New Brunswick Security Deposit Return at End of Tenancy

When a tenancy ends in New Brunswick, the security deposit does not simply go back to the tenant or stay in your pocket. The province has a unique system where deposits are held by the Residential Tenancies Tribunal, not the landlord — and how the deposit is handled at the end of the tenancy depends on whether there are legitimate claims for damage or unpaid rent.

The Deposit Is Not Yours to Hold

Under Section 8 of the Residential Tenancies Act, a landlord who collects a security deposit must remit the funds to the Tenant and Landlord Relations Office within 15 days of receipt. The deposit is capped at one month's rent (or one week's rent for weekly tenancies; mobile home site deposits may be up to three months' rent).

This is not optional. Failing to remit the deposit to the Office within 15 days is a statutory violation, and it will undermine any future Tribunal application — including an eviction proceeding.

What Happens When the Tenancy Ends

When the tenant vacates, the Tenant and Landlord Relations Office manages the deposit return. The tenant must apply to have the deposit returned. If there are no claims from either party, the deposit is returned to the tenant; interest earned on deposits held by an RTO is paid into the Province’s Consolidated Fund.

If the landlord believes the tenant caused damage beyond normal wear and tear, or if rent remains unpaid, the landlord must submit a Security Deposit Claim to the Office within seven days of the end of the tenancy. The Residential Tenancies Officer reviews the claim and the parties’ evidence and decides how the deposit is distributed.

What Counts as Legitimate Damage

Normal wear and tear — faded paint, minor scuffs on floors, worn carpet in high-traffic areas — is not deductible. Landlords can claim for:

• Holes in walls beyond standard picture-hanging marks
• Broken fixtures, doors, or windows
• Stains or burns that require professional cleaning or replacement
• Missing items that were part of the furnished unit
• Cleaning costs when the unit is left in a condition substantially below the standard at move-in

Document the unit's condition at the start and end of the tenancy with dated photographs and a written condition report. The Tribunal relies on comparative evidence — a "before and after" showing the specific damage.

The Tenant's Recourse

If a landlord does not release the deposit or makes unjustified claims, the tenant can file an Application for the Return of the Security Deposit and inform the Office that they disagree with the claim. The Office will explain the hearing process.

How Deposits Interact With Evictions

If you are ending a tenancy for nonpayment and the tenant owes several months of rent, the security deposit does not automatically offset the arrears. The deposit is a separate statutory fund managed by the Tribunal. You can apply to have it applied against unpaid rent, but only through the Tribunal's formal process — you cannot deduct it unilaterally.

Similarly, if you are terminating for personal use or renovation, the deposit follows its normal return process regardless of the termination ground.

The Ending a Tenancy in New Brunswick guide covers the deposit handling process alongside the termination steps, so you know exactly what documentation to prepare for the Tribunal when the tenancy ends.

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