What is a security deposit and how can I get it back after the rental?

What is a security deposit?

A security deposit is an amount of money that a tenant pays to the landlord before starting a lease. This deposit serves as a guarantee for the landlord that the tenant will fulfill their financial and contractual obligations: pay the rent on time, not cause damage to the property, and comply with other terms of the agreement. If the property is left in good condition at the end of the lease and all payments are made, the deposit is returned to the tenant. In Calgary (Alberta), the security deposit is usually equal to one month's rent. The provincial legislation regulates the maximum amount of the deposit, the procedure for its storage and return.

Security deposit features in Canada and Calgary

  • Deposit amount: In Alberta, the maximum deposit amount cannot exceed one month's rent. This means that the landlord has no right to demand a larger amount.
  • Storage of the deposit:** The landlord is obliged to keep the deposit separate from his own funds, often on a special account with interest. This protects the interests of the tenant.
  • Use of the deposit:** The deposit can be used to cover:
    • Unpaid rent;
    • Costs of repairing damages to the property that exceed normal wear and tear;
    • Other expenses stipulated by the lease agreement.
  • Before moving in, it is recommended to make a photo report or video recording of the apartment condition to avoid unreasonable claims upon departure.

How to return the security deposit at the end of the lease?

  1. Inspection of the apartment: At the end of the lease term, the landlord inspects the apartment to assess its condition. If the property is left in good condition and all payments have been made, the deposit will be refunded in full.
  2. Deposit Return Deadline: In Alberta, the landlord is required to return the deposit within 10 business days after the end of the tenancy. Specific terms may be stipulated in the lease, but they cannot contradict the law.
  3. Deductions from the deposit: If there is damage or unpaid rent, the landlord may deduct the appropriate amount. In this case, the landlord is obliged to provide the tenant with a detailed report with explanations and, if necessary, repair bills.
  4. Return of the balance:** The rest of the deposit (plus accrued interest, if any) must be returned to the tenant by the landlord.
  5. Deposit disputes:** If the tenant disagrees with the withholding of a portion of the deposit, they have the right to apply to the appropriate housing authority or court to resolve the dispute. In Alberta, this may be the Residential Tenancy Dispute Resolution Service.

Tips for tenants in Calgary to get their deposit back

  • Document the condition of the apartment:** Before you move in and when you move out, take photos or videos of the apartment. This will help you avoid unreasonable claims.
  • Have a clear rental agreement:** The agreement should specify the amount of the deposit, the terms of its use and return.
  • Keep all receipts:** If you have made repairs or improvements at your own expense, keep proof of the expenses.
  • Conduct a joint inspection:** When you move out, arrange a joint inspection with the landlord to discuss any complaints.
  • Notify the landlord in a timely manner:** If there are any problems with the property, notify the landlord promptly to avoid additional damage.

What if the landlord does not return the deposit?

  • Ask for a written explanation of the reasons for withholding the deposit.
  • If the answer is not satisfactory, contact the provincial housing authorities (Residential Tenancy Dispute Resolution Service).
  • As a last resort, you can file a lawsuit in court with the lease agreement, photographic evidence, and correspondence with the landlord.

Conclusion

Security deposits are an important mechanism for protecting the interests of both the tenant and the landlord in Canada, particularly in Calgary. Proper execution of the contract, documentation of the condition of the property and compliance with legal regulations will help you to return the deposit at the end of the lease without any problems. Knowing your rights and obligations, as well as being attentive during check-in and check-out, is the key to a successful deposit refund.