Residential Tenancies Branch
FACT SHEET
Security Deposits
-
What if a landlord wants to keep all, or part, of a security deposit?
-
What happens if the tenant doesn't agree with the landlord's claim?
-
What does the Residential Tenancies Branch do with a claim against a deposit?
-
Can a tenant use their security deposit for their last month's rent?
A landlord may ask a tenant to pay a security deposit before they move in. The landlord holds this money until the tenant moves out.
This security deposit protects the landlord if the tenant:
• doesn't pay the rent;
• leaves without notice;
• causes damage; or
• doesn't clean up properly when they leave.
Does a tenant have to pay a security deposit?
Yes, if the landlord asks for one. But, a landlord can only ask for a security deposit when a tenant is moving in or when a tenancy agreement is transferred to another person.
How much money should a security deposit be?
A security deposit can't be more than one-half of the first month's rent. For example, if the rent is $400.00 per month, the security deposit can't be more than $200.00.
A landlord must give a tenant a receipt for a security deposit. The receipt must show:
• the amount of the security deposit;
• the date it was received; and
• the address of the rental unit.
Does a landlord have to pay interest on a security deposit?
A landlord must pay a tenant interest on a security deposit. (Interest is paid from the time the landlord gets the security deposit, until it's given back to the tenant.) The government sets the interest rate payable on security deposits.
Visit the Branch's website at www.residentialtenancies.mb.ca to see the current and previous interest rates or to calculate the interest on a security deposit.
When must a landlord return a security deposit to a tenant?
A security deposit must be returned within 14 days of the end of a tenancy, unless the tenant:
• has not paid the rent;
• has damaged the rental unit; or
• has left the unit dirty.
What if a landlord wants to keep all, or part, of a security deposit?
A landlord who wants to keep all or part of a security deposit must:
• send the tenant a written notice of the claim;
• give the tenant the amount of security deposit and interest that is not
needed for unpaid rent, repairs or cleaning.
The landlord must do this within 28 days of the end of the tenancy.
What happens if the tenant doesn't agree with the landlord's claim?
If the tenant doesn't agree with the claim, either the landlord or the tenant can ask the Residential Tenancies Branch to make a decision on who should get the security deposit and interest.
What does the Residential Tenancies Branch do with a claim against a deposit?
The branch contacts the landlord and tenant to try to settle the claim. This process is called mediation.
If the branch can't mediate, then they decide who should get the security deposit and interest. They can make a decision by:
• reviewing the information the landlord and tenant give them; or
• asking the landlord, tenant and their witnesses to come to the branch.
This meeting is called a hearing.
Can a tenant use their security deposit for their last month’s rent?
Yes, but only if the landlord agrees in writing.
For more information
This fact sheet is only a brief explanation. For more information contact:
The Residential Tenancies Branch
For Branch offices click here
