The amount of the security deposit cannot be more than a certain percentage of the rent, depending on the rental period. If the landlord receives more money than the amount of rent, it is considered a security deposit.

The landlord must provide a written receipt of the security deposit, deposit it in an interest-bearing account, and credit interest to the tenant.

The security deposit is held in trust and can only be used or disbursed in certain ways.

When the tenant vacates the property, the landlord must return the security deposit unless they have a claim for all or part of it.

If there is a dispute over the security deposit, the landlord and tenant can agree on the disposition of the deposit or apply to a director to determine its disposition.

If the landlord does not make an application or return the deposit, the director may order the landlord to return it.

NL Residential Tenancy Act s.14