Limits on Security deposit

A landlord must not require or accept a security deposit that is:

• in the case of a tenancy on a weekly basis, greater than the equivalent of one week’s rent under the tenancy agreement; or

• in the case of a tenancy other than a tenancy on a weekly basis, greater than the equivalent of one month’s rent payable under the tenancy agreement.

If a landlord accepts a security deposit that is greater than the amount permitted, the tenant may deduct the overpayment from rent or otherwise recover the overpayment.

Return of Security Deposit

Within 15 days after the later of the date the tenancy ends and the date the landlord receives the tenant’s forwarding address in writing, the landlord must do one of the following:

• repay any security deposit to the tenant with interest calculated in accordance with the regulations; or

• make an application for dispute resolution claiming against the security deposit.

• A landlord may retain from a security deposit an amount that:

  • the director has previously ordered the tenant to pay the landlord; and

  • at the end of the tenancy remains unpaid.

• A landlord may retain an amount from a security deposit if:

  • at the end of the tenancy, the tenant agrees in writing that the landlord may retain the amount to pay a liability or obligation of the tenant; or

  • after the end of the tenancy, the director orders that the landlord may retain the amount.

• If a tenant does not give a landlord a forwarding address in writing within six months after the end of the tenancy:

  • the landlord may keep the security deposit; and

  • the right of the tenant to return the security deposit is extinguished

YK RLTA s.16, 17, 42