Ontario Tenant Guide: Rent and Deposit Rights Explained

Being a tenant in Ontario—especially when issues around rent and deposits arise—can be confusing and stressful. Understanding your rights and responsibilities is the best way to protect yourself and avoid common pitfalls. This guide will help you navigate rent payments, increases, deposits, and official forms under Ontario's Residential Tenancies Act, 2006.^[1]

Understanding Rent Payments and Rules

Ontario's rental system is regulated to ensure fairness, transparency, and protection for both tenants and landlords. Rent must usually be paid in full and on time, on the date agreed in your rental agreement.

• Landlords must provide a written receipt for rent, even if you pay electronically or by cheque.
• Landlords can't demand post-dated cheques, but you can offer them if you wish.
• Your rent can only be increased once every 12 months, with three months' written notice.

For more tips on paying rent and understanding your responsibilities, see Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

What Are Legal Rent Deposits?

In Ontario, the only deposit a landlord can require is a "rent deposit," also known as a last month's rent deposit. Security deposits for damages are not legal in Ontario. Your rent deposit cannot be more than one month's rent (or one rental period for non-monthly tenancies).

• Landlords cannot use your rent deposit for repairs or cleaning—only as payment for your last period of rent.
• If rent increases, your landlord may ask you to top up your deposit to match the new amount.
• If you move out on schedule, the deposit should cover your last rental period with no additional payment required.

For a thorough explanation, visit Understanding Rental Deposits: What Tenants Need to Know.

Rent Increases: Notice, Rules, and Limits

Ontario law sets strict limits on rent increases for most rental units. Your landlord must:

• Wait 12 months after your tenancy or your last increase before increasing rent again.
• Give at least 90 days' written notice using the proper form.
• Follow the annual rent increase guideline set by the provincial government (unless the unit is exempt).

Some units, such as those first occupied after Nov. 2018, may not be subject to the guideline. Reviewing the notice carefully or consulting the Landlord and Tenant Board is advised. See the Understanding Rent Increases: What Tenants Need to Know guide for details.

Key Forms Every Tenant Should Know

As a tenant in Ontario, you may need the following forms when dealing with rent or deposit issues:

• N1 Notice of Rent Increase: Used by landlords to lawfully notify tenants of a rent increase. For example, your landlord must give you an N1 at least 90 days before the increased rent is due. Download the N1 form from the Landlord and Tenant Board.^[2]
• T2: Application about Tenant Rights: File this with the Landlord and Tenant Board if your landlord illegally withholds deposits or increases rent improperly. For example, if your landlord doesn't return your overpayment, file a T2 to request compensation. Get the T2 form and instructions here.^[2]
• T6: Tenant Application about Maintenance: If you are being asked for a deposit for damage repairs, use this form to dispute improper requests. Find T6 here.^[2]

Always read instructions that come with each form. If you're not sure which one to use, contact the Landlord and Tenant Board for guidance.

Dealing with Deposit Disputes and Getting Your Deposit Back

If you move out, your landlord must use your rent deposit to cover your last month (or period) of rent. If you paid too much, you should receive a refund of the difference. If the landlord refuses, you can file a T2 application with the Board.

For a step-by-step overview of getting your deposit back, visit How to Get Your Security Deposit Back with Interest When Moving Out.

Know Your Rights as a Tenant in Ontario

Ontario tenants have specific protections under the Residential Tenancies Act, 2006. If you feel that your rights are being violated, such as with illegal deposits or wrongful rent increases, you can seek a hearing at the Landlord and Tenant Board (LTB).^[2]

To learn more, read Tenant Rights in Ontario.

FAQ: Ontario Rent and Deposit Issues

1. Can a landlord ask for a security deposit in Ontario?
   No. Ontario law only allows for a rent deposit (to be used for your last month's rent), not for damage or security. Any other deposit request should be refused.
2. How often can my landlord raise the rent?
   Usually once every 12 months, with at least 90 days’ written notice. Some units may be exempt—check the status of your rental or ask the Landlord and Tenant Board.
3. What should I do if my landlord refuses to return my deposit?
   Start by sending a written request. If there’s still no resolution, file a T2 application with the Board to claim your deposit back.
4. Do I have to pay the deposit before moving in?
   Yes. The landlord can require a "last month's rent" deposit before you move in, but not before you sign a rental agreement.
5. How do I get help with a rent dispute?
   You can contact the Landlord and Tenant Board or a local legal clinic for free advice and support.

How To: Deal with Rent and Deposit Disputes in Ontario

1. How do I respond to an illegal rent increase?
   Review your notice for accuracy, contact the landlord in writing with your concerns, and if unresolved, file a T2 application with the LTB within one year of the incident.
2. How do I get my rent deposit back if the landlord won’t return it?
   Send a formal written request. If unsuccessful, complete and submit a T2 form to the Landlord and Tenant Board.
3. How can I officially dispute a rent charge or deposit issue?
   Collect documentation, fill out the correct form (usually T2), include supporting evidence, and file it via the Board's online system, by mail, or in person before the limitation time runs out.

Key Takeaways for Tenants

• Only a "last month's rent" deposit is legal in Ontario. Security deposits for damages are not.
• Rent increases are tightly regulated: once every 12 months, with proper notice and limits.
• If you have a dispute over rent or deposits, know which form to use and contact the Landlord and Tenant Board for help.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB): Rent and deposit complaints, forms, and case updates in Ontario.
• Ontario Government: Renting - Your Rights and Responsibilities
• Legal Clinics Ontario: Free tenant law advice and advocacy (search "legal clinic Ontario").
• Find rental homes across Canada on Houseme — browse updated listings and resources from coast to coast.

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1. Residential Tenancies Act, 2006 (Ontario Legislation)
2. Landlord and Tenant Board (LTB) — Forms, guides, applications

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