Security Deposits

Landlords cannot require or receive a security deposit from a tenant that exceeds:

• one week's rent for weekly tenancies; or

• one month's rent for tenancies that are longer than a week.

If a tenant is required to pay a security deposit, they can pay 50% at the beginning of the tenancy and the remaining 50% within three months of the start of the tenancy.

Pet Deposits

Landlords cannot require or receive a pet deposit from a tenant unless the tenant keeps or intends to keep a pet on the rental premises.

In the case of a pet deposit, the amount cannot exceed:

• 50% of one week's rent for weekly tenancies; or

• 50% of one month's rent for tenancies longer than a week.

Landlords can only require a pet deposit that is calculated on the market-value rent of the rental premises for subsidized public housing or rental premises provided by an employer at a subsidized rent.

Landlords cannot require or receive more than one pet deposit in respect of the rental premises, regardless of the number of pets that the landlord has agreed the tenant may keep on the rental premises.

Inspections

A landlord or their agent must inspect the property and its contents at the start of the rental period and offer the tenant the opportunity to participate in the inspection.

If the tenant wants to get a pet during the rental period, and the landlord requires a pet deposit, they must inspect the property when the tenant gets the pet and offer the tenant the chance to participate.

The landlord must also prepare an entry inspection report, which may be in an approved form, sign it, and provide the tenant a copy within five days after the inspection.

The landlord must keep the report for at least 18 months after the tenant vacates the property and make it available to a rental officer if requested.

Deposits Returned

Landlords must calculate interest on the deposit at a rate determined by regulations and credit the interest to the tenant's account annually. The interest must be credited to the tenant until they move out or abandon the rental property.

Landlords are required to keep all security deposits, pet deposits, and interest separate from their own money and hold them in trust.

When a tenant moves out, the landlord or their agent must conduct an inspection of the rental property to check its condition and contents.

They must offer the tenant reasonable opportunities to participate in the inspection. If the tenant abandons the rental property, the landlord must conduct an inspection within one week of finding out and may do so with or without the tenant.

After the inspection, the landlord or agent must prepare an exit inspection report, sign it, and provide the tenant with an opportunity to include comments in the report and sign it. The report may be in an approved form.

Note: If a tenant leaves a security deposit or pet security deposit with their landlord and doesn't claim it within a year after moving out, the landlord is not required to return it. However, if the landlord has made reasonable efforts to locate the tenant during that year but is unable to find them, they are not obligated to return the deposit.

NWT RTA s.14