Deposits and inspections

Collecting the deposit

• The maximum is one month's rent, counting any refundable fees. A lease clause asking for more is unenforceable.
• You can't increase the deposit later, even if the rent goes up.
• Non-refundable fees (for example a non-refundable pet fee) are treated as rent, not as part of the deposit.
• Give a receipt. The RTA doesn't require one, but the handbook recommends it.

Holding the deposit

• Put it in a trust account at a bank, treasury branch, credit union or trust company in Alberta within 2 banking days of receiving it.
• Keep records about the deposit for 3 years after the tenancy ends.
• Pay interest at the provincial rate.

The Province's interest calculator works out what's owed for a given deposit and set of dates.

Inspections

• Do the move-in inspection within one week before or after the tenant moves in, and the move-out inspection within one week before or after they move out.
• Use a written report that both of you sign, and give the tenant a copy.
• For the move-out inspection, offer at least two different times between 8 a.m. and 8 p.m., on two different days that aren't holidays. If the tenant doesn't attend, you can do it without them.
• Keep both reports for 3 years after the tenancy ends.
• If you don't complete both reports as required, you can't deduct the cost of damage from the deposit.

Returning the deposit

Within 10 days after the tenant gives up possession, return the deposit with interest, or give a written statement of account listing each deduction and return the balance. If damage costs aren't known yet, you can give an estimated statement within 10 days and a final one within 30 days. Deductions can only cover what the RTA allows: damage beyond normal wear and tear, unpaid rent and other amounts the tenant agreed to, and cleaning only if the lease commits the tenant to clean. When several tenants share one lease, the refund is made out to all of them.

General information only, not legal advice. The Residential Tenancies Act and its regulations are the final word; check the official sources above or get legal advice for your situation.

Related guides

• Landlord duties in Alberta
• Inspections (renter guide)