NWT Security Deposit Rules: Caps, Timing, and Rent Increase Adjustments

The NWT has no cap on how much you can raise rent, but the Residential Tenancies Act caps almost everything else related to money you can collect from a tenant. Here is how the deposit rules work and where they intersect with rent increases.

Security Deposit Maximum

For a tenancy other than a weekly tenancy, the security deposit cannot exceed one month's rent. For a weekly tenancy, it cannot exceed one week's rent. If rent is $2,500 per month, the maximum deposit is $2,500. For subsidized public housing and employer-provided housing at subsidized rent, the deposit may be calculated using the market-value rent.

For a tenancy other than a weekly tenancy, the tenant may pay 50% of the deposit at the start and the remaining 50% within three months. The Act does not provide this split-payment option for weekly tenancies.

Pet Security Deposit

Under Section 14.1 of the RTA, a pet security deposit is capped at 50% of one month's rent for tenancies other than weekly ones, or 50% of one week's rent for weekly tenancies, regardless of the number of pets. For a $2,500 monthly rent, the maximum pet deposit is $1,250. For subsidized public housing and employer-provided housing at subsidized rent, it may be calculated using the market-value rent.

What You Cannot Collect

Sections 3, 13, 14.2, and 35 of the RTA address charges and conduct that landlords in other jurisdictions might consider routine:

• Advance rent — you cannot require rent before the date specified in the tenancy agreement.
• Application or screening fees — you cannot require an additional amount as a condition of entering a tenancy agreement.
• Key deposits — you cannot require an additional amount as a condition of entering a tenancy agreement, other than the authorized security or pet security deposit.
• Rent seizure — Section 35 prohibits seizing a tenant's personal property for unpaid rent.

Section 14.2 prohibits requiring or receiving other amounts as a condition of entering a tenancy agreement, beyond the authorized security and pet security deposits. The specific rules for accelerated rent and seizure of tenant property are in Sections 13 and 35.

Deposits After a Rent Increase

When rent goes up, the security deposit cap adjusts with it. If the original deposit was $2,000 (based on $2,000/month rent) and you raise rent to $2,400, the maximum deposit becomes $2,400. However, the RTA does not grant an automatic right to top up the security deposit after a rent increase — the deposit was collected at the start of the tenancy, and its amount is fixed at that point.

The pet deposit cap similarly recalculates based on the new rent, but the same limitation applies: there is no automatic mechanism to demand additional funds.

Trust Account and Return Rules

Security and pet deposits and their interest must be kept separate from the landlord's money and held in trust. The landlord must deposit them in a trust account at a bank in the Northwest Territories. Within 10 days after the tenant vacates, the landlord must return the deposit or, if withholding any part, give written notice and an itemized account and return the balance. If repair costs cannot be determined within 10 days, the landlord must provide an estimate then and a final account and balance within 30 days; significant damage can extend that period to 45 days. Interest is calculated according to the GNWT statutory schedule (published annually — the 2026 schedule was published January 23, 2026).

Deductions for actual damage (beyond normal wear and tear) must be documented with an itemized statement. If the landlord breaches the deposit rules, a Rental Officer may order return of all or part of the deposit owing, including interest.

The Connection to Rent Increases

Deposit rules matter during a rent increase because tenants who feel financially squeezed may push back harder on procedural details. Attempting to collect prohibited charges — advance rent, screening fees, or an extra deposit — alongside a rent increase notice is both illegal and likely to trigger a Rental Office complaint that puts your entire notice under scrutiny.

The Northwest Territories Rent Increase Guide covers the full compliance process including how deposit and advance-rent rules interact with the Section 47 increase procedure.

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