Saskatchewan Security Deposit Laws: Limits, Returns, and Deductions

Saskatchewan's security deposit rules are outlined in The Residential Tenancies Act, 2006 and provide clear protections for both landlords and tenants. Understanding these rules is critical for every Saskatchewan landlord to avoid disputes and potential penalties through the Office of Residential Tenancies (ORT).

Security Deposit Limits

Maximum Amount

The maximum security deposit a landlord can collect in Saskatchewan is one month's rent. This is a hard cap that cannot be exceeded under any circumstances.

No Stacking of Deposits

Landlords cannot charge separate deposits (such as pet deposits, key deposits, or damage deposits) that, when combined with the security deposit, exceed the total of one month's rent. Any attempt to collect more than this amount is a violation of the Act.

Payment Schedule

Tenants are entitled to a flexible payment schedule:

This means landlords cannot demand the full security deposit upfront before the tenant takes possession.

Saskatchewan Assistance Plan (SAP) Guarantee

A guarantee letter from social services (such as the Saskatchewan Assistance Plan) is considered a valid security deposit. Landlords cannot refuse to accept it, though they may require the tenant to cover any difference if the guarantee does not meet the full deposit amount.

Trust Account Requirements

Landlords must hold the security deposit in one of the following:

1. A trust account at a financial institution (bank, credit union, or trust company)
2. Securities authorized by The Trustee Act, 2009

The deposit remains the tenant's property at all times. It is not the landlord's money to use.

Interest on Deposits

Interest on security deposits is payable to the tenant only for tenancies lasting longer than five years. Interest accrues up to 30 days after the tenancy ends.

Allowable Deductions

Landlords may deduct from the security deposit for:

1. Unpaid rent — any rent owed at the end of the tenancy
2. Unpaid utilities — if the tenant was responsible for utility payments
3. Damage beyond normal wear and tear — tenant-caused damage to the unit
4. Early lease termination costs — if the tenant broke the lease early
5. Cleaning costs — to restore the unit to its move-in condition

What is NOT Deductible

• Normal wear and tear — faded paint, minor carpet wear, small nail holes
• Pre-existing damage — conditions documented before move-in
• Improvements or upgrades — costs to improve the unit beyond its original condition

Return Deadline: 7 Business Days

After the tenancy ends, landlords have 7 business days (excluding weekends and statutory holidays) to either:

1. Return the full deposit to the tenant, OR
2. Provide a written notice detailing the deductions being claimed

This is one of the shortest deposit return windows in Canada. Missing this deadline may result in the landlord losing the right to make any deductions.

Disputing Deductions

If a tenant disagrees with the landlord's deductions, they can file an application with the Office of Residential Tenancies (ORT) within 60 days of the tenancy end date. A $50 filing fee applies to such applications.

The ORT will schedule a hearing where both parties can present evidence. The hearing officer will issue a binding decision.

Last Month's Rent

A tenant cannot use the security deposit as payment for the last month's rent unless there is a specific written agreement with the landlord allowing this. This is a common misconception that landlords should address in their lease agreements.

Best Practices for Landlords

1. Conduct thorough move-in and move-out inspections — Take dated photos and videos and have the tenant sign a condition report
2. Open a dedicated trust account — Keep security deposits separate from operating funds
3. Track the 7-business-day deadline — Set calendar reminders immediately when a tenant gives notice
4. Document everything — Keep receipts for any cleaning or repairs deducted from the deposit
5. Use the proper ORT forms — Ensure all notices and claims use approved forms
6. Never exceed the one-month cap — Including any supplementary deposits (pet, key, etc.)

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How Landager Helps

Managing properties in Saskatchewan demands strict adherence to the Residential Tenancies Act, 2006, especially given unique rules like the split 6-to-12-month notice variations for rent increases depending on association membership. The lack of standard rent caps makes proper scheduling even more critical for sustainable property management. Landager's comprehensive platform protects Saskatchewan landlords by automating tracking for the precise 15-day arrears window before a Form 4 can be strictly and legally served, ensuring your compliance aligns perfectly with ORT expectations. From holding security deposits to facilitating swift communication via official notices, Landager provides a comprehensive digital safety net that shields your rental business from the administrative complexities and potential liabilities evaluated by the Office of Residential Tenancies.