Returning Security Deposits

This section has to do with the return of the security deposit. For information on security deposits vs. application fees and deposit issues before moving in, see Application Fees & Security Deposits.

A landlord will typically ask you to pay a security deposit (or damage deposit) at the start of a tenancy. This deposit cannot be more than half of one month’s rent.

Landlords can only apply to keep a tenant’s security deposit for damages or unpaid rent. This includes unreturned keys.

If your landlord wants to keep your deposit, you must consent in writing, otherwise they have to apply to Residential Tenancies to keep it within 10 calendar days of the end of the tenancy. The landlord makes this application using a Form R. You must be served a copy of the Form R, a landlord cannot do this without telling you.

If they do not apply, the security deposit must be returned – even if there is damages to the unit. If a landlord wants any money over the amount of the deposit, they must get an Order from the Director to keep it. This can only be done by going to a hearing.

If the landlord doesn’t return your deposit, you haven’t agreed to let them keep it, and they haven’t filed to keep it within 10 days of the end of the tenancy, a tenant can file a Form S to have their deposit returned. They can also file this Form to challenge the landlord’s claim to the deposit.

Breakdown of Security Deposit Claim Process:

  • If a landlord files a Form R, and a tenant does not file a Form S, there will be no hearing and the landlord will get an order saying they can keep the deposit.

  • If a tenant files a Form S, and the landlord does not file a Form R, there will be no hearing and the tenant will get an order saying the landlord must return the deposit.

  • If a landlord files a Form R and a tenant files a Form S, there will be a hearing to decide who gets the deposit and how much. More information on this in Disputes & Resolutions.

You can also see our Resources for a template letter requesting the return of the security deposit, but we recommend just filing a Form S if 10 days have passed since you moved out.

Security deposits can’t be kept for what’s called “normal wear and tear”. Wear and tear is the normal amount that a unit would deteriorate over time with people living in it. The longer you’ve lived somewhere, the more wear and tear should be expected. More information on “wear and tear” is found under Previous Legal Decisions.

When a landlord returns a security deposit, they sometimes need to include interest. From 2013-Present, the rate of interest is 0%. If you paid your damage deposit before 2013, your deposit should have accumulated interest. Interest rates for earlier years are listed on the Residential Tenancies website.