In New Brunswick, landlords are legally prohibited from keeping tenant security deposits in their personal bank accounts. You must remit the entire deposit amount to the Service New Brunswick (SNB) Rentalsman / Residential Tenancies Tribunal within 15 days of receiving it. Failure to do so can result in significant legal fines.
Being a landlord in New Brunswick comes with specific financial regulations that differ significantly from other Canadian provinces. Whether you are managing a duplex in Miramichi, renting out a basement suite in Moncton, or operating a large apartment building in Saint John, you must strictly adhere to the provincial rules regarding damage deposits.
Unlike provinces where landlords hold the deposit in a separate trust account, New Brunswick uses a centralized government system. The Residential Tenancies Tribunal (RTT) holds all security deposits securely. 🔒 This prevents landlords from wrongfully spending the money and guarantees the tenant a fair, neutral dispute resolution process if damage claims arise at the end of the tenancy. If you have questions about handling complex deposit disputes, it is wise to consult a local property lawyer.
Step-by-Step Process in New Brunswick
Remitting a deposit to the province is a straightforward administrative task, but it must be done promptly. Landlords must follow these exact steps to remain compliant with the Residential Tenancies Act.
Step 1: Collect the Correct Amount
When signing the lease, you may request a security deposit from your new tenant. By law, this amount can absolutely never exceed the equivalent of one month’s rent. 💵 You cannot demand an additional ‘pet deposit’ or ‘key deposit’. Once you receive the funds, you have a strict 15-day window to send it to the government.
Step 2: Access the SNB Portal
The most efficient way to remit the funds is online. Landlords should visit the official Service New Brunswick (SNB) website and access the Residential Tenancies online portal. If you are a new landlord, you will need to create a secure account, which allows you to manage all your current properties and deposits from one digital dashboard.
Step 3: Complete the Security Deposit Remittance Form
Within the portal, fill out the online Remittance Form. You must provide the exact address of the rental unit, the tenant’s full legal name, the start date of the tenancy, and the exact amount collected. 📝 Accuracy is critical here to ensure the deposit is properly linked to the correct tenant when they eventually move out.
Step 4: Transfer the Funds to SNB
You can pay the deposit into the SNB system using a credit card, debit card, or standard online banking. Alternatively, if you prefer not to use the internet, you can physically take a cheque or money order directly to any local Service New Brunswick centre.
Step 5: Provide a Receipt to the Tenant
Once the funds are remitted, the SNB system will generate an official receipt. It is your legal responsibility as the landlord to provide a copy of this official receipt to the tenant, proving that their money is safely held by the province. 🧾
How Much Does it Cost in New Brunswick?
There are no government processing fees for remitting or requesting the return of a security deposit. The service is provided entirely free of charge to both landlords and tenants.
| Action | Associated Cost (CAD) |
|---|---|
| Maximum Allowed Deposit | 1 Month’s Rent |
| SNB Remittance Processing Fee | $0 (Free) |
| Fines for Failing to Remit | Up to $5,000+ per offence |
| Dispute Resolution via RTT | Free for both parties |
It is critical to note that if a landlord gets caught keeping the deposit in their personal account, the Tribunal may issue administrative penalties and standard fines that far exceed the value of the deposit itself. 🚨
How Long Does the Process Take?
As a landlord, you are legally mandated to submit the deposit to SNB within exactly 15 days of physically receiving the funds from the tenant. At the end of the tenancy, if the tenant requests their deposit back and the landlord does not file a claim for damages, the RTT generally returns the funds to the tenant within 7 to 15 business days.
Frequently Asked Questions (FAQ)
What happens if the landlord refuses to submit the deposit?
If a tenant discovers their landlord kept the money, they can file a complaint with the Residential Tenancies Tribunal. The Tribunal will investigate and legally compel the landlord to hand over the funds, potentially issuing heavy fines.
Can the security deposit be used to pay the last month’s rent?
No. In New Brunswick, the security deposit is held by the government strictly for damages or unpaid rent after the tenancy ends. A tenant must pay their last month’s rent as normal.
How does a landlord claim money for damages?
When the lease ends, the landlord must submit a formal ‘Claim Against a Security Deposit’ to the RTT within 7 days. You must provide evidence, such as move-in/move-out inspection reports and receipts for repair materials.
Does the deposit earn interest while held by the province?
As of recent legislative updates in New Brunswick, security deposits held by the Rentalsman generally do not accumulate interest to be paid out to the tenant upon moving out.
Can a landlord ask for an additional deposit if they buy new appliances?
No. The total amount held by the province can never exceed the equivalent of one month’s rent, regardless of any upgrades made to the rental unit during the tenancy.
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