What Are Alberta’s Security Deposit Rules for Landlords?
Quick answer: In Alberta, a security deposit is the tenant's money, held under specific rules. It can't be more than one month's rent at the start of the tenancy, it must go into an interest-bearing Alberta trust account within two banking days, and it comes with strict inspection and return deadlines.
A security deposit should never be treated as ordinary rental income or general operating cash. Here are the six rules landlords need to follow.
1. The amount is capped
A security deposit can't be more than one month's rent at the time the tenancy starts.
2. The deposit can't rise with the rent
The original deposit stays the same for the whole tenancy. If the rent goes up later, you can't increase the deposit to match.
3. Use an Alberta trust account
Put the deposit into an interest-bearing trust account in Alberta within two banking days. Keeping it separate makes it clear the money still belongs to the tenant.
4. Follow the current interest rule
Interest applies to security deposits, and the prescribed rate can change from year to year. Check the official Alberta rate rather than relying on last year's number.
5. Complete the inspection requirements
Move-in and move-out inspection reports are mandatory in Alberta. They also affect whether you can deduct for damage or cleaning, so complete them carefully.
6. Meet the return deadlines
Within 10 days, return the deposit or provide the required statement or estimate. A final statement may be due within 30 days.
Tip: Good records protect both sides. Keep receipts, inspection reports, invoices, statements and proof of delivery.
Related: Move-Out Inspection: Your 8-Point Landlord Checklist
Want the full guide? Read Everything You Need to Know About Security Deposits.
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This article is general information, not legal advice. For your specific situation, refer to Alberta's Residential Tenancies Act or speak with a professional.
