Rent and Deposit Rules for Ontario Tenants: Complete Guide

Rent & Deposits Ontario 6 min read · published March 09, 2026 Flag of Ontario

Ontario tenants should understand how rent, last month's rent deposits, rent increases, and Landlord and Tenant Board (LTB) applications work. This guide explains what landlords may request, which payments are not allowed, how rent increases are handled, and what to do when a problem arises.

Keep a copy of your lease, rent receipts, notices, and written communications with your landlord. Check the exact due date and amount in your lease. If a request or charge does not match your agreement or the rules described here, ask your landlord about it in writing and keep a record.

Rent in Ontario: What Tenants Must Know

Your lease should state the rent you must pay and when it is due. Rent is commonly paid monthly, although a lease may set out weekly or another payment schedule. If services such as parking or utilities are included in the rental arrangement, they should be listed in the agreement.

How and When Rent Is Paid

  • Rent is normally due on the first day of each month, unless your lease sets out a different due date.
  • A landlord cannot require post-dated cheques, although the landlord may ask for them. You can choose not to provide them.
  • A landlord cannot demand more than one month's rent at a time.

For practical information about monthly payments, see Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

Only a last month's rent deposit is allowed. It must be credited to your final month of rent and cannot be used for damage, cleaning, or repairs. If a landlord asks for another type of deposit, respond in writing, keep your records, and consider contacting the LTB.

Security Deposits and Last Month’s Rent

Ontario residential landlords may require a last month's rent deposit, but not a damage or security deposit. The last month's rent deposit is for the final rental period and must not exceed one month's rent.

  • The last month's rent deposit cannot be more than one month's rent.
  • Interest must be paid annually on the deposit at a rate matching Ontario's rent increase guideline.
  • Damage, security, cleaning, and pet deposits are not allowed.

For more information about deposits, read Understanding Rental Deposits: What Tenants Need to Know.

A last month's rent deposit is not a general security deposit. Do not assume that a landlord can use it to pay for damage, cleaning, or repairs. If the deposit is used for something other than the final month's rent, keep the lease, payment records, and related communications.

Deposit Rules and the Law

The rules about deposits are set out in Ontario's Residential Tenancies Act, 2006[1]. If your landlord requests a deposit other than a last month's rent deposit, ask for clarification in writing and keep a copy of the request and your response.

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If you need to apply to the LTB, gather your lease, notices, rent payment records, deposit information, and written communications first. Use the official LTB form that matches your issue and read the attached instructions. Missing documents or using the wrong form can slow your case.

Legal Forms Every Ontario Tenant Should Know

The Landlord and Tenant Board (LTB) handles rental disputes and provides forms for tenants and landlords. The following forms may be relevant to rent and deposit concerns:

  • Form N1: Notice of Rent Increase
    A landlord uses Form N1 to give notice of a rent increase. The notice must be provided at least 90 days before the increase.
    Access Form N1 here.
  • Form T1: Tenant Application for a Rebate
    A tenant may use Form T1 when the landlord owes money, including a rebate or unpaid interest on a last month's rent deposit, or when an illegal fee or payment is involved.
    Download Form T1 and instructions.
  • Form T2: Application About Tenant Rights
    Form T2 is used when a tenant believes the landlord has violated tenant rights, including by collecting an unauthorized deposit.
    Access Form T2 here.

Read the information sheet that comes with the form before filing. The page states that applications can be filed online, by mail, or in person at an LTB office.

Rent Increases and What’s Allowed

A landlord may increase rent only once every 12 months. The landlord must use the official N1 form and provide at least 90 days' notice. The amount may be subject to the provincial rent increase guideline. Some newer buildings may be exempt from typical increases; if the building was occupied after November 15, 2018, check the situation carefully.

A rent increase should be checked against three points: when the previous increase took effect, whether at least 12 months have passed, and whether at least 90 days' notice was provided using Form N1. Keep the notice with your lease and rent records.

For more information, see Understanding Rent Increases: What Tenants Need to Know.

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

If you believe you were charged an illegal deposit, received an improper rent increase, or did not receive required interest on your last month's rent deposit, take these steps:

  • Review your lease, payment records, notices, and the request or charge in question.
  • Write to your landlord clearly describing the issue and what you are asking to have corrected.
  • If the issue is not resolved, review the official LTB forms and consider Form T1 or T2, depending on the problem.
  • Seek advice from a tenant rights organization or community legal clinic if you need help.
Keep copies of every message and document. If you apply to the LTB, attach supporting records and follow the instructions for the form you submit.

For broader information about rent, deposits, repairs, and other protections, visit Tenant Rights in Ontario.

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

Common Questions About Rent and Deposits

  1. What deposit can my landlord legally request in Ontario?
    A landlord may request only a last month's rent deposit. Damage, security, cleaning, and pet deposits are not allowed.
  2. Can a landlord use my last month's rent deposit for damage?
    No. The deposit is for your final month's rent and must not be used for damage, cleaning, or repairs.
  3. Is interest required on a last month's rent deposit?
    Yes. Interest must be paid annually at a rate matching Ontario's rent increase guideline. A tenant can apply to the LTB if the required interest is not paid.
  4. How much notice is required for a rent increase?
    The landlord must provide at least 90 days' notice using Form N1. Rent can be increased only once every 12 months.
  5. What should I do about an illegal deposit?
    Ask for its return in writing, keep proof of the payment and request, and consider filing Form T1 or Form T2 with the LTB.

How to Prepare an LTB Application

  1. Collect your records.
    Keep your lease, rent receipts, deposit records, notices, and communications with your landlord together.
  2. Choose the appropriate form.
    Form T1 may apply when money or a rebate is involved, including unpaid deposit interest. Form T2 may apply when tenant rights were violated.
  3. Read the instructions.
    Use the official form and follow its information sheet before submitting it online, by mail, or in person.
  4. Keep copies.
    Save the completed application and all supporting documents for your records.

Key Takeaways for Tenants

  • Only a last month's rent deposit is allowed, and it cannot exceed one month's rent.
  • The deposit must be credited to the final month and earns annual interest at the applicable rent increase guideline rate.
  • Damage, security, cleaning, and pet deposits are not allowed.
  • Rent increases can occur only once every 12 months with at least 90 days' notice using Form N1.
  • Written records help you address problems and prepare an LTB application.

Read your lease carefully, keep your payment records, and ask questions in writing when a rent or deposit request is unclear.

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

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

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David Chen
David Chen

Tenant Law Analyst, Tenant Rights Canada

David specializes in Ontario residential tenancy law and Northern territories housing regulations. He has followed developments at the Landlord and Tenant Board closely for over eight years and writes extensively on LTB procedures, rent increases, and maintenance obligations.