If you're a tenant in Ontario, it's important to know what your landlord can and cannot request when you start a new lease. One of the most common questions from tenants is whether a landlord can ask for a damage deposit. Ontario tenancy laws are clear about rental deposits, and understanding these rules can help you protect your rights and avoid unnecessary costs.

What Is a Damage Deposit?

A damage deposit is a sum of money some landlords in Canada may ask tenants to pay in advance to cover potential damages to the rental unit. However, provincial laws determine whether this is allowed. In Ontario, the term "damage deposit" often causes confusion due to strict regulations in place for deposits and other prepaid amounts.

Ontario Law: Can Landlords Request Damage Deposits?

Under Ontario's Residential Tenancies Act, 2006, landlords cannot legally ask for a deposit to cover damages. The only deposit landlords can collect is known as a "rent deposit"—and even that is limited in both its amount and use.

• Damage deposits are not permitted in Ontario.
• Landlords are only allowed to collect a rent deposit, which can be applied solely to the last month's rent—not to damages, repairs, or cleaning.
• Any request for a separate damage deposit or deposit for keys (beyond key replacement cost) is not allowed.

For an overview addressing deposits, see Understanding Rental Deposits: What Tenants Need to Know.

What Can a Landlord Ask For at Lease Signing?

The only lawful deposit a landlord can collect is a rent deposit, typically equal to one month's rent (for monthly tenancies) or one week's rent (for weekly tenancies). This must be applied to the final period of your tenancy.

• No pet deposits: Landlords in Ontario cannot demand a separate pet or cleaning deposit.
• Key deposits are limited: Landlords may only charge for the actual cost of replacing lost keys.

Learn more about your rental responsibilities and moving-in tips by visiting Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

What If You're Asked for a Damage Deposit?

If your landlord requests a damage deposit, it's important to know it's not legally enforceable. You can refer your landlord to Ontario's Residential Tenancies Act or seek support from the Landlord and Tenant Board (LTB), which handles rental housing disputes in Ontario.

Returning Deposits and End of Tenancy

Only the last month's rent deposit (or last week's) is returned as rent credit for your final month residing in the rental unit. It cannot be withheld for damages or repairs; any damages found at the end of your tenancy should be documented and, if necessary, addressed through the LTB's application process.

Relevant Forms for Ontario Tenants

• Form T1: Tenant Application for a Rebate of Money the Landlord Owes – Used if you've paid an unlawful deposit and want a refund from your landlord.
  Learn more and download from the official LTB site. Example: You pay a deposit for damage; you can apply to the LTB to have this money returned.

Quick Facts for Ontario Tenants

• The last month's rent deposit cannot be used for repairs or damages.
• If damages are found after you move out, the landlord may apply to the LTB to recover repair costs.
• Your security as a renter is protected by the Residential Tenancies Act.

To understand your broader rights and rules in Ontario, see Tenant Rights in Ontario.

Looking for your next home? Browse apartments for rent in Canada with updated listings and map views.

Frequently Asked Questions (FAQs)

1. Can my landlord in Ontario ask for a damage deposit in addition to the last month's rent?
   No, landlords in Ontario are prohibited from collecting damage deposits. They may only ask for a rent deposit for the final rental period.
2. Is a pet deposit legal in Ontario?
   No, pet deposits are not permitted. Landlords can only ask for a standard rent deposit.
3. What should I do if I was asked to pay a damage deposit?
   If you paid a damage deposit, you can apply for a refund through the Landlord and Tenant Board using Form T1.
4. Can the landlord use my last month's rent deposit for damages when I move out?
   No. The last month's rent deposit can only be used toward your final month’s rent, not for cleaning or repairs.
5. Who can I contact if I have questions about deposits or feel my rights have been violated?
   Contact the Landlord and Tenant Board for support and information on your rights in Ontario.

Conclusion: What Ontario Tenants Should Remember

• Landlords in Ontario cannot legally require a damage deposit.
• Only a rent deposit (for the last month's rent) can be collected.
• If an unlawful deposit is paid, tenants may apply for a refund through the Landlord and Tenant Board.

Understanding these protections can help tenants avoid unlawful charges and better communicate with their landlords.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) – For applications, complaints, and dispute resolution.
• Ontario Government: Renting in Ontario – Your Rights
• Community Legal Clinics – Free tenant advice and support throughout Ontario.

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1. Residential Tenancies Act, 2006, SO 2006, c 17. Ontario's Residential Tenancies Act, 2006 (full legislation)
2. Landlord and Tenant Board (LTB), Ontario: https://tribunalsontario.ca/ltb/
3. Ontario Government: https://www.ontario.ca/page/renting-ontario-your-rights

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