Which deposits Ontario residential landlords can collect

A rent deposit is for the last rental period

The provincial guide allows the landlord to ask for the deposit on or before entering the tenancy agreement. It caps the amount at the lower of one month’s rent and one rental period. That can mean one week for a weekly tenancy. The landlord must apply the money to the last rental period. Source 1

The landlord owes interest on the rent deposit

The guide says interest must be paid to the tenant each year. If the rent increases, the landlord can require a top-up to match the new rent and can use the interest toward that top-up. If the landlord cannot provide the rental unit, the deposit must be returned unless the tenant agrees to another unit. Source 1

The refundable key deposit is a separate payment

The guide permits a refundable deposit for keys, cards or remote access devices. The landlord must return it when the tenant returns the items at the end of the tenancy. A charge for additional keys a tenant requests is different and cannot exceed the actual cost of the keys. Source 1

Damage and pet deposits fall outside the allowed charges

The guide says the tenant does not have to provide a damage or pet deposit. If the tenant has paid amounts beyond the permitted deposits, it says they can apply to the Landlord and Tenant Board to recover that money. The guide applies the rule to tenancies covered by the provincial Act. Source 1

Sources

• Ontario Ministry of Municipal Affairs and Housing guide to the standard lease