Alberta security deposit rules
The deposit rules people get wrong most often, with the statutory citation for each one, and a calculator for the interest actually owed.
A security deposit in Alberta cannot exceed one month's rent. The landlord must place it in an interest-bearing trust account within 2 banking days, and must return it within 10 days of the tenant giving up possession, or, where deductions apply, return the unused balance with an estimated statement of account in 10 days and a final statement within 30. Deposit interest was 0% from 2009 through 2023, 1.6% in 2024, 0.5% in 2025, and is 0% for 2026.
The cap: one month's rent
A security deposit may not exceed one month's rent under the tenancy agreement. If rent is not payable monthly, the cap is the rent that would be payable for one month. (RTA s. 43(1))
Rent went up? The deposit does not follow it. A landlord may not require a top-up to the security deposit later because the rent has gone up. The cap is measured against the rent when the deposit was taken.
Where the money has to sit
A landlord must place the security deposit in an interest-bearing trust account at a bank, treasury branch, credit union, loan or trust corporation in Alberta within 2 banking days of receiving it. The account must be designated as a trust account and must not be mixed with the landlord's own funds. (RTA s. 44(1)(a))
Getting it back: the 10-day rule
Within 10 days after the tenant gives up possession, the landlord must return the deposit in full, or, where deductions are permitted under the agreement, return the balance not intended to be used together with an estimated statement of account. Any remaining balance and a final statement of account are due within 30 days of the tenant giving up possession. (RTA s. 46)
Where deductions are taken, the statement must itemise damages, repair costs, cleaning charges and any fees. A lump sum labelled "cleaning and damages" is not a statement of account.
The inspection reports are the whole ballgame. A landlord who fails to complete the required inspection reports and give the tenant a copy loses the right to deduct from the security deposit for damage. Move-in: A move-in inspection report must be completed with the tenant within one week before or one week after the tenant takes possession. Move-out: A move-out inspection report must be completed within one week before or one week after the tenancy ends.
Deductions may only be taken for amounts the tenant agreed to in the tenancy agreement, for unpaid rent, or for damage beyond normal wear and tear. Normal wear and tear may never be deducted.
Deposit interest calculator
Alberta requires interest on security deposits at a rate reset every year. It was 0% for fifteen straight years and then was not, so the common belief that Alberta deposits never earn interest is now wrong, and 2024 and 2025 both carry a rate.
| Year | Statutory rate |
|---|---|
| 2026 | 0% |
| 2025 | 0.5% |
| 2024 | 1.6% |
| 2023 | 0% |
| 2022 | 0% |
| 2021 | 0% |
| 2020 | 0% |
| 2019 | 0% |
| 2018 | 0% |
| 2017 | 0% |
| 2016 | 0% |
| 2015 | 0% |
| 2014 | 0% |
| 2013 | 0% |
| 2012 | 0% |
| 2011 | 0% |
| 2010 | 0% |
| 2009 | 0% |
The rate equals the ATB Financial cashable one-year GIC rate in effect on November 1 of the previous year, minus 3 percentage points. If that GIC rate is 3% or less, the security deposit interest rate is 0%. Interest must be paid to the tenant annually, unless the landlord and tenant agree in writing that it will be compounded yearly and paid at the end of the tenancy. No payment is required for a year in which the rate is 0%. (Security Deposit Interest Rate Regulation, Alta Reg 190/2004)
Deposit in dispute, or want it returned cleanly?
Send me the move-in date, the deposit amount and what you are looking to deduct. I will tell you what the Act allows, what the interest works out to, and whether the paperwork holds up.
Rather hand it to someone?
I offer two landlord services in Calgary, Airdrie, Chestermere, Cochrane and Okotoks, through KO Realty.
- Full management: screening, rent collection, inspections and the tenancy paperwork, for 8–10% of rent collected.
- Tenant placement only: I find, screen and sign the tenant for 50–75% of one month's rent, once, and you manage from there.
Questions
What is the maximum security deposit a landlord can charge in Alberta?
One month's rent. A landlord cannot require more than one month's rent as a security deposit, and cannot require a top-up later just because the rent has increased.
How long does a landlord have to return a security deposit in Alberta?
10 days after the tenant gives up possession. If the landlord is deducting for damages or unpaid rent, they must return the balance they do not intend to use plus an estimated statement of account within those 10 days, then provide the final statement and any remaining balance within 30 days.
How much interest is owed on a security deposit in Alberta?
The rate for 2026 is 0%, so no interest is payable for 2026. The rate was 1.6% in 2024 and 0.5% in 2025, and was 0% every year from 2009 through 2023. The rate is set annually as the ATB Financial cashable one-year GIC rate on November 1 of the prior year, minus 3 percentage points, and is 0% whenever that GIC rate is 3% or less.
Where must a landlord keep a security deposit in Alberta?
In an interest-bearing trust account at an Alberta financial institution, within 2 banking days of receiving it. The account must be designated as a trust account and the deposit must not be mixed with the landlord's own money.
Is a move-in inspection required in Alberta?
Yes. A move-in inspection report must be completed with the tenant within one week before or after the tenant takes possession, and a move-out report within one week before or after the tenancy ends. A landlord who skips them and fails to give the tenant a copy loses the right to deduct from the security deposit for damage.
Sources
- Government of Alberta: Residential Tenancies Act (Alberta), full text
- Government of Alberta: RTA Handbook for Landlords and Tenants
- Government of Alberta: Alberta.ca: Annual security deposit interest rate
- Government of Alberta: Alberta.ca: During a tenancy
- Government of Alberta: Alberta.ca: Ending a tenancy
Rules, fees and programs change. Confirm current details with the issuing authority before acting.
Last updated 2026-09-28 · Written by Mohammad Emon, REALTOR® (SRES®) & Licensed Property Manager, KO Realty · RECA licence CON-00133897