Can I Use My Security Deposit as Last Month's Rent in Saskatchewan?

Moving out is expensive, and it is tempting to look at the security deposit your landlord is holding and think it should simply cover your last month. Many tenants assume that is how it works. In Saskatchewan, it is not that simple.

This article explains the rule on using a deposit as rent, why the deposit exists and how it must be handled, and what happens when the tenancy ends. It is general information, not advice on your particular situation.

This article covers the law of Saskatchewan.

The short answer: not without written consent

In Saskatchewan, a tenant must not apply the security deposit as rent unless the landlord gives written consent. That means you cannot decide on your own to withhold your last month's rent and tell the landlord the deposit covers it.

If you skip rent without that consent, the landlord may treat the rent as unpaid. That can lead to a dispute, and it can complicate how the deposit is dealt with later. Whether any particular consequence follows depends on the facts, so it is worth speaking with a lawyer if you are unsure.

Why the deposit exists and how it is handled

A security deposit is not prepaid rent. It is money held as security during the tenancy. The rules around it are designed to protect both sides.

• A landlord may request a deposit of no more than one calendar month's rent at the start of the tenancy.
• A landlord can take at most 50% of the deposit at signing, and the rest is due within two months of the tenant taking possession.
• The landlord must either invest the deposit in securities authorized by The Trustee Act, 2009 or hold it in a trust account at a bank, trust company or credit union.
• A tenancy agreement cannot require that the landlord will automatically keep all or part of the deposit.

Because the deposit is held in trust or invested, it is not money the landlord can treat as their own simply because the lease is ending.

What happens to the deposit when you move out

A landlord has seven business days after learning, or after the point when they reasonably should have known, that the tenant has vacated to return the deposit or make a claim against it, subject to an exception set out in the legislation. A landlord who wants to keep any of the deposit must make a claim within seven business days of the tenancy ending, and the notice of claim must be served on all tenants at the service addresses they provided.

This is one reason to give your landlord a clear forwarding address and to keep records of when you moved out. The exact timing can depend on the circumstances, including when the landlord knew you had left.

Interest is a limited point. Interest on a security deposit is payable to the tenant only for tenancies longer than five years, and it accrues only up to 30 days after the tenancy ends.

If you disagree with the landlord's claim

A tenant can dispute a landlord's claim by applying to the Office of Residential Tenancies (ORT) through its online portal for return of the security deposit. The application must be made within 60 days of the tenancy end date, and a $50 filing fee applies. The ORT then sends a hearing notice to both parties.

What to do next

If you hoped to use the deposit toward your last month, the safest route is to ask first and get the answer in writing.

• Ask your landlord in writing whether they consent to the deposit being applied to the last month's rent.
• Wait for written consent before withholding any rent. A verbal yes is hard to prove.
• Keep a copy of your lease, your deposit receipt and your rent payment records.
• Give your landlord a service address in writing before you move out.
• Take dated photos of the unit when you leave.
• Note the date you moved out and watch for any notice of claim.
• If a claim arrives that you dispute, count 60 days from the end of the tenancy and apply to the ORT in time.

If the situation is complicated, such as several tenants, a disputed move-out date or a lease with unusual terms, a lawyer can confirm how the rules apply to you.

Frequently asked questions