Many tenants renting furnished apartments in Ontario worry about deposits, what is legal, and how to protect their money. This guide explains, in plain language, what landlords may ask for at the start of a tenancy, how deposits differ from last month's rent, and practical steps renters can take to document the unit and recover funds at move-out. It covers the provincial rules under the Residential Tenancies Act[1], steps to raise a dispute with the Landlord and Tenant Board[2], and how to keep evidence like photos and receipts. If you are a renter preparing to sign a lease or already living in a furnished unit, these clear, practical tips will help you avoid surprises and enforce your rights.
What deposits are allowed in Ontario?
Ontario's Residential Tenancies Act controls what landlords can require from tenants for most residential tenancies. For furnished rentals the same basic rules apply as for unfurnished units: landlords may collect rent or a rent deposit (commonly a last-months' rent deposit), but cannot create other security deposits beyond permitted rent payments. Always read your lease to see if a payment is labelled as "last month's rent" and that it is recorded as such.
Common examples
- Last month's rent held as a rent deposit to cover the final rental period.
- Rent paid in advance (for example, paying the first month before move-in).
- Fees or deposits specifically prohibited by law should not be requested by a landlord.
If a landlord asks for a separate "damage" or "security" deposit beyond last month's rent, that request is not consistent with Ontario's usual tenancy rules. Always ask the landlord to clarify how any payment will be used and to include that wording in the written lease.
How to protect your deposit and document a furnished unit
Before you move in, document the unit carefully and get everything in writing. Good documentation reduces the chance of a withholding dispute later.
- Take time-stamped photos or video of all rooms, furnishings and any existing damage.
- Get written receipts for all payments, including any rent paid in advance or listed as last month's rent.
- Create a signed move-in checklist or inventory and attach it to the lease.
When a landlord withholds any portion of a deposit
If the landlord withholds money at move-out, start by asking for a written explanation and an itemized list of deductions. Try to resolve the issue directly first; keep all messages and receipts. If that fails, you can file an application with the Landlord and Tenant Board to dispute the withholding. Use the Board's forms and follow filing instructions to explain your claim and attach evidence like photos and receipts[3].
Practical example: If your furnished unit had a stained couch noted on your move-in checklist and the landlord still charges you for a tear you documented, send the checklist and photos to the landlord, request an itemized invoice, and if necessary file with the Board using the appropriate application form.
Resources and related guides
For background on general deposit practices and tenant steps, read Understanding Rental Deposits: What Tenants Need to Know. For guidance specifically about recovering deposits at move-out, see How to Get Your Security Deposit Back with Interest When Moving Out.
If you're thinking of searching for another place while you sort a dispute, Find rental homes across Canada on Houseme to compare listings and lease terms in your area.
FAQ
- Can a landlord charge a separate damage deposit for a furnished rental in Ontario?
- No. In Ontario, landlords generally cannot require separate security or damage deposits beyond permitted rent payments such as last month's rent.
- What should I do if my landlord denies returning my deposit?
- Request an itemized list of deductions and try to resolve the issue directly. If that fails, gather evidence and file an application with the Landlord and Tenant Board to dispute the withholding.
- How do I document the condition of a furnished rental to protect my deposit?
- Take time-stamped photos or video, complete a signed move-in inventory, keep receipts for payments, and keep copies of all communications with the landlord.
How-To
- Ask the landlord in writing for an explanation and an itemized list of any deductions.
- Collect and organize evidence: photos, inventory, receipts, and messages with the landlord.
- Complete the appropriate Landlord and Tenant Board application form and attach your evidence.[3]
- Attend the Board hearing, present your evidence, and answer the landlord's questions.
- If you receive an order and the landlord still does not comply, use the enforcement steps outlined by the Board.
Help and Support / Resources
- Contact the Landlord and Tenant Board
- Residential Tenancies Act, 2006 (Ontario)
- Ontario: Renting and tenant rights
