Alberta tenants receiving 1.6% interest on security deposits
The Alberta Government will be requiring landlords to pay interest on security deposits held for residential or mobile home tenants, starting on January 1, 2024.
The security deposit interest rate, which is set at 1.6 per cent, will be the first time landlords are required to pay interest on security deposits, since 2008.
In a release, Dale Nally, Minister of Service Alberta and Red Tape Reduction, called this move; “good news for tenants, and revenue-neutral for landlords.” Before going on to say “Landlords have been required to pay interest on security deposits since 2004 but only when interest rates reach a certain level. This year, for the first time in a long time, they’ve reached that level.”
Now with this new policy, the 1.6 per cent interest rate must be paid out to the tenants at the end of each year, unless otherwise agreed upon. In that case, the compiled sum will be given to the tenant at the end of their tenancy.
