Nova Scotia security deposits and deductions

Deposit limits

A standard residential security deposit generally cannot be more than half of one month’s rent. The standard lease anticipates that deposits are kept separately in a trust account and returned with interest. Pet-related demands cannot be used to exceed the statutory security-deposit limit.

Returning the deposit

Within ten days after the tenancy ends, a landlord generally returns the deposit with interest unless the tenant has provided written consent to a deduction or an appropriate Form R claim is made. A landlord who simply decides to keep it without a claim risks losing the right to keep the deposit through that process.

Choose a form

• Form R: landlord claiming deductions.
• Form S: tenant asking for return.
• 10-day planner: time calculation only.

Records help

Keep dated condition photographs, itemized deductions, written consent, rent history and a signed inspection report if available. A report is helpful evidence but does not eliminate the legal rules governing deductions.

Example of the half-month limit

For a tenancy charging $1,800 per month, the ordinary security deposit cannot exceed $900. The province says a landlord cannot demand an additional deposit merely because the rent later increases. This ceiling is separate from the question of whether a specific deduction is valid.

Three lawful end-of-tenancy paths

1. Return: refund the deposit and applicable interest within ten days after the tenancy ends.
2. Agreement: reach a genuine written agreement with the tenant about a specified amount to retain.
3. Claim: if there is no agreement, submit Form R within ten days and provide the tenant a copy under current provincial instructions.

Landlords should keep proof of the trust-account deposit and itemized evidence; tenants should keep their move-out photographs, condition report, deposit receipt and forwarding-address record. The official security deposit interest calculator can check interest for the tenancy's actual dates.