Rent and Deposit Rules for Ontario Tenants: Complete Guide

Understanding how rent and deposits work is essential for every tenant in Ontario. Laws in the province provide robust protections for tenants, but knowing the specifics about rent payments, deposits, and your rights will help you avoid surprises and build a positive rental experience. This guide explains rent and deposit rules in Ontario, what is legally required, and what to do if issues arise.

Rent in Ontario: What Tenants Must Know

In Ontario, your rent and how it's paid are governed by clear laws. Rent is the set amount your lease states you must pay monthly (unless you pay weekly or otherwise). Usually, rent includes the basics—but if additional services (like parking or utilities) are included, these should be listed in your rental agreement.

How and When Rent Is Paid

• Rent is normally due on the first day of each month, or as set out in your lease.
• Landlords cannot require rent post-dated cheques but may request them. You may choose not to provide them.
• They cannot demand more than one month's rent at a time.

For more practical tips on handling your monthly payments, visit Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

Security Deposits and Last Month’s Rent

Ontario law is specific about rental deposits. Landlords can only require a "last month's rent deposit"—this covers your final month's rent and must not be used for damages. Security deposits for damage are not allowed in Ontario residential tenancies.

• The last month's rent deposit cannot exceed one month's rent.
• Interest must be paid annually on your deposit (the rate matches Ontario’s rent increase guideline).
• Landlords cannot require a damage or security deposit, cleaning deposit, or pet deposit.

For a deeper understanding, see Understanding Rental Deposits: What Tenants Need to Know.

Deposit Rules and the Law

Your landlord’s ability to collect deposits is tightly regulated by Ontario’s Residential Tenancies Act, 2006^[1]. If your landlord asks for a deposit other than for last month’s rent, you can remind them this is not legal.

Legal Forms Every Ontario Tenant Should Know

The Landlord and Tenant Board (LTB) oversees rental disputes and is also where you submit specific forms if there are problems with your rent or deposits. Key forms include:

• Form N1: Notice of Rent Increase
  Used by landlords to notify you of a rent increase. Must be given at least 90 days before the increase.
  Access Form N1 here. Always check that your landlord uses the official form and timeline.
• Form T1: Tenant Application for a Rebate
  If you think you’ve been charged an illegal fee or your landlord owes you money (like withheld interest on your deposit), you can file this application.
  Download Form T1 and instructions. Example: If your landlord didn't pay annual interest on your last month’s rent, you could submit this form.
• Form T2: Application About Tenant Rights
  Use this if your landlord has collected unauthorized deposits or violated your rights.
  Access Form T2 here.

When using these forms, always read the attached information sheets for step-by-step filing instructions. You can file online, by mail, or in person at an LTB office.

Rent Increases and What’s Allowed

Landlords may only raise your rent once every 12 months, using the guideline set by the province. They must use the official N1 form and provide at least 90 days’ notice. Some newer buildings may be exempt—double-check your situation if your building was occupied after November 15, 2018. For more, see Understanding Rent Increases: What Tenants Need to Know.

Your Rights and What to Do If There’s a Problem

If you believe you’ve been charged an illegal deposit, had your rent increased illegally, or didn’t receive required interest, you can:

• Speak with your landlord in writing to resolve the issue.
• File a complaint using Form T1 or T2 at the LTB.
• Seek advice from tenant rights organizations or legal clinics.

If you want to know more about tenant rights related to rent, deposits, repairs, and more, explore Tenant Rights in Ontario.

For wider rental options, Browse apartments for rent in Canada quickly and securely.

1. What deposit can my landlord legally request in Ontario?
   Only a last month’s rent deposit is legal. Damage, security, cleaning, or pet deposits are not allowed under the Residential Tenancies Act.
2. What should I do if my landlord charges me an illegal deposit?
   Request the return of the deposit in writing, citing the law. If not returned, file Form T1 (Tenant Application for a Rebate) with the Landlord and Tenant Board.
3. Is my landlord required to pay interest on my last month’s rent deposit?
   Yes. Landlords must pay interest each year on your deposit, matching the provincial rent increase guideline. You can apply to the LTB if interest isn’t paid.
4. How much notice must my landlord give for a rent increase?
   Landlords must provide at least 90 days’ written notice using Form N1, and can only raise rent once each 12 months.
5. What if my landlord tries to use my last month's rent deposit for damages?
   This is not allowed. The deposit can only cover your last month's rent, not repairs or cleaning.

1. How can I file a complaint about rent deposits with the Landlord and Tenant Board?
   Use Form T1 or Form T2, available from the LTB website. Attach all supporting documents and follow instructions to submit online, by mail, or in person.
2. How do I object to an illegal rent increase?
   Carefully review the N1 form and, if you believe it's invalid, submit a T2 application and notify your landlord in writing.
3. How do I prove my landlord did not provide annual interest on my last month's rent deposit?
   Keep all rent payment records and communication. Use these as evidence when filing Form T1 with the LTB.

Key Takeaways for Tenants

• In Ontario, only a last month’s rent deposit is legal and must be credited to your last month, with interest paid annually.
• Landlords cannot ask for security, damage, or pet deposits.
• If you face problems, you have access to official forms and support through the Landlord and Tenant Board.

Make sure to read your lease, know your rights, and act quickly if conflicts arise.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) Ontario — Official forms, applications, and guides
• Community Legal Clinics — Legal advice for low-income tenants throughout Ontario
• Tenant Rights organizations such as ACTO (Advocacy Centre for Tenants Ontario)
• Tenant Rights in Ontario — Comprehensive resource on protections and legislation

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1. Residential Tenancies Act, 2006 (Ontario)
2. Landlord and Tenant Board - Ontario

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