If a tenant gives the landlord any extra money besides the rent, it is considered a security deposit.

The security deposit cannot be more than half of the monthly rent.

The security deposit must follow the following rules:

• The landlord must keep the security deposit in a separate bank account or invest it in authorized securities. It can only be used for unpaid rent or damage caused by the tenant.

• The landlord must pay interest on the security deposit at a rate set by the government.

• The security deposit and interest must be returned to the tenant within 10 days of the lease ending.

• If the landlord wants to use the security deposit for unpaid rent or damage caused by the tenant, and the tenant doesn't agree, the landlord can make an application to do so.

  • Tenants cannot be charged for ordinary wear and tear on the property.

  • If no application is made, the security deposit must be returned to the tenant.

• The owner, partner, or director of a company that owns or manages residential properties is personally responsible for any breaches of this law.

• If there is a change in ownership of the rental property, the new owner or trustee is responsible for the security deposits.

• Tenants cannot be charged for ordinary wear and tear on the property.

• Landlords who break these rules can be fined up to $5,000.

NS RTA s.12