is a security deposit?
A security deposit is
money or property given by a tenant to a landlord on or before moving
in. The landlord holds the security deposit for the length of the rental
much money can a landlord charge for a security deposit?
A landlord can ask
for a security deposit up to one month's rent if the rent is paid
monthly, or up to one week's rent if rent is paid weekly.
happens to the security deposit if the premises are sold?
It is the
responsibility of the landlord to pass on the security deposit to the
new landlord. The new landlord will be responsible for returning the
funds to the tenant at the end of the rental agreement.
the landlord have to return the security deposit to the tenant after the
unit has been vacated?
After a tenant moves
out, a landlord has 10 days to return the security deposit, with
applicable interest, or serve the tenant with a Notice of Intention to
Retain Security Deposit. If a landlord believes he should keep the
security deposit, he must provide details on the Notice of Intention to
Retain Security Deposit as to why and how much is being kept. In order
to receive this Notice, the tenant should provide a forwarding address
to the landlord when he moves out.
What can a tenant do if he does not
agree with the reasons on the Notice of Intention to Retain Security
If a tenant does not agree with the landlord's reasons, he has
15 days to file an application with the Director.
can a tenant do if a forwarding address was provided and the landlord
does not return the security deposit or send a Notice of Intention to
Retain Security Deposit?
In this situation,
the tenant can contact the Office
of the Director of Residential Rental Property about filing an
are some reasons a landlord may keep a security deposit?
A landlord may keep
all or part of a security deposit if:
the tenant did not
clean before moving out;
the tenant has
damaged the unit beyond normal wear and tear;
the tenant owes
rent to the landlord.
Either party should
contact the Office of the Director of Residential Rental Property if
they require further explanation.
tenant hold the keys until the landlord returns the security deposit?
No. If a tenant does
not return the keys the landlord may charge for changing the locks and
in some cases, charge rent for each day the tenant has the keys.
a landlord have to pay interest on a security deposit?
Yes. Please contact
the Office of the Director of Residential Rental Property to obtain the
rates of interest for each year or visit our website at
Should a tenant and landlord take pictures after the apartment is
cleaned or vacated?
This is a good idea.
Whenever there is a dispute regarding cleanliness or damages, tenants
and landlords may need to present pictures, video tape, receipts or
evidence by witnesses at a hearing to substantiate their claims.
can a landlord do if a tenant has caused damages to a rental unit but
has not paid a security deposit?
The landlord will
have to pursue any action for damages with the Small Claims Division of
the Supreme Court of Prince Edward Island.
tenant get the security deposit back if he changes his mind and does not
No, in most cases.
However, it would be advisable for either party to contact the Office of
the Director of Residential Rental Property to discuss their particular
landlord terminate a rental agreement if the tenant does not pay a
Yes. A landlord may
serve a tenant with a Notice of Termination if the tenant did not pay
the requested security deposit within 30 days of entering into a rental
|The information in this
pamphlet is intended as a guide for landlords and tenants under the
Rental of Residential Property Act. Further information can be
obtained at the Office of the Director of Residential Rental
Property on the 5th Floor, National Bank Tower, 134 Kent Street,
Charlottetown. Copies of the Act and forms can also be obtained at
any Access PEI office or online at
Our telephone number is (902) 892-3501 or 1-800-501-6268.
Office of the Director of Residential
Suite 501, 5th Floor
National Bank Tower
134 Kent Street, PO Box 577
Charlottetown, PE C1A 7L1
T 902-892-3501 or 1-800-501-6268
Guide is also available in PDF format.
Page last reviewed or updated:
Friday, January 10, 2014