What is the purpose of a security deposit or otherwise known as damage deposit?

The security deposit or damage deposit is a fee held by the landlord in an interest barring account as collateral against any damages that may occur during your tenancy. If a proper pre and post-tenancy inspection were done, the cost to repair the unit to move-in condition would be deducted from the deposit. Items can include cleaning, painting, drywall repair, damage to the flooring above normal wear and tear. However, the landlord must provide receipts or an estimate of the work within a set time range, more on this later.

Inspections

Audit inspection report illustration255089 489x360
What is my damage deposit for?

A move-in or move-out inspection is highly recommended to occur, and it must be within 7 days of the date of occupancy. It can be before or after the occupancy date. There are some standard forms for inspections that any landlord can purchase. Some create their own, but they need to include some critical details to make them valid.

  • Names of who was present at the inspection
  • A selection of agreement or disagreement of the statements made in the inspection
  • Signature and date of those present for the inspection

The landlord must provide two different dates for the inspection to occur. If the tenant cannot make either date, the inspection can proceed without the tenant present, but the report must note that the tenant was not present. The inspection time must be between 8 am and 8 pm and not scheduled on a holiday. The landlord must give the final inspection report to the tenant, and the landlord must retain a copy for 3 years after the tenancy has ended.

The landlord should explain how the smoke and carbon monoxide (CO) detectors can be tested and demonstrated during the inspection. The continuing care of the detectors is on the tenant.

Am I responsible for maintenance?

The tenant is responsible for the property’s interior and reports any maintenance issues to the landlord in a timely fashion. For example, a faucet is leaking and causing water to collect on the counter. If it is reported immediately and the landlord does nothing, further damage is the landlord’s responsibility. If the issue is not mentioned to the landlord for months, then the increased damage and cost after the repair could be the tenant’s responsibility.

Equipment that requires regular maintenance, such as furnace filters, batteries for smoke and CO detectors, and dryer lint screens (to name a few), is the tenant’s responsibility to maintain. Failure to do proper maintenance can risk your life and damage the appliance, which can also be at the tenant’s cost.

The tenant should report pests such as bed bugs immediately to the landlord. The landlord must ensure the pests are gone, and the tenant will need to follow the direction of the pest control company. If the tenant does not, then increased costs will be the tenant. If the tenant is determined to be the cause of the infestation, in that case, the landlord can have the tenant pay or reimburse the landlord or go through the Residential Tenancy Dispute Resolution Service to have the tenant pay.

Why do I pay for cleaning?

Cleaning with towel 540x360As part of the inspection, the tenant should note how clean the unit is, as it would be the standard needed to get back to upon the end of the tenancy. If you have a pet, you will need to steam clean the carpet when the rental term ends or that will be charged back to you. Even without a pet, steam cleaning the carpet may be required. It is always better to ask the landlord the standard they expect at the end rather than assume, and the deposit gets deducted.

How do I ensure I get back my damage deposit?

When the tenant moves out, they have the right to get their deposits back, with any interest owing (currently 0%), as long as:

  • There is no damage beyond normal wear and tear
  • The rental premises have been properly cleaned
  • No rent or other costs are owing, such as utilities

If there are no deductions, the landlord must pay the deposit plus interest back to the tenant within 10 days. If there are deductions, the landlord must do one of the following within 10 days:

  • return the balance of the deposit to the tenant with a statement of account, or
  • give the tenant an estimate of the deductions that will be made and return any remaining money.

The tenant must receive a final statement and any money owing within 30 days after the tenancy ends.

You can find any further information on the Government of Alberta site found here.