Security Deposit Limits for Alberta Rentals Explained

Before you sign a lease, the landlord may ask for money up front. It helps to know how much they can ask for and what the law calls a security deposit, so you can spot a request that goes too far.

In Alberta, the rules come from the Residential Tenancies Act. This article explains the limit, what counts toward it, how the deposit must be handled once you have paid it, and how you get it back when the tenancy ends.

This article covers the law of Alberta.

What counts as a security deposit

The Act defines a security deposit broadly. It is any money, property or right that a tenant of residential premises pays or gives to a landlord to secure the tenant's obligations, or to be returned to the tenant when a condition occurs.

In plain words, if the money is meant to protect the landlord against unpaid rent or damage, or is meant to come back to you later, it is likely a security deposit whatever the landlord calls it. If you are unsure how a particular payment is treated, a lawyer can confirm.

The maximum amount

A security deposit cannot exceed one month's rent, or the monthly equivalent if rent is paid on another schedule such as weekly. The limit is measured against the rent at the time the tenancy starts.

Only rent paid directly to the landlord counts toward the limit. Payments to third parties, such as utility providers, do not.

Sub-metered utilities are a separate matter

A separate deposit for sub-metered heat, natural gas or electricity is treated as separate from the security deposit. The sub-meter contract should state the amount and how long it will be held.

How the landlord must hold the money

• The deposit cannot be increased when rent increases or for any other reason during the tenancy, and a landlord cannot require you to pay an increase in an existing deposit.
• A cash deposit must go into an interest-bearing trust account at an Alberta bank, treasury branch, credit union or trust company within 2 banking days of the landlord receiving it.
• The landlord must keep deposit records for at least 3 years after the tenancy ends.
• Interest is paid annually at the prescribed rate. The Alberta.ca chart lists 0.0% for 2026 and 0.5% for 2025.
• If you and the landlord agree in writing, interest can instead be compounded and paid at the end of the tenancy.

Getting the deposit back when you move out

Within 10 days after you give up possession, the landlord must either return the security deposit with interest, or return the balance together with a statement of account showing the deductions.

If the exact deduction cannot yet be determined within those 10 days, the landlord returns the balance that is clearly not needed along with an estimated statement. The landlord then gives you the remaining balance and a final statement within 30 days.

• No deduction may be made from the deposit for normal wear and tear during the tenancy.
• A landlord cannot deduct for damage unless the move-in and move-out inspection and report requirements in section 19 of the Act were met. The landlord can still pursue damage or cleaning costs through legal action.
• You should give your landlord a forwarding address in writing and keep your records for 3 years. Landlords must keep inspection reports for at least 3 years after the tenancy ends.

If the landlord does not return the deposit or the statement as required, you may sue to recover it. The court then determines the permitted deductions and orders the balance paid, and Alberta.ca says tenants may apply to the Residential Tenancy Dispute Resolution Service (RTDRS) or to court over deposit deductions.

Either a landlord or a tenant may apply to RTDRS instead of court. Once one party files with RTDRS, the other is bound to that forum, and a court application on the same dispute is barred unless the RTDRS application is withdrawn.

What to do next

• Check the proposed deposit against one month's rent before you pay.
• Ask for a written receipt that states the amount and what it is for.
• Keep copies of the lease, receipts and any messages about the deposit.
• Take part in the move-in and move-out inspections and ask for a copy of each report.
• When you move out, give your forwarding address to the landlord in writing and keep a copy.
• If you are asked for more than the limit, or the deposit is not returned on time, raise it in writing and consider getting legal advice.

Frequently asked questions