Ontario Rent and Deposit Facts Every Tenant Should Know

Renting in Ontario can be overwhelming, especially when it comes to understanding your rights and responsibilities regarding rent and deposits. Whether you're moving into your first apartment or navigating a new lease, knowing the essentials about deposits, rent payment, and rent increases under Ontario’s rules can help you avoid stress and protect your finances.

Key Facts Every Ontario Tenant Should Know About Rent & Deposits

1. Your Security Deposit Is Limited to One Month's Rent

In Ontario, landlords can only ask for a rent deposit that is equal to one month's rent (for monthly tenancies) or one rental period (for weekly/biweekly tenancies). They cannot ask for additional 'damage' or 'pet' deposits.

For a detailed breakdown of legal deposits, visit Understanding Rental Deposits: What Tenants Need to Know.

2. Rent Deposits Can Only Be Used for Last Month’s Rent

The deposit your landlord collects at the beginning of your lease can only be applied to your final month of tenancy, not for repairs, cleaning, or damages. Interest on your deposit must be paid to you annually at the lawful rate.

3. No Damage or Key Deposits Allowed

Ontario's rules prohibit landlords from charging additional deposits for damages or keys beyond the legal rent deposit. This rule protects tenants from illegal extra fees.

4. Rent Payments: Methods, Receipts, and Your Rights

Landlords must provide a rent receipt if you request one—even if you pay electronically. They cannot demand post-dated cheques or automatic transfers unless you agree.

Learn more in the Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

5. Rent Increases: Legal Limits and Notice Periods

Most Ontario rentals are subject to rent increase guidelines set each year. If your landlord plans to raise your rent, they must provide a written 90-day notice using the proper form (see below), and the increase must follow the provincial guideline unless an exception applies.

• Form N1 – Notice of Rent Increase: Used by landlords to legally notify tenants of a rent increase. For example, if your lease is ending and your landlord wants to raise the rent, they must provide this form with 90 days’ advance notice. Access the N1 form on the Landlord and Tenant Board Forms page.

6. Interest on Rent Deposits

Landlords are legally required to pay you interest on your rent deposit every year. The interest rate is set by the province and matches the annual rent increase guideline.

7. Returning Your Deposit When You Move Out

Your rent deposit will be applied to your last month’s rent unless you and your landlord agree otherwise. If your rent increased during your tenancy, you may need to top up your deposit to match your current rent.

For tips to maximize your deposit return, see How to Get Your Security Deposit Back with Interest When Moving Out.

8. Receipts and Record-Keeping Are Your Protection

Always keep written proof of payments—this includes rent deposits, monthly rent, and any additional fees. Request receipts in writing if you don’t receive them automatically.

9. Problems With Rent or Deposits? You Can Apply to the Landlord and Tenant Board

If you believe your landlord has charged an illegal deposit or failed to return your deposit, you have the right to file an application with the Landlord and Tenant Board (LTB). Use the appropriate form for your situation:

• Form T1 – Tenant Application for a Rebate: Example: If your landlord collected a pet deposit or didn’t pay you interest on your last month’s rent deposit, use this form. Access the T1 form here.

10. Where to Find Help With Rent, Deposit Returns, or Landlord Disputes

Knowing where to turn for advice or help filing forms can make all the difference if you face a dispute about your rent or deposit. Free legal clinics, tenant advocacy groups, and the LTB offer guidance and forms.

For the full picture of your rights and responsibilities in Ontario, see Tenant Rights in Ontario.

Looking for your next Ontario rental? Find rental homes across Canada on Houseme for trusted listings from coast to coast.

Frequently Asked Questions: Ontario Rent & Deposits

1. Can my landlord charge extra deposits for damage or pets?
   No. In Ontario, only a rent deposit for last month’s rent is allowed. Damage or pet deposits are prohibited under the law.
2. When and how do I get my rent deposit back?
   Your rent deposit is applied to your last month’s rent. If your rent went up, your deposit may need to be increased. Interest must be paid annually.
3. What notice must my landlord give before increasing the rent?
   Your landlord must provide a proper Form N1 with at least 90 days’ written notice, and the increase must not exceed the annual guideline unless approved by the Landlord and Tenant Board.
4. What should I do if my landlord refuses to give a rent receipt?
   You can make a written request, and if the landlord refuses, contact the Landlord and Tenant Board for assistance.

How To: Navigating Rent and Deposit Issues in Ontario

1. How to apply to the Landlord and Tenant Board for rent or deposit issues:
   
   • Identify the problem (e.g., illegal deposit, unpaid deposit interest).
   • Download and fill out the right form (e.g., Form T1 for illegal fees or interest).
   • Attach receipts or proof of payment if available.
   • Submit the form online, by mail, or at an LTB office.
   • Attend your hearing and provide your evidence.
2. How to provide a rent deposit in Ontario:
   
   • Pay no more than one month’s (or one rental period’s) rent deposit upon lease signing.
   • Keep a receipt and note the deposit amount, date, and any agreement.
3. How to request your rent deposit interest:
   
   • Ask your landlord annually, or when you move out, for the interest earned on your deposit.
   • If you don’t receive payment, remind your landlord in writing.
   • Apply to the LTB if the interest is not paid.

Key Takeaways for Ontario Renters

• Rent deposits are capped and strictly regulated—no extra deposits are legal.
• Get written receipts for all payments; keep records for your protection.
• Disputes about rent or deposits can be taken to the Landlord and Tenant Board using proper forms.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB): Official dispute and application forms, rent guidelines, and contact information.
• Residential Tenancies Act, 2006: The legal backbone for all Ontario tenant rights.
• Advocacy Centre for Tenants Ontario (ACTO): Free legal info and tenant support.

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1. Ontario Residential Tenancies Act, 2006: Read the legislation
2. Landlord and Tenant Board (LTB): Tribunal information and forms
3. Annual Rent Increase Guideline: Current guideline rates

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