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Security Deposits and Last Month’s Rent: Rules by Province in Canada

Helping Propra users understand

Wyatt Rogi avatar
Written by Wyatt Rogi
Updated this week

I. Introduction

Understanding the rules around security deposits or last month’s rent is essential for both landlords and tenants in Canada. These payments help set financial expectations at the start of a tenancy, but the laws governing them vary widely across provinces and territories.

This article breaks down the key regulations by province, including what’s allowed, what’s not, and when interest or refunds are required, to help avoid disputes and ensure compliance with local laws.

II. Overview Table:

Province

Security Deposit

Last Month’s Rent

Pet Deposits

Interest Required?

Alberta

Max 1 Month’s Rent

Not allowed

Fee only

No

B.C.

Max 1/2 Month’s Rent

Allowed

Max 1/2 Month’s Rent

Yes

Ontario

Last month’s rent (not for damages)

Treated as a deposit, not for damages

Not allowed

Annually

Quebec

Not allowed

Not Permitted

Not allowed

N/A

Manitoba

Max 1/2 Month’s Rent

Not allowed

Allowed up to 1 month’s rent

Paid Annually

Saskatchewan

Max 1 month’s rent

Not separate from the security deposit

Permitted one-time deposit, separate from security deposit.

Must be paid at the end of the tenancy (If they are tenants for 5 years or longer)

Nova Scotia

Max 1/2 Month’s Rent

Not allowed

A landlord can't charge an additional deposit for pets.

0% Interest

New Brunswick

Max 1 month’s rent

Not separate

Not allowed individually

Paid Annually

NL & LA

Max ¾ month’s rent

Not allowed

Not allowed individually

Required

PEI

Max 1 month’s rent

Not allowed

Not allowed

It must be paid when the deposit is returned.

Territories

Max 1 month’s rent

Not allowed

Not allowed separately

Required and regulated by each territory

III. Provincial Breakdown

1. Alberta

  • Security Deposit: Max 1 month’s rent.
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    ​

  • Last Month’s Rent: Cannot be charged separately.
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    ​

  • Pet Deposit: Only a non-refundable pet fee is allowed.
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    ​

  • Interest: Must be held in a trust and interest calculated annually; rate set by province.
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    ​

2. British Columbia

  • Security Deposit: Max 1/2 month’s rent.
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    ​

  • Last Month’s Rent: Not permitted; only security deposit is allowed.
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  • Pet Deposit: Allowed, Pet Damage Deposit with interest.
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  • Interest: The Landlord must pay interest on the security deposit and pet deposit at the prescribed rate.
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    ​

3. Ontario

  • Security Deposit: Can only be used as last month’s rent (not for damages).
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    ​

  • Last Month’s Rent: Collected at lease signing; treated as deposit.
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  • Pet Deposit: Not allowed
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    ​

  • Interest: Required annually at a rate equal to the guideline increase.
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    ​

4. Quebec

  • Security Deposit: Not allowed.
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    ​

  • Last Month’s Rent: Not permitted.
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    ​

  • Pet Deposit: Not allowed.
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    ​

  • Interest: N/A.
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    ​

5. Manitoba

  • Security Deposit: Max 1/2 month’s rent.
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    ​

  • Last Month’s Rent: Not allowed.
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    ​

  • Pet Deposit: Allowed, up to 1 month’s rent (exceptions for service animals).
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    ​

  • Interest: Must be paid annually; the rate is set by the government.
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    ​

6. Saskatchewan

  • Security Deposit: Max 1 month’s rent.
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    ​

  • Last Month’s Rent: Not separate from security deposit.
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    ​

  • Pet Deposit: Permitted one-time deposit, separate from security deposit.
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    ​

  • Interest: Must be paid at the end of the tenancy (If they are tenants for 5 years or longer)
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    ​

7. Nova Scotia

  • Security Deposit: Max 1/2 month’s rent. You need to return the security deposit within 10 days of the last day of the tenancy.

  • Last Month’s Rent: Not allowed.
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  • Pet Deposit: A landlord can't charge an additional deposit for pets.
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    ​

  • Interest: No interest on SD anymore, 0%

8. New Brunswick

  • Security Deposit: Max 1 month’s rent.
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    ​

  • Last Month’s Rent: Not separate.
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  • Pet Deposit: Not allowed individually
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    ​

  • Interest: Must be paid annually; the government sets the rate.
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    ​

9. Newfoundland and Labrador

  • Security Deposit: Max ¾ month’s rent. You need to return the security deposit within 10 days of the last day of the tenancy.
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  • Last Month’s Rent: Not allowed.
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  • Pet Deposit: Not allowed individually
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  • Interest: Required; must follow set formula.
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10. Prince Edward Island

  • Security Deposit: Max 1 month’s rent. A landlord has 15 days from when a tenancy ends to make a determination regarding the security deposit.
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  • Last Month’s Rent: Not Allowed.
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  • Pet Deposit: No extra deposit for pets allowed.
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  • Interest: Must be paid when the deposit is returned.
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    ​

11. Northwest Territories, Yukon, and Nunavut

  • Damage Deposit: Max 1 month’s rent. (Can be paid over the first 3 months)
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  • Last Month’s Rent: Not allowed.
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  • Pet Deposit: Not allowed separately.
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  • Interest: Required and regulated by each territory.
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IV. Key Takeaways

  • Last month’s rent is typically only allowed in Ontario.
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  • Pet deposits vary widely; some provinces allow them, others don’t, and some only allow non-refundable fees.
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  • Interest rates are common, though the rate and method differ by province.
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  • Quebec is the most tenant-friendly in terms of upfront costs.

  • Landlords must also pay attention to the timeline for returning deposits, which can range from 7 to 15 days. Late returns could result in penalties.

  • Some provinces (e.g., Alberta, Manitoba) require landlords to hold deposits in a separate trust account.

V. Resources

Links to each province’s landlord-tenant legislation.

  • Encourage landlords and tenants to verify up-to-date laws.

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