New Brunswick has some of the tightest security deposit rules in Canada. Under the Residential Tenancies Act RSNB 1975, c R-10.2, security deposits must be paid to the Office of the Rentalsman — not held by the landlord — and landlords may not demand more than one week's rent as a deposit for weekly tenancies or one month for monthly tenancies (with further limits for special cases). Before you sign a New Brunswick residential tenancy agreement, make sure you understand how to pay the deposit to the Rentalsman and how to recover it.
What is a Security Deposit?
A security deposit in New Brunswick is held by the Office of the Rentalsman, a provincial body within Service New Brunswick that administers the Residential Tenancies Act. The tenant pays the deposit directly to the Rentalsman, who holds it in trust during the tenancy.
Red flags to watch for
Under the Residential Tenancies Act, security deposits for most tenancies must be paid to the Rentalsman (or to the landlord who then remits to the Rentalsman within 15 days).
The statutory maximum is generally one month's rent for monthly tenancies and one week's rent for weekly tenancies — landlords cannot demand more.
A compliant lease will explicitly state the Rentalsman's role and the tenant's right to recover the deposit at tenancy end.
The Residential Tenancies Act is statutory and cannot be contracted out of. Waiver clauses are void.
A signed condition report at move-in is essential evidence for any deposit deduction claim at move-out.
The Rentalsman adjudicates deposit disputes. Landlords cannot unilaterally deduct from deposits they did not hold.
Your legal rights
The Residential Tenancies Act RSNB 1975, c R-10.2, governs deposits in New Brunswick. The Office of the Rentalsman (Service New Brunswick) holds deposits, mediates disputes, and issues binding orders on return or retention. Tenants have clear rights to recover deposits, with deductions only approved by the Rentalsman on evidence of damage or arrears. The Act overrides inconsistent lease terms.
Questions to ask before you sign
- 1How is the deposit being paid to the Rentalsman, and will you provide the receipt?
- 2Can we complete a signed move-in condition report together?
- 3What is the process for returning the deposit at the end of the tenancy?
- 4What are your rules for deductions, and how are disputes handled by the Rentalsman?
- 5Does this lease contain any waivers of the Residential Tenancies Act?
- 6How do I contact the Rentalsman if there is a dispute?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.