What counts as a last month's rent deposit in Ontario?
In Ontario a last month rent deposit is a payment made in advance to cover the final month of tenancy. The Residential Tenancies Act, 2006 sets the rules about whether a landlord may require such a deposit and how it must be treated by the landlord [2]. A last month deposit is not a separate security deposit for damage in most cases and should be applied only to the last month’s rent unless the tenancy agreement or law says otherwise.
How much can a landlord collect?
Landlords may generally require a payment equal to one month’s rent as a last month deposit, but they cannot demand additional damage or pet deposits beyond what the law allows. The exact limit and permitted practices are governed by provincial rules and the tenancy agreement; review your lease carefully and keep receipts.
How landlords must hold and apply the deposit
Landlords must apply the deposit to the final month’s rent when the tenancy ends. They cannot apply that amount to cover damage unless the agreement or a tribunal decision allows it. If you dispute a deduction, you can request an itemized accounting and, if needed, apply to the Landlord and Tenant Board for resolution [1].
When and how to ask for your deposit back
Start by asking the landlord in writing for an explanation and any receipts for deductions. If the landlord does not respond or refuses to return the correct amount, gather documentation and consider filing an application with the Landlord and Tenant Board; application and evidence instructions are on the Board site and in its forms section [3]. For general background on deposits see Understanding Rental Deposits: What Tenants Need to Know. If you need to find a new rental while resolving a deposit dispute, Find rental homes across Canada on Houseme.
Common scenarios and practical steps
- Deductions for unpaid rent or rent arrears may be claimed by the landlord.
- Charges for damage beyond normal wear and tear can be disputed with photos and receipts.
- Failure to return an accounting or receipts is a common reason to apply to the Board.
FAQ
- Can a landlord use my last month deposit for unpaid utilities?
- It depends on your lease and who is responsible for utilities; if your lease makes you responsible and you owe money, the landlord may seek payment but must provide an itemized claim.
- What if the landlord says they applied the deposit and I disagree?
- Ask for a written accounting. If the explanation is insufficient, collect evidence and apply to the Landlord and Tenant Board for a decision.
- How long do I have to take action?
- Act promptly and follow any timelines in the RTA; keep written records and respect tribunal deadlines to avoid losing your claim.
How-To
- Gather evidence: receipts, bank records, photos of the unit taken when you moved in and out, and the signed lease.
- Contact the landlord in writing asking for the deposit or an itemized statement with a deadline for reply.
- Send a formal written request or notice by email and registered mail so you have proof of delivery.
- If the landlord does not resolve the issue, file an application with the Landlord and Tenant Board and attach your evidence.
Key Takeaways
- Last month’s rent is a prepayment for the final month, not a general damage deposit.
- Keep clear records and photos to contest improper deductions.
- The Landlord and Tenant Board handles disputes and has application forms and guidance.
Help and Support / Resources
- Landlord and Tenant Board (Ontario)
- Find renter rights and responsibilities (Ontario)
- Residential Tenancies Act, 2006 (Ontario)
