Saskatchewan Security Deposit Laws: Limits, Returns, and Deductions

Saskatchewan's security deposit rules are governed by The Residential Tenancies Act, 2006 (effective 18 June 2007) 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, as stipulated in Section 25 of the Act. 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

Under Section 25(2), 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. Under the Saskatchewan Human Rights Code, landlords cannot refuse a tenant solely because they use a social services guarantee.

Trust Account Requirements

Per Section 26, landlords must hold the security deposit in trust and deposit it into a trust account at a financial institution (bank, credit union, or trust company) within two days of receipt. Alternatively, they may hold 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

Under Section 28, no interest is payable on a security deposit for the first five years of a tenancy. For tenancies lasting five years or longer, interest is payable at the prescribed rate (currently 0% for 2024-2026) and accrues until 30 days after the tenant vacates.

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, under Section 31, landlords have 7 business days (excluding weekends and statutory holidays) to either:

1. Return the full deposit (with interest if applicable) to the tenant, OR
2. Serve the tenant with a written notice (Form 11: Notice of Landlord’s Intention to Retain Security Deposit) detailing the deductions being claimed.

If the landlord fails to serve the notice within 7 business days or fails to apply to the ORT within 10 business days (if required), the landlord is not entitled to retain any portion of the security deposit and must return the full amount to the tenant immediately.

Disputing Deductions

In Saskatchewan, the landlord is responsible for initiating a dispute if the tenant does not agree to deductions. If the landlord serves a notice and the tenant does not consent in writing to the deductions, the landlord must apply to the ORT for an order to retain the deposit within 10 business days after the tenant vacates.

A $50 filing fee typically applies to such applications. The ORT will schedule a hearing where both parties can present evidence, and 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 — Use the prescribed Condition Report forms and take dated photos.
2. Open a dedicated trust account — Keep security deposits separate from operating funds and deposit them within two days of receipt.
3. Track the 7 and 10-business-day deadlines — Set calendar reminders immediately when a tenant gives notice. You must serve notice within 7 days and apply to the ORT within 10 days if written consent is not obtained.
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 (e.g., Form 11 for Notice of Claim).
6. Never exceed the one-month cap — Including any supplementary deposits (pet, key, etc.).

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How Landager Helps

Managing security deposits in Saskatchewan requires precision, especially regarding the strict 7-business-day return window mandated by the Residential Tenancies Act, 2006. Landager simplifies this high-pressure deadline by automating move-out workflows and generating the required ORT-compliant claim notices if deductions are necessary. Our platform ensures your trust account records are audit-ready and that your total deposit collection—including pet or specialty fees—remains within the one-month statutory limit. By providing digital condition reports and automated interest calculations for long-term tenancies, Landager helps you maintain 100% compliance with the Office of Residential Tenancies, protecting your rental business from administrative penalties and return-of-deposit disputes.