Tenants pay a security deposit before they move in. The security deposit is, at most, the same amount as the first month’s rent. The Landlord can deduct money from the security deposit for items the tenant is liable for at the end of the tenancy. This can include rent arrears, cost of repairs for damage caused by the tenant and cost of cleaning for items that are beyond normal wear and tear. The security deposit goes into a trust account until the tenant moves out. Interest is compounded annually and paid out at the end of the lease agreement.
The new interest rate starts January 1st and stays the same for the year. The Security Deposit Interest Rate
Regulation includes a formula that sets the yearly interest rate at 3% below the interest rate on November 1st of the previous year for cashable one-year guaranteed investment certificates from ATB Financial.
The interest rate can be found https://www.servicealberta.ca/interest-chart.cfm
Return of Security Deposit
After a tenant moves out, the security deposit will be returned, with and applicable interest if:
▪ the rent is paid up to date, in full;
▪ there are no charges on the move-out Accommodation Inspection Report for cleaning and/or repairs.
▪ there are no unpaid charges on the tenant’s account for rent, maintenance, parking and/or
▪ there are no other outstanding charges.
It is important for tenants to give Wood Buffalo Housing their forwarding address when they move so that any refunds can be returned.