Security Deposit Interest Calculations

To easily calculate the value of your security deposit, CLICK HERE.

For annual interest rates and a description of how to calculate your security deposit interest, CLICK HERE.

What's in a Security Deposit

Amount

A landlord cannot charge more than one month's rent for a security deposit.

A landlord cannot increase the amount of a security deposit as the rent increases.

Trust Accounts

Landlords must deposit security deposits into an interest-bearing trust account within 2 banking days of receiving the deposit.

Landlords cannot deposit any other money into the trust account.

Interest

Landlords pay interest annually to the tenant. landlords and tenants can agree in writing that the interest on the security deposit be paid to the tenant on the termination of the tenancy. In this case, interest is compounded annually.

Deductions

A landlord can deduct from the security deposit for:

  • Significant damage to the premises, if the Accomodation Inspection Reports have been completed in accordance with the Residential Tenancies Act.
  • Any costs to return the premises to a reasonably clean condition.
  • Any arrears of rent.
  • Other liabilities of the tenant to the landlord.
  • Any other matters, agreed to in the Tenancy Agreement, which do not conflict with the right, benefits, or protection given to the tenant under the Residential Tenancies Act.

    • Return of Deposit

    If there are no deductions for cleaning or repairs, the landlord must pay the tenant the full deposit plus interest within 10 days of the day the tenant gave up possession of the premises.

    If there are deductions, the landlord must do one of two things within 10 days:

  • Return the balance of the deposit to the tenant with a statement of account that lists the damages and repair costs as well as detailed cleaning charges.
  • Give the tenant an estimate of the deductions to be made and return any money that won't be used. The tenant must receive a final statement of account within 30 days after the tenancy ends.

    • If a landlord fails to return all or part of a security deposit, the tenant may commence an action in court to recover part or all of the deposit.

    New Landlord's Obligations

    When the property of a landlord is purchased, the purchaser is responsible for the return of the security deposit.