Is Paying Rent by Cash, Cheque, or E-transfer Legal in Ontario?

For Ontario tenants, understanding your rights regarding rent payment is essential—especially with changing technology and rental practices. Whether you prefer paying by cash, cheque, or e-transfer, it’s important to know what is legal under Ontario’s rental laws, how to protect yourself, and what to do if you face issues with your landlord over payment methods.

How Can Tenants Legally Pay Rent in Ontario?

Ontario’s Residential Tenancies Act, 2006 (RTA) sets clear rules about how rent can be paid, and what landlords can (or can’t) require. Landlords must accept rent through at least one standard method and cannot demand post-dated cheques or automatic payments as a condition of tenancy.

What Payment Methods Are Legal?

• Cheque or Post-dated Cheques: Landlords can accept cheques, but cannot require post-dated cheques as a condition of tenancy. Offering post-dated cheques is strictly optional for tenants.
• Cash: It is legal to pay rent in cash. However, always request a receipt for every cash payment for your records.
• E-transfer/Electronic Payment: E-transfers (Interac e-Transfer), online banking, and other electronic methods are permitted if both parties agree. Landlords may offer e-transfer as a payment option but cannot force you to use only digital methods.

Summary: You may choose any payment option your landlord offers but cannot be forced into any single method. Always ensure you can obtain a receipt, especially with cash or electronic payments.

Your Rights: Refusing Certain Rent Payment Methods

Under Ontario law, you have the right to pay by any method agreed upon by you and your landlord. If a landlord tries to require only post-dated cheques or insists on automatic withdrawals, you can refuse. They cannot refuse your tenancy on this basis.

Tip: If your landlord won’t accept your chosen legal payment method, write to them explaining your rights under section 108 of the Residential Tenancies Act, 2006.

For a full overview of your payment rights and practical advice, see the Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

Getting Receipts: Why It Matters

• Landlords must provide a written receipt for rent or any deposit payment (upon request).
• This includes cash, cheque, e-transfer, or any other legal method.
• Receipts protect you in case of payment disputes.

Official Forms to Know

• Form N4: Notice to End your Tenancy Early for Non-payment of Rent
  • Use: If your landlord claims you are behind on rent after a payment method issue.
  • Action: If served, pay any missed rent immediately or file a response with the Landlord and Tenant Board (LTB).
  • Get the official N4 form
• Form L1: Application to Evict a Tenant for Non-payment of Rent and to Collect Rent the Tenant Owes
  • Use: Landlords use this if you do not catch up on missed rent.
  • Tenants should respond using Form T5 (see LTB site for more details).
  • Get the official L1 form

If you believe a landlord’s payment demand is unreasonable, contact the LTB for assistance.

Security Deposits and Rent Payment

Ontario law only permits a "rent deposit" (not a damage deposit), and it must not exceed one month’s rent. Like regular rent, you can pay the rent deposit by cheque, cash, or e-transfer if your landlord allows.

Learn more at Understanding Rental Deposits: What Tenants Need to Know.

Safe Practices: Tips for Paying Rent

• Never pay cash without getting a receipt signed by the landlord.
• Use e-transfer’s "note" section to indicate "rent for [month/year]" for clear records.
• Keep copies of email, bank, or paper confirmations.
• If facing payment issues, contact your landlord in writing and keep a copy.

For more on tenants’ rights in Ontario, see Tenant Rights in Ontario.

Looking for a new rental? Find rental homes across Canada on Houseme.

FAQ: Paying Rent in Ontario Rentals

1. Can my landlord require payments only by e-transfer or post-dated cheques?
   No. Landlords can suggest options but cannot force you to pay rent only by e-transfer, post-dated cheques, or any one method.
2. What should I do if a landlord refuses to give me a rent receipt?
   Request one in writing. By law, landlords must provide receipts for any rent or deposit payment when asked.
3. Is it safe to pay rent in cash?
   It is legal, but always get a signed, dated receipt for every cash payment. Receipts are your proof of payment.
4. Can I switch from one payment method to another?
   Yes. Inform your landlord in writing when you wish to change your payment method.
5. What do I do if a landlord claims I haven’t paid rent?
   Provide your receipt or proof of payment. If there’s a dispute, you may respond to any notices via the Landlord and Tenant Board’s official forms.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB): Info, forms, filing complaints (1-888-332-3234)
• Ontario Landlord and Tenant Board guides
• Advocacy Centre for Tenants Ontario (ACTO): Free legal information for tenants
• Settlement.org Tenant Rights: Tenant info and support

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1. Residential Tenancies Act, 2006, Government of Ontario
2. Landlord and Tenant Board (LTB) Official Site

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