Rental deposits explained
Paying the deposit
The landlord may ask for a deposit before the tenant moves in, in the amount agreed (s5(3)(c)). Ask for a receipt that says it is a deposit (s5(3)(b)).
Where it must be kept
The landlord must invest the deposit in an interest-bearing account with a bank, at a rate not less than that bank's savings rate. The interest belongs to the tenant, and the tenant may ask for written proof of the interest earned at any time during the lease (s5(3)(d)). If the landlord is a registered estate agent (property practitioner), the deposit is held under the law for property practitioners' trust accounts instead.
The inspections
- Moving in: a joint inspection to list existing defects, attached to the lease (s5(3)(e), s5(7)).
- Moving out: a joint inspection within 3 days before the lease ends (s5(3)(f)).
- Tenant does not respond: the landlord inspects alone within 7 days after the lease ends (s5(3)(k)).
- Landlord skips the inspection: the dwelling is deemed in good repair and the full deposit plus interest is refundable (s5(3)(j)).
Use our inspection checklist and take dated photos.
What may be deducted
Amounts the tenant owes under the lease, including the reasonable cost of repairing damage caused during the tenancy and of replacing lost keys. Not fair wear and tear. Receipts for the costs must be available for the tenant to inspect (s5(3)(g), (h), (l) and (n)).
Refund deadlines
| Situation | Refund due | Section |
|---|---|---|
| Nothing owed | Deposit plus all interest, no deductions, within 7 days of the lease ending | 5(3)(i) |
| Amounts owed | The balance within 14 days of the dwelling being returned | 5(3)(g) |
| Tenant did not respond to the inspection request | The balance within 21 days of the lease ending | 5(3)(m) |
For example, for a lease ending on 31 January 2027, the deposit is due by 7 February 2027 if nothing is owed. The deposit calculator works out the interest and every date for you.
If the deposit is not paid back
Write to the landlord quoting the section and the deadline, and keep proof. If that fails, lodge a free complaint with your provincial Rental Housing Tribunal.
Frequently asked questions
Is there a maximum deposit?
The Act does not set a maximum. The deposit is whatever the parties agree before the tenant moves in (s5(3)(c)).
Can the landlord use the deposit for the last month's rent?
The Act treats the deposit as security that is applied at the end of the lease towards amounts owed (s5(3)(g)). Using it as the last month's rent is best agreed in writing first; otherwise unpaid rent is a breach of the lease.
What if the landlord never did an inspection?
If the landlord did not inspect with the tenant at the start or the end, the dwelling is deemed to be in good repair and the full deposit plus interest must be refunded (s5(3)(j)).