Alberta Security Deposit Rules 2026: Maximum, Interest, Return Timeline

Under section 44 of the Alberta Residential Tenancies Act, a security deposit cannot exceed one month of rent. Some landlords call it a damage deposit; the law treats them the same. Additional pet deposits, key deposits, or cleaning deposits are not authorized as separate deposits and count toward the one-month maximum.

What counts as "one month's rent"

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  For monthly tenancies:the current monthly rent when the tenancy begins.
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  For weekly tenancies:one week's rent.
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  For furnished rentals:still capped at one month; landlords cannot add a separate 'furniture deposit'.
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  For pet deposits:included in the one-month cap. A landlord may refuse to allow pets but cannot legally charge extra beyond the maximum.

Section 45 requires the landlord to hold the deposit in an interest-bearing trust account at a bank, treasury branch, credit union, loan corporation, or trust corporation, separate from the landlord's personal or business funds. This is not optional. Landlords who commingle deposits with their own funds are in breach of the Act and expose themselves to liability at RTDRS.

In practice, small owner-landlords sometimes overlook this rule and hold deposits in a personal chequing account. That does not extinguish the tenant's rights but it does make disputes messier. If you are a landlord reading this and you have not set up a proper trust account, do it now.

Section 46 requires the landlord to pay the tenant interest at the rate prescribed by regulation (Alberta Regulation 89/2006). The rate is set by Ministerial Order and can change annually. Since November 1, 2009, the prescribed rate has been 0.00 percent, following the Bank of Canada rate reductions during the 2008-2009 financial crisis. It has remained at zero through successive regulation updates.

For tenancies that started before November 2009, the earlier rate schedule still applies to the portion of interest that accrued before the change. Our Security Deposit Interest Calculator walks through the full historical schedule and computes the exact interest owed for any period.

Section 46(4) requires the landlord to return the security deposit plus accrued interest, together with an itemized statement of any deductions, within 10 days after the tenancy ends. Ending the tenancy means the tenant has moved out, delivered vacant possession, and returned the keys.

What the itemized statement must include

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  The total amount of the deposit.
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  The interest owed.Computed at the prescribed rate for each period the deposit was held.
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  Each deduction with a description.For example: 'Cleaning kitchen $200 (see receipt attached)'.
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  A receipt or invoice for each deduction.The landlord must be able to substantiate the deduction with real documents.
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  The refund amount owed to the tenant.Either paid directly with the statement or explained as forfeited if deductions equal or exceed the deposit.

Deductions a landlord CAN make

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  Damage beyond normal wear and tear.Documented by move-in and move-out inspection reports. Real repair invoices required.
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  Unpaid rent.If the tenant left owing rent for the last month or partial month.
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  Cleaning if the unit is left unreasonably dirty.Not routine end-of-tenancy cleaning; only cleaning beyond what a landlord would normally do between tenants.
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  Damage caused by pets, guests, or the tenant's willful acts.
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  Loss caused by tenant breach.For example, replacement locks after the tenant lost the keys.

Deductions a landlord CANNOT make

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  Normal wear and tear.Faded paint, worn carpet edges, standard appliance wear. Landlords absorb these as cost of operation.
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  Improvements or upgrades.New carpet in a unit that had five-year-old carpet at move-in is not a deduction.
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  Future rent.If a tenant gives proper notice and moves out, the landlord cannot deduct anticipated vacancy loss.
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  Undocumented damage.Without a written move-in inspection, the landlord cannot lawfully claim the damage was tenant-caused.

If the 10-day timeline passes without the deposit being returned, or if the landlord's deductions look inflated or undocumented, the tenant can apply to the Residential Tenancy Dispute Resolution Service (RTDRS). Filing fee is $75. Decisions are typically issued in weeks rather than months.

What to bring to RTDRS

1. 1
   The written lease.Complete, signed by both parties.
2. 2
   The move-in inspection report.Signed by both parties. Without one, the landlord's damage claims are much weaker.
3. 3
   The move-out inspection report.If the landlord refused to do one, note that in your application.
4. 4
   Photos of the unit's condition.At move-in and move-out.
5. 5
   All correspondence.Text messages, emails, letters exchanged with the landlord about the deposit.
6. 6
   The landlord's itemized statement.Or evidence that no statement was provided.
7. 7
   Your interest calculation.Use the SQRFT calculator and print the breakdown.

• Alberta Residential Tenancies Act, RSA 2000, c R-17.1 (sections 44-48)
• Alberta Regulation 89/2006 (Security Deposit Interest Rate)
• Alberta.ca: Information for tenants and landlords
• Alberta Residential Tenancy Dispute Resolution Service (RTDRS)