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Security Deposit Deductions in Alberta: What Landlords Can and Cannot Keep
GuideAlberta

Security Deposit Deductions in Alberta: What Landlords Can and Cannot Keep

What an Alberta landlord can and cannot take from a security deposit: the lease conditions, the wear-and-tear rule, the inspection report bar on damage deductions and the 10-day return, with a worked example.

Security deposit deductions in Alberta are limited to what the tenant agreed to in the lease: unpaid rent, damage beyond normal wear and tear, and costs such as cleaning or utilities where the agreement covers them. Nothing can be kept for wear and tear, and nothing for damage unless both inspection reports were done (RTA s.46(5)-(6)).

At a glance: Alberta deposit deductions

  • Allowed: only deductions made "in accordance with the conditions agreed to by the tenant" (s.46(2)(b)).
  • Never: normal wear and tear (s.46(5)).
  • Damage and cleaning: only if the move-in and move-out inspection reports were done (s.46(6)).
  • Deadline: 10 days after the tenant gives up possession, with a statement of account; a final statement within 30 days if you sent an estimate (s.46(2)).
  • Interest: part of the deposit; the 2026 rate is 0%.

This guide is for Alberta landlords and property managers working out what they can keep from a security deposit at move-out, and for tenants checking a statement of account. It follows the Residential Tenancies Act (RTA) and the Government of Alberta's guidance on returning deposits, both checked on October 24, 2026.

Alberta Deposit Deduction Checklist

What an Alberta landlord can keep from a security deposit, and how to return the rest (rules as of October 24, 2026).

Get Free PDF →

What can an Alberta landlord deduct from a security deposit?

What an Alberta landlord can and cannot deduct from a security deposit; damage and cleaning only with both inspection reports

An Alberta landlord can deduct only amounts that the tenant agreed the deposit could cover, which in practice means the conditions written into the lease (RTA s.46(2)(b)-(c)). The Government of Alberta says a tenant gets the deposit back with interest when there is no damage beyond normal wear and tear, the unit was cleaned where the agreement requires it, and no rent or other costs are owing.

ItemCan it come off the deposit?Condition
Unpaid rentYesThe amount actually owing at move-out
Damage beyond normal wear and tearYesOnly if both inspection reports were done (s.46(6))
CleaningYesOnly if the lease requires it, and only with both inspection reports
Utilities, late fees and other feesYesOnly if the tenant agreed to them in the lease
Normal wear and tearNoNever (s.46(5))
Anything the lease does not coverNoClaim it through the RTDRS or court instead

Our conservative reading: if your lease does not say the deposit can be used for an item, do not take it from the deposit. Return the deposit and claim the cost separately, because a court asked to review the deposit decides deductions "in accordance with the conditions agreed to by the tenant" (s.46(4)(a)). The Alberta security deposit guide covers the one-month cap and the trust account.

What counts as normal wear and tear in Alberta?

Alberta's RTA defines normal wear and tear as "the deterioration that occurs over time with the use of the premises even though the premises receive reasonable care and maintenance" (s.46(1)(b)), and no deduction may be made for it (s.46(5)). The test is whether the condition comes from ordinary living over time or from an event or neglect.

  • Usually wear and tear: faded paint, light scuffs, carpet worn along walking paths, loose door handles from use, small nail holes from hanging pictures where the lease allows it.
  • Usually damage: holes in walls, burns or stains on carpet, broken blinds or windows, pet scratches through flooring, missing fixtures.

Age matters. A carpet near the end of its useful life has little value left, so charging the full cost of new carpet for one stain is hard to defend. Charge a fair share of the repair, and keep the invoice.

Pro Tip: Write the deposit conditions into the lease in plain words: rent owing, damage beyond normal wear and tear, cleaning to the move-in standard, and any agreed fees. A deduction the tenant never agreed to is the one most often lost at a hearing.

Why do inspection reports decide damage deductions?

Timeline of an Alberta deposit return: day 10 for the deposit or balance with a statement, day 30 for the final statement after an estimate

In Alberta, a landlord "shall not make a deduction from a tenant's security deposit for damages" unless the section 19 inspection report requirements were met (RTA s.46(6)), and the Government of Alberta says the same applies to cleaning costs. Without both reports, you cannot take damage or cleaning from the deposit, though you can still claim the cost through the RTDRS or the court.

The requirements are an inspection within one week before or after the tenant moves in and another within one week before or after the tenant moves out, each with a report describing the condition of the premises (s.19(1)-(2)). Each report must contain the prescribed statements and be signed in accordance with the regulation (s.19(5); AR 211/2004 s.4). You may inspect alone only after proposing two times on different days that are not holidays, between 8 a.m. and 8 p.m., when no adult tenant agrees to take part (s.19(3)). Keep each report for at least 3 years after the tenancy ends (s.19(6)). See move-in and move-out inspection reports in Alberta.

Unpaid rent is different. It is not a damage deduction, so it can come off the deposit even if the inspections were missed, as long as the lease lets the deposit cover rent.

How and when must the deposit be returned?

Within 10 days after the tenant gives up possession, an Alberta landlord must do one of three things (RTA s.46(2)):

  1. No deductions: deliver the full deposit, with any interest owing.
  2. Deductions known: deliver the balance, if any, with a statement of account showing the amount used.
  3. Deductions not yet known: deliver the part you will not use with an estimated statement of account, then deliver the remaining balance and a final statement within 30 days after the tenant gave up possession.

The Government of Alberta says the statement should list the damage, the repair costs, the details of any cleaning charges and any fees. "Deliver" means personal service, regular or registered mail, or another method agreed in writing (s.46(1)(a)), so ask the tenant for a forwarding address in writing. Interest owing under section 45 is part of the deposit (s.46(1)(c)); the rate for 2026 is 0%, after 0.5% in 2025 and 1.6% in 2024. See security deposit interest in Alberta.

Pro Tip: Waiting on a contractor's quote? Send the estimate route on day 10, not nothing. Returning the undisputed part on time keeps you inside section 46(2)(c).

A worked example

A tenant paid a $1,500 security deposit and moves out on May 31. Both inspection reports were done and signed, and the lease lets the deposit cover rent, damage and cleaning.

  • Rent owing for May: $200, deducted.
  • A broken blind, noted on the move-out report and not on the move-in report: $80, deducted with the invoice.
  • Worn carpet in the hallway after four years: $0, normal wear and tear.
  • Kitchen cleaning the lease requires, shown on the move-out report: $60, deducted.

The landlord delivers $1,160 and a statement of account listing each item by June 10. If the inspections had been skipped, only the $200 in rent could come off, and the $140 for the blind and cleaning would have to be claimed separately.

What if the tenant disagrees, or the costs exceed the deposit?

An Alberta tenant who disagrees can apply to the Residential Tenancy Dispute Resolution Service (RTDRS) or start an action in court to recover the deposit, whether or not a statement was delivered (RTA s.46(3); s.54.2(2)). In a court action, the court decides the deductions the landlord was entitled to under the conditions the tenant agreed to and gives judgment for the balance (s.46(4)).

If the damage or rent owing is more than the deposit, the landlord can claim the difference through the RTDRS or the court. Read RTDRS explained and RTDRS filing fees and the claim limit before you file.

Pro Tip: Attach the two inspection reports, dated photos and invoices to every statement of account. The same file is your evidence if the tenant applies to the RTDRS.

Frequently asked questions

Can an Alberta landlord keep the whole deposit for cleaning?

Only the actual, reasonable cost of cleaning the lease requires, and only if both inspection reports were done. Anything left over goes back to the tenant within 10 days with a statement of account.

Can I deduct for damage if I did not do a move-in inspection?

No. Section 46(6) bars damage deductions unless the section 19 inspection requirements were met. You can still claim the cost through the RTDRS or the court.

Is a pet deposit separate from the one-month cap in Alberta?

Treat it as part of the cap. Our conservative reading is that every deposit, including one called a pet or damage deposit, counts toward the one-month maximum in section 43(1), and the same deduction rules apply.

What happens if I miss the 10-day deadline?

The tenant can apply to the RTDRS or the court for the whole deposit or the part they claim (s.46(3)). Alberta has no automatic double-deposit penalty like BC, but the decision-maker can still award the tenant the balance.

Does the deposit include interest?

Yes. Interest owing under section 45 is treated as part of the security deposit at the end of the tenancy (s.46(1)(c)). For 2026 the prescribed rate is 0%.

The safest Alberta deposit is one with clear lease conditions, two signed inspection reports and a statement of account sent within 10 days. For the rest of the rules, see the Alberta landlord guide.

Alberta Deposit Deduction Checklist

What an Alberta landlord can keep from a security deposit, and how to return the rest (rules as of October 24, 2026).

Get Free PDF →
Worked example: a $1,500 deposit less $200 rent, $80 blind and $60 cleaning returns $1,160; worn carpet is not deducted

Keep every deduction defensible

Tenon10 creates Alberta leases, runs move-in and move-out inspection reports, and tracks each deposit and its 10-day return date.

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Written by

Founder & CEO, Tenon10

Syed is the founder and CEO of Tenon10, an AI-native property management platform built for Canadian landlords and property managers. Before Tenon10 he was a Senior Software Engineer at Morningstar and a developer at Canadian Tire Financial Services, and he has been building rental-management software since 2020. He writes about Ontario tenancy rules, rent increases and running a small rental portfolio well.

More from Syed Maqutadir Rehman

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