Security Deposit Deductions: What’s Fair, Legal, and Enforceable in Alberta

Summer move-outs are in full swing, and that means one thing for landlords: security deposit returns. Whether it’s a smooth handover or a contentious one, knowing what you can and cannot deduct is critical, not just for legal compliance but also for protecting your owner-tenant relationships.

Here’s what every Calgary landlord should know:

What You Can Deduct (Per the RTA):

• Unpaid rent

• Outstanding utility bills (if tenant responsibility)

• Damage beyond normal wear and tear

• Cleaning costs (if the unit isn't returned in the same condition)

You can’t deduct for upgrades, planned future repairs, or undocumented issues.

Damage vs. Wear and Tear: Know the Difference

• Wear & tear: Minor scuffs, faded paint, loose knobs.

• Damage: Holes in walls, broken appliances, pet stains.

If it’s caused by negligence or misuse, it’s deductible. If it’s just aging, it’s not.

Documentation Is Everything

A signed move-in inspection, a clear move-out report, and photo evidence are key to justifying deductions. Without proper documentation, even obvious damage can be hard to claim.

10 Days to Return the Deposit

Once the lease ends and keys are returned, you have 10 days to:

• Return the full deposit OR

• Provide a written breakdown of deductions with the remaining balance

  
  

Missing this deadline could mean refunding the entire deposit, damaged or not.

Pro Tip: Be Transparent

If you’re issuing deductions, include:

• An itemized list of charges

• Receipts or estimates

• Neutral, factual language

  
  

It builds trust and reduces disputes.

Need Help With Move-Outs or Deposit Returns?

We handle inspections, document damages, and process returns according to Alberta tenancy law, so you don’t have to guess what’s legal or fair. Reach out today to find out more.