before moving out. | ☐ |
| Notify Landlord | Inform your landlord in writing about your move-out date. | ☐ |
| Clean the Property | Thoroughly clean the property, including appliances and fixtures. | ☐ |
| Return Keys | Return all keys, remotes, and access cards to the landlord. | ☐ |
| Final Walkthrough | Request a final walkthrough with the landlord and document it. | ☐ |
| Provide Forwarding Address | Give your landlord a forwarding address for the security deposit return. | ☐ |
In Summary
- The RTA mandates a 10-day period for the return of security deposits (Section 46).
- Tenants can take legal action if the deposit is not returned within this timeframe (Section 46(3)).
- Landlords are required to hold the security deposit in an interest-bearing trust account, ensuring its availability for return (Section 44).
- Reference the checklist we provided to help organize your side of the agreement as a tenant
