Security and pet deposits

Security deposits

Landlords can ask a tenant to pay a security deposit at the start of a tenancy. It's also known as a damage deposit.

The security deposit amount can be up to the amount of 1 month’s rent under the tenancy agreement. Exceptions apply to weekly tenancies.

Landlords can only request 1 security deposit per tenancy agreement. They cannot ask for another deposit if more people move in.

Tenants must have a landlord's written consent to use a security deposit as last month's rent.

Pet damage deposit

The Residential Tenancies Act allows a landlord to ask for a pet damage deposit if a tenant has a pet.

A pet damage deposit is money paid by the tenant to the landlord that is held as a security for any damage to the property caused by a pet. Landlords can ask a tenant to pay a pet damage deposit:

• at the start of a tenancy; or
• when a tenant gets a pet during a tenancy.

The landlord can:

• collect only 1 pet damage deposit, even if a landlord agrees that a tenant can have multiple pets; and
• request a pet damage deposit of up to half of 1 month's rent.

A landlord cannot ask for a pet damage deposit if they've already allowed the tenant to have a pet.

Any restrictions on pets in a tenancy agreement are subject to the Human Rights Act.

Interest on deposits

The security and pet damage deposits accrue interest during the tenancy.

Landlords must calculate the interest owing on the full deposit regardless of any deductions they wish to make.

The Security Deposit Interest Rates table shows the interest to be paid on the security deposit for each time period. The interest is not compounded; it's calculated for each time period.

Online interest calculator

We created the online interest calculator to help you calculate interest.

Landlord and tenant responsibilities

Tenants 

You must:

• pay deposits within 30 days of when they're due under the tenancy agreement;
• not use the security deposit as rent without your landlord's written permission;
• participate in the condition inspections with your landlord at the beginning and end of the tenancy; you may appoint an agent to participate on your behalf if you tell your landlord in advance; and
• provide your landlord with a forwarding address or e-transfer information in writing at the end of the tenancy to have your deposits returned.

Landlords

You:

• can only request 1 security deposit per tenancy agreement;
• can serve a 14-day notice to end tenancy for cause if a tenant fails to pay the deposit within 30 days of when it’s due under the tenancy agreement;
• cannot increase the amount of the security deposit with a rent increase;
• must inspect the condition of the rental unit at the beginning and end of the tenancy and must provide the tenant with at least 2 good faith opportunities to participate in the inspection;
• must sign and have the tenant sign the condition inspection reports and provide the tenant with a copy of the signed reports; and

You must repay the security deposit with interest to the tenant within 15 days of whichever date is later:

• The date the tenancy ends
• The date the landlord receives the tenant's forwarding address or e-transfer information in writing

If a tenant and landlord agree in writing, a landlord can withhold some or all of the deposit. If they do not agree, the landlord can apply for dispute resolution at the Residential Tenancies Office.

Fact sheets

• View the Deposits fact sheet.

For more information

View the:

• Residential Tenancies Act
• Residential Tenancies Regulation
• Residential Tenancies Rent Index Regulation