Can a landlord ask for a security or damage deposit in Ontario?

No. Only a rent deposit (last month's or last week's rent) is allowed. Security or damage deposits are not permitted under Ontario law.

What official forms do tenants need for rent deposit and notice?

Use Form N1 for rent increases, Form N4 if you get a non-payment notice, Form N9 for giving notice to end your tenancy, and Form T1 if you need to claim a rent deposit rebate.

Is my landlord required to pay interest on my rent deposit?

Yes, your landlord must pay you interest on your rent deposit each year, at a rate set by the Ontario government.

How do I dispute illegal charges or withholdings from my landlord?

File Form T1: Tenant Application for a Rebate with the Landlord and Tenant Board if your deposit is misused or withheld.

Where do I go for help or to resolve disputes in Ontario?

Contact the Ontario Landlord and Tenant Board, or check your rights at the Tenant Rights in Ontario page.

Ontario Rent & Deposit FAQs for Tenants

Rent & Deposits Ontario published July 01, 2025

Understanding your rights around rent, deposits, and moving costs is crucial for Ontario tenants. The rules can be confusing, and mistakes may be costly. This guide gives clear, updated answers to the most common questions about rent and deposits, plus helpful resources, official forms, and links to support you on your rental journey in Ontario. All information is specific to Ontario and based on the Residential Tenancies Act, 2006.^[1]

Key Questions About Rent Payment in Ontario

Many tenants wonder what is allowed, how rent is set, and what happens if they pay late. In Ontario, there are specific rules for paying rent and handling issues like increases or arrears.

How Much Rent Can a Landlord Charge and Increase?

When signing a new lease, landlords can set the rent at any rate. After that, rent increases are regulated yearly by the province.
Landlords must give at least 90 days' written notice for any increase, using the required form: Form N1: Notice of Rent Increase. Download Form N1 here.
Rent can only be increased once every 12 months, and must follow the government’s annual guideline—check the current Ontario rent increase guideline for details.

For more on your rights and how rent is paid, see Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

What Happens If I’m Late With Rent?

Your landlord can give you a Form N4: Notice to End your Tenancy Early for Non-payment of Rent. See Form N4 and instructions.
Paying the full rent owed before the deadline on the notice cancels the eviction process.
Repeated late payments could result in eviction proceedings.

Understanding Rental Deposits

Deposits in Ontario are strictly regulated: landlords can't ask for just any deposit, and deposit misuse is illegal under the Residential Tenancies Act, 2006.^[1]

Landlords can only ask for a “rent deposit” (sometimes called a “last month’s rent deposit”) at the lease signing. It cannot be more than one month’s rent, or if you pay weekly, one week’s rent.
The rent deposit must be applied to your final month (or week) of tenancy, not held for damage or cleaning.
Interest must be paid annually by your landlord, at the province’s guideline rate.
Security or damage deposits for regular wear and tear are not legal in Ontario.

Find more details and best practices about deposits in the Understanding Rental Deposits: What Tenants Need to Know guide.

What If My Landlord Won’t Return My Rent Deposit?

If your landlord refuses to use your deposit for the last month or return the correct interest, you can file for a hearing with Ontario’s Landlord and Tenant Board (LTB).^[2]
Fill out Form T1: Tenant Application for a Rebate to dispute improper deposit handling. Download Form T1 and submit as directed on the LTB website.

It’s important to keep receipts or any bank statements showing your deposit payments.

Your Rights When Moving Out

If you decide to leave, you must give written notice:

In most cases, tenants must give at least 60 days' written notice before the last day of a rental period.
Use Form N9: Tenant's Notice to End the Tenancy. See Form N9 and follow all steps listed on the form.
If you want to end your tenancy early (before the lease is up), different rules and forms may apply. Learn more on the Tenant Rights in Ontario page.

Tips To Protect Your Deposit

Get a receipt for every payment, including your rent deposit.
Do a documented move-in inspection and note the unit’s condition. If your landlord tries to withhold the deposit for damages, your move-in records help you dispute the claim.
Ask for your annual deposit interest each year from the landlord.

Explore more practical steps with Essential Tips for Tenants When Moving Into a New Rental Home.

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

FAQ: Ontario Rent & Deposits

Can a landlord ask for a security or damage deposit in Ontario?
No. Only a rent deposit (last month's or last week's rent) is allowed. Security or damage deposits are not permitted under Ontario law.
What official forms do tenants need for rent deposit and notice?
Use Form N1 for rent increases, Form N4 if you get a non-payment notice, Form N9 for giving notice to end your tenancy, and Form T1 if you need to claim a rent deposit rebate.
Is my landlord required to pay interest on my rent deposit?
Yes, your landlord must pay you interest on your rent deposit each year, at a rate set by the Ontario government.
How do I dispute illegal charges or withholdings from my landlord?
File Form T1: Tenant Application for a Rebate with the Landlord and Tenant Board if your deposit is misused or withheld.
Where do I go for help or to resolve disputes in Ontario?
Contact the Ontario Landlord and Tenant Board, or check your rights at Tenant Rights in Ontario.

How To: File a Complaint Over Deposit Issues

How do I file a complaint if my landlord won’t return my deposit?
Complete Form T1 (Tenant Application for a Rebate), attach proof (receipts, correspondence), and submit it by mail, online, or in person to the Landlord and Tenant Board. A hearing date will be set.
How can I check if a rent increase is valid?
Review the written notice (Form N1) and compare the increase to the annual guideline. If it’s above the guideline without approval, file a complaint with the LTB.
What steps should I take when moving out for a full deposit refund?
Give proper written notice, do a final walkthrough with photos, and keep documentation of your deposit and payments.
Where can I find all official Landlord and Tenant Board forms?
Visit the official LTB forms page for the latest downloads and instructions.

Key Takeaways for Ontario Tenants

Only a rent deposit (not security/damage deposit) is legal, must cover the last rent period, and earn interest for you.
Follow proper notice rules and use official forms for moving out or disputing deposit issues.
The Landlord and Tenant Board governs disputes—always keep records and documentation.

Need Help? Resources for Tenants

Landlord and Tenant Board (LTB): File applications, access forms, and resolve disputes
Ontario’s Rent Increase Guideline & Legislation: Latest guideline & FAQ
Community Legal Clinics: Find your local clinic by calling 211 Ontario or searching online for tenant advocacy services.
Tenant Rights in Ontario for a full provincial overview.