If either the move in or move out inspection reports are not completed, the landlord cannot keep any of the security deposit to cover physical damage to the property that is beyond normal wear and tear. However, the landlord could keep the security deposit to cover other things, like unpaid rent.
If the landlord keeps the security deposit for physical damage to the property and has not completed either of the inspection reports, then the landlord has committed an offence. The tenant can contact Service Alberta for more information about making a consumer complaint. The tenant could also make an application in Provincial Court or through the Residential Tenancy Dispute Resolution Service for return of the security deposit.
If the landlord does not complete the reports and there is damage beyond normal wear and tear in the property, the landlord could still make an application get money to cover the damage in Provincial Court or through the Residential Tenancy Dispute Resolution Service.