What to do if the landlord does not return the deposit?

Non-return of a security deposit by a landlord is one of the most common problems faced by tenants in Calgary after the end of their lease. This situation can arise for a variety of reasons, ranging from simple failure to comply with legal deadlines to attempts to illegally retain funds for unjustified expenses. The Residential Tenancies Act (RTA) of the province of Alberta establishes clear rules for the return of security deposits, and tenants have significant rights and remedies if these rules are violated by the landlord.

Understanding your rights, knowing the procedures, and being aware of the legal remedies available to you is critical to successfully recovering your deposit. In most cases, the situation can be resolved without going to court by using appropriate communication, written requests, and referral to specialized dispute resolution services. However, it is important to act quickly and methodically, keeping all necessary documentation and following established procedures.

Legal basis for the return of a security deposit

Residential Tenancies Act establishes the fundamental principles and rules governing security deposits in Alberta. Under this Act, the landlord is required to return the security deposit within ten days after the tenant has vacated the premises and surrendered it to the landlord's possession. This time limit is not a recommendation — it is a legal requirement, and failure to comply with it can have serious consequences for the landlord.

A security deposit in Alberta cannot exceed one month's rent. These funds must be held by the landlord in a special interest-bearing deposit account, and the tenant is entitled to receive the interest accrued together with the principal amount of the deposit. The landlord may not use these funds until the end of the lease, except in cases expressly provided for by law.

If the landlord intends to retain part or all of the deposit, they must provide the tenant with a detailed written statement of all deductions within the same ten days. This report must include specific amounts, reasons for the deductions, and supporting documents such as repair or cleaning bills. In cases where the work has not yet been completed, the landlord may provide a preliminary estimate of the costs, but the final report and any remaining funds must be provided within thirty days.

Legal grounds for withholding the deposit

Landlords can only legally withhold part or all of the security deposit in specific circumstances, clearly defined in the RTA:

Unpaid rent

  • Basic rent
  • Agreed additional payments (utilities, etc.)

Damage beyond normal wear and tear

Normal wear and tear includes:

  • Paint faded from sunlight
  • Minor scratches on walls from everyday use
  • Worn carpet in high-traffic areas
  • Small nail holes in walls

Actual damage includes:

  • Large holes in walls
  • Broken windows
  • Appliances damaged due to negligence
  • Stains on carpets caused by pets
  • Other damage beyond what is expected from normal use

Cleaning costs

These may only be deducted if the premises have been left in a condition that requires cleaning beyond what can be expected from normal use. Tenants are required to leave the premises in a reasonably clean condition, but are not required to return it in perfect condition.

First steps if the deposit is not returned

If more than ten days have passed since the premises were vacated and the landlord has not returned the deposit or provided a written explanation for the deductions, the tenant must immediately take active steps:

  1. Contact the landlord directly to clarify the situation
  2. Written request — even after a phone call, be sure to send written confirmation
  3. Include in the request:
  • The amount of the deposit
  • The end date of the lease
  • The address of the rented property
  • Your new address for the return of funds
  1. Give a reasonable time for a response (7-14 days)
  2. Keep copies of all written requests and responses

If the landlord has provided an explanation for the deductions but you disagree with them, set out your objections in writing, referring to specific provisions of the RTA and providing supporting documents.

Writing a written request for a security deposit refund

A professionally written request should include:

Header and contact information

  • Your full contact information
  • Date the letter was written
  • Landlord's full contact information

Main body

  • Identification of the rented property (full address and rental period)
  • Exact amount of security deposit paid and date of payment
  • References to documents confirming payment
  • Clear statement of the problem
  • Detailed objections to deductions (if any)

Legal references

  • Direct reference to the relevant provisions of the Residential Tenancies Act
  • Clear but reasonable deadline for response (14 days)

Conclusion

  • Professional reference to the possibility of referring the matter to the RTDRS or the courts
  • Signature and retention of a copy

Documentation and evidence gathering

A strong evidence base is the foundation of a successful security deposit recovery:

Photographic documentation

  • Detailed photos or videos of all rooms upon move-out
  • General shots and close-ups of problem areas
  • Walls, floors, ceilings, windows, doors, and all appliances

Comparison with the initial report

  • Report on the condition of the premises upon move-in
  • Documentation of the initial condition as a baseline
  • The absence of an initial report may work in your favor

Documentation of communication

  • Repair requests during the tenancy
  • Correspondence with the landlord
  • Notifications of issues that have not been resolved

Financial documents

  • Deposit payment receipts
  • Rent payment records
  • Other payments related to the tenancy

Residential Tenancy Dispute Resolution Service (RTDRS)

RTDRS is a specialized service for the quick and economical resolution of disputes between tenants and landlords in Alberta:

Key features

  • Jurisdiction up to $100,000
  • Offices in Edmonton and Calgary
  • Telephone hearings for other regions
  • Application fee: $75-$100

Advantages over court

  • Faster resolution
  • Lower cost
  • Less formal environment
  • Experienced rental specialists

Required documentation

  • Lease agreement
  • Correspondence with the landlord
  • Photographs
  • Receipts
  • Other supporting evidence

RTDRS application procedure

Eligibility criteria

  • The application must be submitted within 2 years of the date the problem arose
  • The case must fall within the jurisdiction of the RTDRS
  • Previous attempts to resolve the dispute must have been exhausted

Online application system

  • Available 24/7
  • Create an account
  • Complete the application form with a detailed description of the dispute
  • Upload supporting documents
  • Pay the filing fee

After submitting the application

  • Receive a case number
  • Instructions for serving the notice on the landlord
  • Hearing scheduled within 24-48 hours

Preparing for the RTDRS hearing

Organizing documents

  • Logical order of evidence
  • Folders or sections for different types of evidence
  • Multiple copies of each document

Preparing the presentation

  • Clear and concise statement of the case
  • Brief overview + detailed timeline
  • Practice presentation in advance
  • Be prepared to answer questions

Legal aspects

  • Study the relevant sections of the RTA
  • Refer to specific legal provisions
  • Understand the difference between normal wear and tear and damage

Alternatives to RTDRS

Provincial Court (Civil Division)

  • Jurisdiction up to $50,000
  • For complex legal issues
  • Slower, more expensive, and more formal process

Court of King's Bench

  • Cases for any amount
  • Appeals of RTDRS decisions
  • Filing fee: $250

Mediation

  • For parties willing to compromise
  • Less formal process
  • Some legal clinics offer this service

Consumer Investigations Unit (CIU)

  • Investigates RTA violations
  • May result in penalties for the landlord
  • Cannot directly recover the deposit

Enforcement of RTDRS decisions

Legal force

  • RTDRS decisions = court decisions
  • Enforceable through the court system
  • Application to Provincial Court or Court of King's Bench

Means of enforcement

  • Bailiffs — seizure of bank accounts, wages, property
  • Registration of the decision — impact on the landlord's credit history
  • Referral to professional associations — for licensed managers

Legal assistance and resources

Calgary Legal Guidance

  • Free legal advice for low-income individuals
  • 30-45 minute consultations with volunteer lawyers
  • Specialization in housing law

Student Legal Services (University of Calgary)

  • Free legal assistance
  • Students supervised by experienced lawyers
  • Assistance with preparing documents

Centre for Public Legal Education Alberta (CPLEA)

  • Educational resources and information
  • Detailed guides and forms
  • Practical guides and workshops

Legal Aid Alberta

  • Assistance for eligible individuals
  • Limited consultations for deposit disputes
  • Referrals to other resources

Preventing future problems

Upon moving in

  • Detailed photos of all rooms and areas
  • Thorough initial inspection with the landlord
  • Written report on the condition of the premises
  • Keep a copy of the report

During the lease

  • Keep all documents (lease, receipts, correspondence)
  • Keep a chronological record of interactions with the landlord
  • Pay rent on time
  • Communicate any problems in writing

When moving out

  • Plan ahead
  • Thorough cleaning (but not beyond normal wear and tear)
  • Detailed photos after cleaning
  • Final inspection with the landlord

Special situations and challenges

Shared rental

  • Deposit refunded by check to all tenants
  • Need for cooperation between tenants
  • Possible disputes over distribution of funds

Change of owner/manager

  • Establish current responsible party
  • Verify transfer of deposit to new owner

Moving out of the province/country

  • Current contact information
  • Possibility of appointing a representative in Alberta

Bankruptcy of the landlord

  • Freezing of deposits
  • Filing a claim in bankruptcy proceedings

Financial consequences and compensation

Interest on the deposit

  • Accrual throughout the lease term
  • Payment together with the principal amount
  • Additional basis for a claim in case of non-payment

Additional compensation

  • Compensation for inconvenience and lost time
  • Reimbursement of legal costs
  • Possibility of recovering the application fee

Sanctions for landlords

  • Fines from the Consumer Investigations Unit
  • Reputational consequences
  • Public records of RTDRS decisions

Conclusion: Non-refund of security deposits by landlords in Calgary is a serious problem, but tenants have significant rights and effective remedies. The Residential Tenancies Act sets out clear requirements for the return of deposits, and the RTDRS provides an accessible and effective mechanism for resolving disputes. The keys to success are prompt action, thorough documentation, understanding your rights, and a willingness to use the legal remedies available. With proper preparation and support from available resources, most tenants can successfully recover their security deposits and protect their rights as tenants.