Security Deposit (Residential Tenancy)
A security deposit is an amount of money that the landlord may ask the tenant to pay at the beginning of a tenancy.
If a landlord receives a security deposit it must be remitted to the Residential Tenancies Tribunal within 15 days, otherwise it is an offense under the Residential Tenancies Act. Completion of the Security Deposit Remittance Form is also required.
Amount of security deposit that can be charged:
Week to week tenancy: up to (1) week of rent
Month to month tenancy: up to (1) month of rent
Year to year tenancy: up to (1) month of rent
Fixed-term tenancy: up to (1) month of rent
Mobile home site tenancy: up to (3) months of rent
Landlords in New Brunswick are not permitted to charge an additional deposit for pets. However, if the security deposit does not cover all costs incurred for damages to a premise, the Landlord may pursue the matter through an alternate legal avenue such as small claims court.
At the start of tenancy:
• If a rental agreement requires a security deposit the tenant may pay it directly to the landlord, or at any Service New Brunswick Centre. Completion of the Security Deposit Remittance Form is required, and a receipt should be provided. Landlord and tenant should also complete an Inspection Report.
At the end of tenancy:
• The tenant must apply to get the deposit back using the Application for Return of Security Deposit. The tenant may also apply to transfer the deposit to another rental unit, or transfer to another tenant remaining at the same premise.
• The landlord may complete an Inspection Report, and a Security Deposit Claim Form for all or a portion of the deposit for any unpaid rent or late payment, necessary cleaning, repair costs or unpaid utilities (heat, water, electric power or natural gas services, etc.) provided by the landlord but not covered by the rent.
If no claim, minimum processing time to receive the security deposit:
• 2 weeks (if both landlord and tenant complete the Security Deposit Refund Agreement)
• 3 weeks (if Application for Return of Security Deposit is submitted online)
• 4 weeks (if Application for Return of Security Deposit is submitted by paper through a service centre)
If landlord submits a Security Deposit Claim Form:
• A Residential Tenancies Officer will decide the claim amount, based on the law and the evidence provided by the landlord and tenant.
• The Residential Tenancies Tribunal aims to provide a decision within 45 days.
• Service New Brunswick will mail cheques after the appeal period has expired. For more detail refer to: Dispute Resolution Process