Ontario Rent Deposit Rules: Last Month's Rent & Fees

Many tenants in Ontario worry about what a landlord can ask for when starting a tenancy and what happens to a last months rent deposit at move-out. This guide explains in plain language who may collect a rent deposit, what fees are prohibited, and the steps a renter can take to recover funds if there is a dispute. You will find practical examples, the official forms and tribunals to contact, and tips for documenting payments and damage. Whether you are signing a lease, moving out, or responding to a notice, these clear steps help renters protect their money and understand their rights under provincial rules.

What landlords can and cannot collect

In Ontario, the Residential Tenancies Act, 2006 limits what a landlord may collect before or during a tenancy. Most commonly landlords may request a rent deposit to be applied to the last month's rent; other types of security deposits or refundable "holding" fees are generally not permitted under provincial rules. Always check the legislation and the Landlord and Tenant Board for details on exceptions and record-keeping requirements.^[1]

Common permitted and prohibited items

• Last months rent deposit equal to one months rent (permitted).
• Security deposits beyond last months rent (prohibited).
• Pet damage deposits or separate refundable fees billed as deposits (usually not allowed).
• Receipts and records showing payment date and purpose (always keep these).

How last month's rent works and record-keeping

A "last month's rent" deposit is usually applied against the final month's rent when a tenancy ends. Tenants should get a written receipt and keep copies of bank transfers or online payment records. If your landlord deducts from the deposit for damage or unpaid rent, they must provide evidence of the costs. If you disagree, document the condition with photos and written notes and request an itemized explanation in writing.

Official forms and where to apply

If you cannot resolve a dispute with your landlord, you can apply to the Landlord and Tenant Board to have the matter decided. Common starting points include the Boards forms and the official text of the Residential Tenancies Act, 2006 for the legal rules that apply.^[2][1]

Key forms tenants may use

• Application to the Landlord and Tenant Board (forms page)  Use to start a complaint when a landlord withholds a deposit; for example, file the appropriate application to ask the Board to order a refund and costs.
• Residential Tenancies Act, 2006  Consult the Act for the exact legal wording about deposits and prohibited fees.
• Contact the Landlord and Tenant Board for process questions and to confirm the correct application before filing.

Practical steps before filing a dispute

1. Gather all payment records, receipts, photos and the lease showing rent amounts.
2. Write to your landlord requesting an itemized refund or explanation and keep a dated copy.
3. If theres no reasonable response, prepare and file the appropriate application at the Landlord and Tenant Board.
4. Attend the hearing, present evidence, and ask for an order for repayment and any allowable costs.

For more general reading on deposits and tenant steps, see Understanding Rental Deposits: What Tenants Need to Know and for move-out deposit procedures see How to Get Your Security Deposit Back with Interest When Moving Out. If youre searching for a new place while protecting your rights, Find rental homes across Canada on Houseme.

FAQ

Can a landlord in Ontario ask for more than last months rent as a deposit?

No. A landlord may only collect a last months rent deposit equal to one months rent; additional security deposits or refundable holding fees are generally prohibited.

Do landlords have to pay interest on a rent deposit?

Interest rules vary and can change; check the Residential Tenancies Act, 2006 and Landlord and Tenant Board guidance for current interest requirements and calculations.

What should I do if my landlord keeps my deposit unfairly?

Ask for an itemized statement in writing, gather evidence, try to negotiate, and if necessary file an application with the Landlord and Tenant Board to request repayment.

How-To

1. Gather evidence: receipts, bank records, photos and your lease showing rent amounts.
2. Send a written request to the landlord for the deposit return and keep a copy of your message.
3. If the landlord does not respond, file the appropriate application with the Landlord and Tenant Board.
4. Attend the hearing with your evidence and ask the Board to order repayment if the claim is successful.

Help and Support / Resources

• Landlord and Tenant Board - official site
• Residential Tenancies Act, 2006 (e-Laws)
• Landlord and Tenant Board - forms and applications

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1. [1] Residential Tenancies Act, 2006  e-Laws
2. [2] Landlord and Tenant Board  Tribunals Ontario
3. [3] Landlord and Tenant Board  Forms and applications