NWT Security Deposit Return at End of Tenancy: Rules for Landlords

The One-Month Cap

Under Section 14 of the NWT Residential Tenancies Act, a landlord may collect a security deposit of up to one month's rent for a monthly tenancy or one week's rent for a weekly tenancy. The tenant has the right to pay half at the start and the remaining half within three months.

There is no government-held custodial deposit scheme in the Northwest Territories. Landlords hold the deposit directly and must keep it separate and in trust.

Interest Obligations

Landlords must accrue interest on the deposit annually using the rate published in the GNWT Security Deposit Interest Rate Schedule. The current schedule was issued January 23, 2026 and is available from the NWT Rental Office portal. The interest compounds over the tenancy and is owed to the tenant on top of the principal when the deposit is returned.

The 10-Day Return Deadline

Within 10 days after the tenant vacates or abandons, the landlord must return the deposit with an itemized statement or give written notice of an intended withholding and return the balance. If repair costs are not yet known, Section 18 allows an estimate within 10 days and a final account within 30 days, extended to 45 days for significant damage. Missing this deadline exposes you to a Rental Officer application from the tenant — and the Rental Officer can order full repayment plus costs.

Inspection Reports Are Non-Negotiable

For tenancies entered into on or after September 1, 2010, Section 18(5) bars a landlord from retaining a deposit for repairs of damage if either the entry or exit inspection report was not completed, or the tenant was not given a copy of each report without a reasonable excuse accepted by the Rental Officer. Section 18(4) separately permits retention for rent arrears.

The landlord must offer the tenant reasonable opportunities to participate in the entry inspection and provide a copy within five days after that inspection. An exit inspection at the end of the tenancy documents the condition for comparison, and its report copy is due within five days after the inspection. The Section 18(5) restriction concerns deductions for repairs of damage, not rent arrears.

What You Can Deduct

Lawful deductions from a deposit include unpaid rent, damage beyond normal wear and tear (documented by inspection reports and repair invoices), and cleaning costs where the tenant left the unit in a condition materially worse than move-in. Every deduction must appear on the itemized statement with supporting documentation.

Normal wear and tear — scuffed floors from ordinary foot traffic, faded paint from sunlight, minor nail holes — is not deductible. The NWT Rental Office publishes a Useful Life Policy (April 4, 2025) that guides how depreciation affects damage claims for items like carpets and appliances.

When a Deposit Dispute Reaches the Rental Officer

If you and the tenant disagree on deductions, either party can file an application with the NWT Rental Officer. The $100 landlord filing fee applies ($20 for tenants). The Rental Officer will examine your inspection reports, receipts and the itemized statement, then issue a binding order.

Landlords who cannot produce entry inspection documentation consistently lose these disputes. The Section 18(5) restriction has an exception where the Rental Officer accepts a reasonable excuse for not providing report copies.

Getting the Deposit Right From the Start

The deposit return process actually begins on move-in day. If you are ending a tenancy in the Northwest Territories, having your inspection paperwork in order is the single most important factor in protecting your deposit claim. Our NWT ending a tenancy guide walks through the full compliance timeline, including the inspection and deposit workflow, so nothing gets missed.

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