Alberta security deposit law and disputes
A security deposit may not exceed one month’s rent at the beginning of the tenancy; it cannot later be increased because rent rose.
At move-in
The landlord must hold the security deposit in an eligible Alberta interest-bearing trust account within two banking days. Move-in and move-out inspection reports are mandatory; an unfulfilled inspection requirement can prevent damage or cleaning deductions.
At move-out
- Within 10 days of the tenant giving up possession, the landlord normally returns the full deposit plus interest or gives the required itemized or estimated account and undisputed balance.
- If estimated deductions are used, provide the final accounting and remainder within 30 days after the tenancy ends.
- The prescribed interest rate is 0% for 2026, but 2024–2025 may have payable interest. Do not apply the 2026 rate retrospectively.
Dispute options
Give a forwarding address in writing, request the refund and proper account, and preserve receipts, photos and inspection reports. Disputed deductions can be brought to RTDRS or court where jurisdiction allows.
Worked example: deposit and interest
On a $1,700 monthly rental beginning in 2026, the security deposit may not exceed $1,700 at the tenancy's start. A later rent increase does not permit the landlord to top up the deposit. Alberta's prescribed minimum interest rate is 0% for calendar 2026, but a deposit held during 2024 or 2025 may have earned interest at those years' rates; use the official interest calculator for the actual holding period.
What to check when money is withheld
- Keep the signed move-in and move-out inspection reports, photographs, deposit receipt and forwarding address.
- Request the itemized statement and any supporting repair or cleaning invoices.
- Check the ten-day account-and-refund rule after possession ends and any 30-day final-account rule where estimates were used.
- Where a dispute remains, check whether RTDRS has jurisdiction and which current filing steps apply.
A landlord's failure to follow required inspection-report procedures can affect the ability to deduct for damage or cleaning. Not every disagreement over a scratch or stain is proof of tenant liability.