Illegal Fees Tenants Should Watch For in Newfoundland and Labrador

Understanding which rental fees are legal is crucial for tenants in Newfoundland and Labrador. The Residential Tenancies Act (RTA) protects your rights by setting clear rules about what landlords can and cannot charge, so you can better avoid unfair charges and protect your finances.

What Are Illegal Fees in Newfoundland and Labrador Rentals?

Landlords are not allowed to charge tenants any fees that are not explicitly permitted by the Residential Tenancies Act or approved by the provincial director. Understanding which fees are unlawful helps you avoid paying unnecessary money and supports fair rental housing practices.

Common Illegal Fees

According to the Residential Tenancies Act, landlords cannot legally collect or require the following fees:

• Application fees: Charging a fee to apply for a rental unit is illegal in Newfoundland and Labrador.
• Key money: Landlords cannot demand extra funds for providing keys or access to the rental unit, beyond those permitted deposits.
• Additional deposits: With rare exceptions, only a security deposit (limited to the equivalent of ¾ month's rent) is allowed. Other deposits, like "damage deposits" or "pet deposits," are prohibited unless specifically approved.
• Non-refundable cleaning or move-out fees: Tenants cannot be charged mandatory cleaning fees or similar charges when moving out, unless for extra cleaning costs due to tenant neglect and proven damage.
• Mandatory repair surcharges: Routine repair costs are the landlord’s responsibility; a landlord cannot require tenants pay pooled or blanket maintenance fees.

Always ask for an itemized breakdown of any fee or charge and compare it against the rules outlined by the provincial tribunal.

Permitted Charges: What Is Legal?

Landlords may collect a security deposit (sometimes called a rental deposit), but it is capped at no more than three-quarters of one month’s rent, as laid out in the RTA. No other upfront fees or ongoing surcharges are permitted unless clearly authorized by the Residential Tenancies Act or approved by the Director of Residential Tenancies.

For more details about what is and is not allowed regarding deposits, see Understanding Rental Deposits: What Tenants Need to Know.

Your Rights and the Role of the Residential Tenancies Program

Rental disputes and illegal fee claims in Newfoundland and Labrador are managed by the Residential Tenancies Program, part of Service NL. This body handles landlord–tenant disputes, provides hearings, and issues orders based on the RTA.

For full details on tenant and landlord rights, visit Tenant Rights and Landlord Rights in Newfoundland and Labrador.

Key Legislation: Residential Tenancies Act

The Residential Tenancies Act of Newfoundland and Labrador is the governing law for all rental agreements, setting out clear rules about legal and illegal fees¹.

What to Do If Charged an Illegal Fee

If a landlord tries to collect a prohibited fee, you are not required to pay it, and you have the right to dispute the demand formally.

• Inform your landlord in writing that the fee is not allowed under the Act
• Request a refund in writing if you have already paid an illegal fee
• Document all communications and keep receipts

If your landlord refuses to return an illegal fee or insists on charging it, you can apply to the Residential Tenancies Program for an order.

How to File a Complaint or Application

Use the appropriate form to formally dispute an illegal fee:

• Form: "Application for Dispute Resolution" (available through the Residential Tenancies Program)
• Download the Application for Dispute Resolution (PDF)

When to use: If your landlord is demanding or has collected a fee you believe is illegal, complete this form to request a hearing and possible order for repayment.

Routine and Emergency Repairs: Who Pays What?

While tenants might be charged for repairs due to their own damage or neglect, landlords generally cannot make tenants pay up-front or recurring repair fees. For more information on this topic—including emergency and regular repairs—see Routine Repairs in Rental Units: Tenant and Landlord Responsibilities.

Remember: Even if you sign a lease that lists illegal fees, those provisions are not enforceable under the law.

For tenants looking for high-quality listings that respect provincial legal standards, Find rental homes across Canada on Houseme.

Frequently Asked Questions

1. Can a landlord in Newfoundland and Labrador charge "application fees" or "key money"?
   No. Application fees and key money are both considered illegal under the Residential Tenancies Act.
2. What is the maximum deposit a landlord can charge?
   The maximum allowed is three-quarters of one month’s rent as a security deposit. No extra or additional deposits are permitted.
3. My landlord charged me a "move-out cleaning fee". Is this legal?
   No. Mandatory move-out or cleaning fees are illegal unless they represent reimbursement for actual, documented cleaning costs due to tenant neglect.
4. How do I dispute an illegal rental fee?
   Start by informing the landlord in writing, request a refund, and if necessary, submit an Application for Dispute Resolution to the Residential Tenancies Program.
5. What should I do if I'm unsure whether a fee is legal?
   Check the Residential Tenancies Act, contact the Residential Tenancies Program, or reach out to a tenant advocacy group for clarification.

Conclusion: Key Takeaways for Tenants

• Never pay a fee not clearly allowed by Newfoundland and Labrador's rental laws.
• Security deposits are capped and strictly regulated—most extra fees are illegal.
• File a dispute application if charged an improper fee, and keep all documentation.

Getting familiar with your rights empowers you to make informed decisions and avoid costly mistakes. Reviewing provincial rules and asking questions protects your finances and helps ensure a positive rental experience.

Need Help? Resources for Tenants

• Residential Tenancies Program – Service NL: For disputes, applications, and inquiries.
• Residential Tenancies Act of Newfoundland and Labrador: Official full text of the legislation.
• Tenant advocacy resources and legal information lines are available through local community centres and Service NL offices.
• For more details about tenant rights and responsibilities, visit Tenant Rights and Landlord Rights in Newfoundland and Labrador.

---

1. Residential Tenancies Act, SNL 2018, c. R-14.1
2. Residential Tenancies Program, Service NL

Categories

Tenant Rights & Responsibilities Rent & Deposits Leases & Agreements Moving In / Out Maintenance & Repairs Evictions Roommates & Shared Housing Discrimination & Accessibility Utilities & Services Affordable Housing & Subsidies Dispute Resolution & LTB Safety & Security Privacy & Entry by Landlord Special Tenancy Situations Tenant Insurance & Liability Post-Eviction Resources Landlord Compliance & Penalties Legal Precedents & Case Summaries Mental Health & Tenancy