In New Brunswick, security deposits are held by Service New Brunswick (SNB), not the landlord. If a landlord wishes to claim funds for property damage after a tenant moves out, they must submit a formal claim to the Residential Tenancies Tribunal (RTT) within exactly 7 days of the tenancy ending.
Moving out of a rental unit is often a stressful transition, whether you are leaving a historic apartment in Saint John, a modern condo in Moncton, or a family home in Fredericton. One of the most frequent sources of friction between landlords and tenants is the handling of the security deposit.
Unlike many other provinces where landlords hold the deposit in their own trust accounts, New Brunswick has a unique system. All security deposits must be submitted to the provincial government. Understanding how this system works is essential for resolving disputes efficiently and protecting your financial rights. 💰
Step-by-Step Process in New Brunswick
When a tenancy concludes, the return of the deposit is not automatic. The process involves specific deadlines and requires coordination with the Residential Tenancies Tribunal (RTT). Here is how the process generally unfolds.
Step 1: The Move-Out Inspection
The foundation of any successful deposit dispute resolution is evidence. On the final day of the tenancy, the landlord and tenant should walk through the empty unit together to complete a written condition report.
Both parties should take numerous date-stamped photographs of the walls, floors, appliances, and general cleanliness. Comparing the move-out condition report to the original move-in report provides clear proof of whether any new damage occurred.
Step 2: The Tenant Applies for the Return
Once the keys are handed over, the tenant must formally apply to Service New Brunswick (SNB) to have their deposit returned. This can be done online through the SNB portal or by visiting a local registry office. 💻
It is crucial for the tenant to provide their new forwarding address so the government knows where to mail the cheque if the application is successful.
Step 3: The Landlord Submits a Claim for Damages
If the landlord discovers damage that exceeds normal wear and tear, they do not simply keep the money. The landlord must file a formal “Claim Against a Security Deposit” with the Residential Tenancies Tribunal.
This is a strict deadline. The landlord has exactly 7 days from the date the tenancy ends to submit this claim. If they miss this window, SNB will generally return the full deposit to the tenant, regardless of the damage.
Step 4: RTT Investigation and Mediation
If the landlord files a claim on time, the RTT will notify the tenant, who then has the opportunity to dispute it. A Residential Tenancies Officer will review the evidence provided by both sides, including photos, cleaning receipts, and the condition reports. 💼
The Officer acts as an impartial adjudicator. They will determine what portion of the deposit, if any, should be awarded to the landlord for repairs, and what portion should be returned to the tenant.
How Much Does it Cost in New Brunswick?
Financial expectations surrounding security deposits are strictly regulated by the province. Knowing the limits can help you avoid unnecessary legal fees.
| Financial Aspect | Amount / Cost (CAD) | Description |
|---|---|---|
| Maximum Security Deposit | 1 Month’s Rent | Landlords cannot legally ask for more than one month of rent upfront as a deposit. |
| RTT Dispute Filing Fee | Free ($0) | Submitting a claim or disputing a claim through the RTT does not cost any government fees. |
| Lawyer Consultation | $250 – $500 | Optional legal advice if the damage is severe and exceeds the deposit amount. |
- Pet Deposits: New Brunswick law does not allow landlords to charge a separate “pet deposit.” The total of all deposits combined cannot exceed the equivalent of one month’s rent.
- Excess Damages: If a tenant causes $3,000 worth of damage but the deposit was only $1,000, the landlord can use the RTT process to claim the $1,000. For the remaining $2,000, the landlord may need to file a lawsuit in the Court of King’s Bench or Small Claims Court.
How Long Does the Process Take?
Timeframes in deposit disputes are very rigid. The landlord has 7 days after the move-out date to file their claim with the RTT.
If no claim is filed by the landlord, and the tenant applies for their refund, Service New Brunswick typically processes and mails the cheque within 2 to 3 weeks. However, if the landlord disputes the return and the RTT must investigate the damages, the process can take anywhere from 4 to 8 weeks while the Officer gathers evidence and makes a final ruling.
Frequently Asked Questions (FAQ)
What qualifies as “normal wear and tear”?
Normal wear and tear refers to the natural deterioration that occurs when someone lives in a property. This includes minor scuffs on the wall, slightly worn carpets in high-traffic areas, or faded paint. Landlords cannot claim deposit money for these natural aging processes.
Can a landlord keep the deposit for unpaid rent?
Yes. If the tenant moves out while still owing arrears, the landlord can apply to the RTT within the 7-day window to have the security deposit applied toward the unpaid rent.
What happens if the landlord misses the 7-day deadline?
If the landlord fails to submit their claim to the RTT within 7 days, they lose the right to claim the deposit held by SNB. The funds will be returned to the tenant. However, the landlord still retains the right to sue the tenant for damages in regular civil court.
Do I get interest back on my security deposit?
Historically, SNB paid a small amount of interest on deposits. However, due to extremely low regulated rates, the interest accrued is often negligible or zero. You primarily receive the principal amount back.
Do I need a lawyer for an RTT hearing?
No. The Residential Tenancies Tribunal is designed to be accessible to the public. You can represent yourself simply by providing clear photos, receipts, and condition reports. Hiring a law firm is generally only necessary for extremely complex or high-value damage cases.
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