If you're searching for a place to rent in Ontario, you might encounter landlords or property managers asking for application fees. Many tenants wonder whether these fees are legal and what their rights are when applying for a new rental. This article breaks down current Ontario rules about rental application fees, connects you to official resources, and empowers you to make informed choices.
Rental Application Fees in Ontario: The Current Law
Ontario’s Residential Tenancies Act, 2006 (RTA) sets clear rules about what landlords can and cannot charge. According to Section 12 of the RTA, it is illegal for a landlord to require a fee just to process or review a rental application. This applies whether the fee is called an "application fee," "screening fee," or something else. Landlords can only ask for specific deposits or payments permitted under the law, such as the first month's rent or, in limited cases, a key deposit.
What Can Landlords Legally Ask For?
- First month's rent: This is typically collected as a deposit to secure the rental.
- Last month's rent: This can also be requested upfront.
- Key deposit: Only if it is refundable and does not exceed the cost of replacing the key.
If you have questions about legal deposits, the article Understanding Rental Deposits: What Tenants Need to Know explains your rights and what you can expect when renting in Ontario.
What About Non-Refundable Fees?
Non-refundable fees for processing rental applications, background checks, or credit checks are not allowed under Ontario law. If a landlord asks you to pay any additional fee just to apply for a rental, you can let them know that this request is not permitted under the Residential Tenancies Act, 2006.
How to Respond If You’re Asked to Pay an Application Fee
If a landlord or agent asks you for a rental application fee, here’s what you should do:
- Politely remind them that the Residential Tenancies Act does not allow application fees.
- Refuse to pay the fee. Instead, offer to provide your application and references directly.
- If the landlord insists or refuses to consider your application, make a written record of what happened (take notes with names, dates, and amounts mentioned).
Forms and Official Agencies: Filing a Complaint
Ontario’s Landlord and Tenant Board (LTB) is the official tribunal that hears disputes between residential landlords and tenants in Ontario. If you've been charged an illegal application fee, you may be able to file a complaint or application for its return.
Relevant Forms:
- T2: Application about Tenant Rights (official form link)
This form lets you file a claim if your legal rights, including those regarding illegal fees, have been violated.
Example: If a landlord refuses to return an application fee, you can use the T2 form to ask for an order that the money be refunded.
What to Do After You Sign a Lease
Once your application is accepted and you sign a rental agreement, ensure you know your ongoing rights and responsibilities. Learn more with What Tenants Need to Know After Signing the Rental Agreement.
Tips to Protect Yourself as a Tenant
- Never pay fees that are not listed in the lease or allowed under Ontario law.
- Keep copies of all communications and receipts related to your rental search.
- If something seems suspicious, check government resources or seek trusted tenant advocacy help.
- Browse apartments for rent in Canada with reputable listings and avoid questionable fees.
For more province-specific details about your rights, see Tenant Rights in Ontario.
- Are rental application fees legal in Ontario?
No. The Residential Tenancies Act, 2006 does not allow landlords to charge fees for processing rental applications. Application fees are illegal in Ontario. - What should I do if a landlord asks for an application fee?
Politely let them know application fees are not permitted under Ontario law. You can refuse to pay and still submit your rental application. - Can a landlord ask for deposits or payments before a lease is signed?
Yes, but only for the first (or last) month's rent and, in rare cases, a refundable key deposit. For details, check Understanding Rental Deposits: What Tenants Need to Know. - How do I get my money back if I paid an illegal application fee?
You can request a refund from the landlord first. If refused, you may file a T2 application with the Landlord and Tenant Board. - Who can help me if I have a problem with rental application fees?
The Landlord and Tenant Board and tenant advocacy organizations can offer guidance and resources.
Conclusion: Key Takeaways
- Rental application fees are illegal in Ontario – be cautious if you’re asked to pay one.
- You only have to pay deposits that are specifically allowed by law, such as first or last month's rent and refundable key deposits.
- Keep records, know your rights, and use government resources for disputes or questions.
Need Help? Resources for Tenants
- Landlord and Tenant Board (LTB) Ontario: Tribunal for resolving disputes, applications, and tenant complaints
- Ontario Government: Renting in Ontario – Your Rights: Government resource for tenants
- Advocacy Centre for Tenants Ontario (ACTO): Free legal information and tenant support
- Find more about your rights at Tenant Rights in Ontario
- Search safe, legitimate listings: Browse apartments for rent in Canada
