A landlord may request that a tenant pay a security deposit at the beginning of a tenancy. The security deposit is intended to compensate a landlord for:

• damage a tenant does to a suite beyond normal wear and tear,
• any unpaid rent or bills, and
• any costs to the landlord if the tenant vacates without proper notice.

A security deposit cannot be more than half a month's rent and a landlord cannot ask for an extra deposit if the rent is increased.

At the end of a tenancy, a landlord must return a tenant's security deposit with interest, minus any deductions. Security deposit interest is calculated based on interest rates found in the following table:

01-Jan-95	to	Present	1%
01-Jan-92	to	31-Dec-94	3%
01-Jan-85	to	31-Dec-91	7%
01-Jul-82	to	31-Dec-84	12%
Prior to 01-Jul-82			6%

 

You can use our Security Deposit Interest Calculator below to calculate the interest on security deposits. By clicking "Calculate" you acknowledge that the result is designed to be correct, but not warranted by the Province of Nova Scotia as so.