Security deposit rules in Alberta: what landlords and tenants need to know
In Alberta, security deposits are capped at one month’s rent and tightly regulated under the Residential Tenancies Act, including rules on interest, inspections, and returns.This guide covers Alberta tenancy law only. For other provinces, see our [rental laws guides].
In Alberta, security deposit rules are set out under the Residential Tenancies Act. Landlords are permitted to collect a deposit, but the amount is capped and strict rules apply to how it must be held and returned.
How Much Can a Landlord Collect?
The maximum security deposit in Alberta is one month's rent. The combined total of all refundable deposits cannot exceed one month's rent.
Does the Landlord Owe Interest on the Deposit?
Yes. Landlords must pay annual interest on security deposits. The interest rate for 2026 is 0%, down from 0.5% in 2025, according to the Alberta government. The rate resets annually on January 1. Landlords must also place the deposit into an interest-bearing trust account within two banking days of receiving it.
What Is Required at Move-In and Move-Out?
Landlords must complete mandatory move-in and move-out inspection reports. Both the landlord and tenant should be present and sign the reports. If a landlord fails to complete either report, they lose the right to make deductions from the deposit for damages.
What Can a Deposit Be Claimed Against?
A landlord can only claim against the deposit for unpaid rent or damage beyond normal wear and tear. Normal wear and tear cannot be deducted. If deductions are made, the landlord must provide a written statement of account itemising them.
When Must the Deposit Be Returned?
Under section 46 of the Residential Tenancies Act, landlords must return the security deposit within 10 days of the tenant vacating the property, along with a written statement of account detailing any deductions. If the landlord fails to return the deposit within this timeframe, tenants can apply to the RTDRS for a binding decision.
What Can Tenants Do if a Deposit Is Not Returned?
If your landlord does not return your deposit or makes deductions you believe are improper, you can apply to the Residential Tenancy Dispute Resolution Service (RTDRS) for a binding decision. The RTDRS is generally faster than going to court.
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