Alberta security deposit rules
Last reviewed 20 September 2026
In Alberta a security deposit cannot exceed one month's rent as it stood when the tenancy started. It must be held in an interest-bearing trust account within two days, and interest accrues at a rate set annually by regulation — 0% for 2026. When the tenancy ends the landlord has 10 days from the tenant giving up possession to either return the deposit in full with interest or deliver an itemized statement of account with the balance. Only where repair or cleaning costs genuinely cannot be determined in time may an estimated statement go out within the 10 days, with the final statement and any money still owing following within 30 days. No deduction for damage is permitted at all unless both a move-in and a move-out inspection report were completed.
| Maximum deposit | One month's rent at the start of the tenancy. It does not increase when the rent does. |
| Into trust | Within 2 days of collection, in an interest-bearing account |
| Interest rate 2026 | 0.0% |
| Interest rate 2025 | 0.5% |
| Interest rate 2024 | 1.6% |
| Deadline to return or account | 10 days from the tenant giving up possession — full refund, or itemized statement plus balance |
| If costs aren't known yet | Estimated statement within the 10 days; final statement and any balance within 30 days |
| Required before any deduction | Both the move-in and the move-out inspection report |
| Record retention | Inspection reports kept 3 years after the tenancy ends |
| Dispute forum | RTDRS — claims up to $100,000, generally within 2 years |
How much can a landlord charge?
No more than one month's rent, fixed at the amount payable when the tenancy began. This catches people out on long tenancies: if rent was $1,200 in 2019 and is $1,600 today, the deposit is still capped at $1,200. You cannot top it up later, and asking for the difference is not permitted.
Alberta has a single security deposit. There is no separate pet damage deposit as there is in British Columbia — a pet fee charged on top of a full one-month deposit is over the limit. Non-refundable "cleaning fees" charged at the start of a tenancy are likewise treated as part of the deposit.
Where the money has to sit
The deposit is the tenant's money held by the landlord, not the landlord's money. It must go into an interest-bearing trust account at a bank, treasury branch, credit union or trust corporation in Alberta within two days of being collected, and it must stay there for the life of the tenancy.
If you manage property for other people under a RECA licence, the bar is higher again: trust money must reach the account within three business days, the account is pooled with per-owner sub-ledgers, no commingling with operating funds is allowed, and the whole thing is reconciled and open to audit.
Interest on the deposit
Interest accrues at a rate set each year by regulation. The formula takes the rate ATB Financial was paying on a cashable one-year GIC on 1 November of the previous year and subtracts three percentage points, floored at zero — which is why the rate has been 0% for most of the last two decades.
Interest is payable to the tenant annually, unless the landlord and tenant have agreed in writing that it compounds and is paid at the end of the tenancy. A landlord may agree to pay a higher rate, and that agreement binds them.
| Period | Prescribed rate |
|---|---|
| 1 Jan 2026 – 31 Dec 2026 | 0% |
| 1 Jan 2025 – 31 Dec 2025 | 0.5% |
| 1 Jan 2024 – 31 Dec 2024 | 1.6% |
| 1 Jan 2009 – 31 Dec 2023 | 0% |
| 1 Jan 2008 – 31 Dec 2008 | 0.5% |
| 1 Jan 2007 – 31 Dec 2007 | 0.3% |
| 1 Jan 2002 – 31 Dec 2006 | 0% |
| 1 Jan 2001 – 31 Dec 2001 | 1.75% |
| 1 Jan 2000 – 31 Dec 2000 | 1.15% |
| 1 Jan 1999 – 31 Dec 1999 | 0.75% |
| 1 Jan 1997 – 31 Dec 1998 | 0% |
| 1 Jan 1996 – 31 Dec 1996 | 2.5% |
| 1 Jan 1995 – 31 Dec 1995 | 2.75% |
| 1 Jul 1994 – 31 Dec 1994 | 1.5% |
| 1 Feb 1993 – 30 Jun 1994 | 3% |
| 1 Mar 1987 – 31 Jan 1993 | 6% |
| 1 Jan 1984 – 28 Feb 1987 | 8% |
Rates as published by the Government of Alberta.
Work out the exact number
Our free calculator walks the deposit through every rate period it spans, shows both statutory deadlines with real dates, and flags any deduction that wouldn't survive a hearing.
Open the deposit calculatorThe two inspection reports decide everything
This is the rule that costs Alberta landlords the most money, and it is absolute.
A move-in inspection report must be completed within one week before or after the tenant takes possession, and a move-out report within one week before or after possession ends. The landlord must offer the tenant two times for each; if the tenant declines or fails to attend both, the inspection proceeds and the non-attendance is recorded. A copy goes to the tenant, and the reports are kept for three years after the tenancy ends.
How to run an inspection that holds up →
Returning the deposit: ten days, with one exception
The deadline is the same whether or not you're deducting. Within ten days of the tenant giving up possession, you must deliver one of:
- The full deposit plus accrued interest, if nothing is being deducted; or
- An itemized statement of account plus the balance, if something is.
There is one exception, and it is narrower than most landlords think. If the cost of repairs or cleaning genuinely cannot be determined within ten days — you're waiting on a contractor's invoice, say — you may deliver an estimated statement of account within the ten days, and must then deliver the final statement, with any money still owing, within thirty days.
The itemized statement has to itemize. A single line reading "cleaning and repairs — $640" is not a statement of deductions; each item needs its own description and amount, and you should be able to produce the invoice or quote behind it.
Send it to the tenant's forwarding address. If they haven't given you one, send it to the last address you have for them and keep proof of what you sent and when.
What can come out of it
A security deposit can be applied against unpaid rent, against damage beyond normal wear and tear, and against the cost of cleaning where the unit was left worse than it was received. It cannot be applied against normal wear, against pre-existing damage recorded at move-in, or against things the move-in report doesn't support.
Where the line falls, with examples →
What happens if you miss the deadline
You lose the deduction. The tenant can apply to the Residential Tenancy Dispute Resolution Service, and a landlord who withheld money without meeting the statutory requirements is ordered to return it. In practice the damage compounds: a missed deadline usually travels with missing documentation, and once one part of a statement looks careless the rest of it gets read the same way.
The pattern in almost every lost deposit case is the same — the landlord was probably entitled to the money and simply could not prove it in the time allowed.
If there's a dispute
Deposit disputes in Alberta go to the Residential Tenancy Dispute Resolution Service, which handles claims up to $100,000 and is faster and cheaper than court. Applications are generally made within two years of the loss coming to the applicant's attention. Larger or more complex matters go to the Court of King's Bench.
RTDRS decisions turn on evidence. Dated photographs of the same item at move-in and at move-out win these. Estimates lose to invoices. Recollections lose to everything.
If you're the tenant
Give your landlord a forwarding address in writing when you leave, and keep a copy. Attend both inspections and take your own photographs of every room, including the ones that look fine. If ten days pass with no deposit and no itemized statement, write once asking for it, then apply to RTDRS — and if no move-in inspection report was ever done, say so, because that alone bars any deduction for damage.
Frequently asked questions
How long does a landlord have to return a security deposit in Alberta?
Ten days from when the tenant gives up possession — either the full deposit with interest, or an itemized statement of account with the balance. If repair or cleaning costs cannot be determined in time, an estimated statement must still go out within the ten days, and the final statement with any remaining money within thirty days.
How much can a landlord charge for a security deposit in Alberta?
No more than one month's rent as it stood at the start of the tenancy. The cap does not rise when the rent rises, and Alberta has no separate pet damage deposit.
What is the Alberta security deposit interest rate for 2026?
0%. It was 0.5% for 2025 and 1.6% for 2024. The rate is set annually by regulation and has been 0% for most years since 2009.
Can a landlord keep a deposit if there was no move-in inspection?
No. Both a move-in and a move-out inspection report are required before any amount may be deducted for damage. Without both, the full deposit plus interest must be returned regardless of the state of the unit.
Can a security deposit be used for unpaid rent in Alberta?
Yes. A deposit may be applied against unpaid rent as well as damage and cleaning, and each must appear as its own line on the itemized statement.
Does the deposit have to be in a separate bank account?
It must be in an interest-bearing trust account, placed there within two days of collection. Licensed property managers in Alberta operate a pooled trust account with per-owner sub-ledgers and must deposit within three business days.
What if the tenant won't give a forwarding address?
Send the statement and any balance to the last address you have for them and keep proof of what was sent and when. The obligation and the deadline do not pause because the tenant is hard to reach.