When preparing to move into a new rental in Ontario, many tenants are uncertain about what fees or deposits a landlord can legally require before handing over the keys. Understanding these limits is essential for protecting your budget and ensuring your rights are respected under Ontario law.

What Landlords Can (and Cannot) Charge Before You Move In

In Ontario, landlords must follow the Residential Tenancies Act, 2006^[1]—the key legislation governing rental agreements and deposits. The Act prohibits many up-front charges commonly seen in other provinces.

Permitted Upfront Charges

• First Month’s Rent: Landlords can request the first month’s rent as a deposit to secure the rental unit. This is the most common and, in most cases, the only legal deposit before move-in.
• Last Month’s Rent: Alternatively, landlords sometimes collect the last month’s rent as a deposit. This acts as a prepayment for your final month in the unit, not as a security deposit.

This means: Landlords cannot request both; usually, it’s one or the other, most commonly the last month’s rent. Other charges, such as key deposits, are only allowed if refunded and reasonably cover the actual replacement cost.

Prohibited and Limited Fees

• Security or Damage Deposits: Not permitted in Ontario.
• Application Fees: Charging tenants just to apply for a rental is not allowed.
• Pet Deposits: Landlords cannot require a pet deposit. Ontario law also limits "no pet" clauses.
• Non-Refundable Fees: Any non-refundable fees are illegal under the Act.

For more on legal deposits and protection, see Understanding Rental Deposits: What Tenants Need to Know.

What If Extra Charges Are Demanded?

If a landlord asks for any payment beyond first or last month’s rent (such as a “holding fee,” cleaning fee, or extra access deposit), you have the right to refuse. Keeping clear records and communicating in writing is strongly advised.

Should you face pushback, Ontario offers clear protections. You can file a complaint with the Landlord and Tenant Board (LTB), which enforces the Residential Tenancies Act, 2006.

Required Forms and How to Use Them

• Ontario Standard Lease Agreement—Official Link.
  This form must be used for most residential leases in Ontario. It protects both tenants and landlords by making payment rules, deposits, and fees explicit. Ask for this form before making any payments.
• Tenant Application (Form T1: Tenant Application About Tenant Rights)—Download from LTB.
  Use this if you have already paid illegal fees or were pressured. For example, if you paid a non-refundable fee, you can apply for a refund by submitting Form T1 to the LTB online or in person.

What to Do If a Landlord Requests an Illegal Fee

• Ask the landlord to explain the charge and provide it in writing.
• Inform the landlord that the fee may violate the Residential Tenancies Act, 2006 and that you will pay only what is legally required.
• Document all communication and keep any receipts.
• If the fee is collected or the landlord refuses to proceed without extra charges, consider filing Form T1 with the Landlord and Tenant Board.

For more about starting your new tenancy successfully, see Essential Tips for Tenants When Moving Into a New Rental Home.

Understanding the Law: Your Tenant Rights

Ontario’s rental laws do not allow any deposit or advance payment except for the first (or last) month’s rent. This is one of the strongest regulations for tenant protection in Canada.
Learn about all your protections on Tenant Rights in Ontario.

For more resources, Canada’s best rental listings platform, Houseme - your rental solution in Canada, can help you easily compare and choose properties that respect tenant rights.

1. Can a landlord ask for both first and last month’s rent?
   No, a landlord may only collect up to one month of rent in advance—usually the last month—as a deposit. Any additional deposit is not allowed.
2. Are key deposits allowed?
   A landlord may charge a key deposit, but it must be refundable and only cover the actual replacement cost.
3. What if I paid an illegal fee by accident?
   You can apply to the Landlord and Tenant Board for a refund using Form T1: Tenant Application About Tenant Rights.
4. Is a pet deposit allowed in Ontario?
   No, pet deposits are prohibited in Ontario. Landlords cannot collect extra payment for pets.
5. What should I do if I’m pressured to pay a non-refundable fee before move-in?
   Refuse the demand, keep written evidence, and contact the Landlord and Tenant Board for help.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB): Handles all tenant-landlord disputes and rental payment issues in Ontario.
• Ontario Government: Renting in Ontario: Comprehensive guide to your rights and standard forms.
• Tenant advocacy: Local legal clinics provide free support (find your location via the Ontario government tenant resources).
• Find more tenant guides, including "Essential Tips for Tenants When Moving Into a New Rental Home" on our site.

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1. Residential Tenancies Act, 2006 (Ontario)
2. Landlord and Tenant Board (Ontario)
3. Guide to Ontario’s Standard Lease
4. Official LTB Forms for Tenants

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