Can my landlord ask for a damage deposit in Ontario?

No. In Ontario, it is illegal for landlords to ask for damage deposits, pet deposits, or any extra security deposits other than last month's rent and a key deposit (if applicable).

What happens to my last month's rent deposit?

It is held by your landlord and used to cover your last rental period if you move out. The deposit must be used only for rent, not damages or cleaning.

How do I get my deposit back when I move out?

If you paid a key deposit, it must be returned when you hand back the keys. If your last month's rent deposit exceeds your final month’s rent due to a rent increase, you may be owed interest or a refund of the difference.

What if the landlord asks for post-dated rent cheques?

You do not have to provide post-dated cheques, unless you choose to. You can always pay rent by e-transfer, cheque, or cash, as agreed.

How do I dispute a deposit disagreement?

Disputes can be taken to the Landlord and Tenant Board, who will review the case according to the Residential Tenancies Act.

Rent and Deposit Rules for New Ontario Tenants

Rent & Deposits Ontario published July 01, 2025

Starting a new rental in Ontario can be exciting, but understanding your rent and deposit obligations is essential for a worry-free tenancy. This guide explains key rules around rent payments, security and key deposits, and how tenant rights are protected under provincial law. Whether it's your first time renting or you're new to Ontario, knowing your responsibilities—and your rights—can help you avoid common surprises.

What Is Rent and What Do You Pay Upfront in Ontario?

In Ontario, rent is the regular payment you make to your landlord for living in a rental unit. As a new tenant, it's common to be asked for certain payments when your lease begins. Here's what you should expect:

First month's rent: Typically required in full before you move in.
Last month's rent deposit: Landlords can request this as a deposit to cover your final month of tenancy.
Key deposit (if requested): Must not exceed the actual cost of replacing the keys.

It's illegal for landlords to request additional types of deposits, such as a damage deposit, pet deposit, or extra 'security' deposits in Ontario.

Security and Rental Deposits: Your Rights and Limits

Understanding how deposits work protects your funds and helps you assert your rights. Landlords can only collect a deposit equal to one month's rent (or one rental period for non-monthly leases), known as the 'last month's rent deposit.' This deposit cannot be used for damages or cleaning.

Get the details in Understanding Rental Deposits: What Tenants Need to Know if you're unsure what's allowed.

Paying Rent: When, How, and Receipts

Rent is usually due on the first of the month unless stated otherwise in your lease. Landlords must provide the agreed payment method in writing, and you have the right to request a receipt for any payment you make—no matter the method.

Missing rent payments (even by just one day) can result in eviction notices. Learn more in Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

What If You're Asked for Extra Deposits?

If you're asked for additional deposits not permitted by law, politely remind your landlord of the Residential Tenancies Act, 2006 (RTA), which prohibits extra deposits (except key deposits and last month's rent).

Useful Forms for Tenants in Ontario

Form N1 – Notice of Rent Increase: Used by landlords to notify you of a rent increase. Always check that increases follow legal notice periods and guidelines.
Get the N1 Form from the Landlord and Tenant Board.
Example: If your landlord gives you an N1 form, confirm the notice period and the percentage increase.
Form L1 – Application to Evict a Tenant for Non-Payment of Rent: Used by landlords if rent is unpaid. Tenants should act quickly if they receive a related notice.
Find L1 and tenant response forms here.

Legal Protections and Where to Go for Help

Disagreements over deposits, rent, or fees are handled by the Landlord and Tenant Board (LTB). The LTB is Ontario’s official tribunal for resolving rental disputes. All rules discussed above are set out in the Residential Tenancies Act, 2006.

Tip: Get everything in writing and keep copies of application forms, payment receipts, and communications. This helps if you need to dispute a charge or claim your deposit back.

For a province-wide overview of your tenant rights, see Tenant Rights in Ontario.

Ready to look for your next home? Explore Houseme for nationwide rental listings.

FAQ: Ontario Rent and Deposit Rules for New Tenants

Can my landlord ask for a damage deposit in Ontario?
No. In Ontario, it is illegal for landlords to ask for damage deposits, pet deposits, or any extra security deposits other than last month's rent and a key deposit (if applicable).
What happens to my last month's rent deposit?
It is held by your landlord and used to cover your last rental period if you move out. The deposit must be used only for rent, not damages or cleaning.
How do I get my deposit back when I move out?
If you paid a key deposit, it must be returned when you hand back the keys. If your last month's rent deposit exceeds your final month’s rent due to a rent increase, you may be owed interest or a refund of the difference.
What if the landlord asks for post-dated rent cheques?
You do not have to provide post-dated cheques, unless you choose to. You can always pay rent by e-transfer, cheque, or cash, as agreed.
How do I dispute a deposit disagreement?
Disputes can be taken to the Landlord and Tenant Board, who will review the case according to the Residential Tenancies Act.

How To: Protect Your Deposit and Respond to Rent Issues in Ontario

How to make sure your deposit is legal?
Confirm your landlord is only asking for last month's rent and—if given—a key deposit matching replacement cost. Refuse any requests for damage or pet deposits.
How to request your key deposit back?
After returning all keys at move-out, request your deposit with a written note or email. The landlord must return it promptly if no keys are missing.
How to respond to an illegal deposit request?
Politely explain the rules from the Residential Tenancies Act and offer to provide only legal deposits. If your landlord insists, contact the Landlord and Tenant Board.

Key Takeaways

Ontario law allows only a last month's rent deposit and (if needed) a refundable key deposit.
Damage and pet deposits are not legal in Ontario residential tenancies.
Keep copies of all payment receipts and communications with your landlord for your protection.

Need Help? Resources for Tenants

Landlord and Tenant Board (LTB) – file complaints, get forms, and read guides.
Residential Tenancies Act, 2006 – the provincial law for tenants and landlords.
Steps to Justice Housing Law – CLEO – plain language help on tenant rights.
Tenant Rights in Ontario – a complete factsheet of your rights province-wide.

Residential Tenancies Act, 2006: Ontario.ca - Residential Tenancies Act
Landlord and Tenant Board official site and forms: Ontario Landlord and Tenant Board
Forms and resources for Ontario tenancies: LTB Forms and Publications