If the landlord does not complete the move in or move out inspection reports, they cannot keep the security deposit. But, the landlord can 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 Civil or through the Residential Tenancy Dispute Resolution Service for return of the security deposit.
If there is damage beyond normal wear and tear, the landlord could make an application to cover the damage. They can do so through Provincial Court or through the Residential Tenancy Dispute Resolution Service.