Rules About Rental Deposits and Last Month's Rent

Many renters in Ontario have questions about deposits and last month's rent — what a landlord can legally collect, how to protect your money, and where to go if a dispute starts. This guide explains deposit rules in plain language for tenants and renters, what counts as an allowable last-month deposit, and practical steps to document payments, request refunds, and file an official application if needed. It also points to the Ontario legislation and the Landlord and Tenant Board so you can find forms and official guidance. Whether you're signing a lease, moving out, or responding to a notice, these clear steps will help you protect your rights and avoid common mistakes.

What landlords can legally collect in Ontario

In Ontario a landlord may generally accept a payment to cover the last months rent when you move in; that payment acts as prepayment toward the final month of tenancy. The rules governing what can be collected and how disputes are resolved are set out in the Residential Tenancies Act, 2006 ^[1] and enforced by the Landlord and Tenant Board ^[2].

Acceptable and prohibited deposits

• Last months rent: landlords may accept up to one months rent as a prepayment to be applied to your final month of tenancy.
• Damage or pet deposits: collecting a separate security deposit for damage is prohibited in Ontario under the RTA.
• Receipts and records: always get a dated, written receipt for any deposit or payment you make so you can prove it later.

How last month's rent works and what to expect

When you pay a last-month deposit the landlord should hold it as credit toward your last month of rent; they cant apply it to other months unless you agree. If the tenancy ends earlier or the rent changes, keep written communication about how the deposit will be handled and ask the landlord to confirm adjustments in writing. If you need official guidance or to start a dispute, the Landlord and Tenant Board provides information and application forms ^[2].

Protecting your deposit: practical steps

• Document the units condition with photos or video on move-in and move-out days.
• Always get a signed, dated receipt showing the amount, purpose ("last months rent") and payment method.
• Keep written communication: email or letters are best because they create a clear record.
• If you have questions about deposits, read the government guidance and consider contacting tenant help services listed below.

For more background on deposits and typical landlord practices see Understanding Rental Deposits: What Tenants Need to Know.

If your landlord wont return the last-month deposit

Follow these steps before filing an application: send a clear written request for the refund, include copies of receipts and move-out photos, set a reasonable deadline (for example, within 14 days), and keep proof of delivery. If the landlord does not respond or refuses, you can apply to the Landlord and Tenant Board for a monetary order and return of the deposit ^[2].

• Send a written request to the landlord and keep a copy for your records.
• Give a clear deadline, for example within 14 days, for the landlord to reply or return funds.
• If the issue is unresolved, apply to the Landlord and Tenant Board using the forms available on the tribunal website.

If youre preparing to move out or want step-by-step help getting money back, see How to Get Your Security Deposit Back with Interest When Moving Out for practical tips that apply when you leave a rental.

FAQ

Can a landlord ask for a security deposit beyond last months rent?

In Ontario landlords may generally only collect a last months rent payment; separate damage or security deposits are not permitted. See the Residential Tenancies Act for details ^[1].

What proof should I keep to show I paid a deposit?

Keep dated receipts, bank records, and move-in photos or videos. Written confirmation from the landlord is the strongest evidence if you later need to file a claim.

Can a landlord use my last-month deposit if I move out early?

A landlord should apply the deposit to your final month only; if you leave early you may still be responsible for rent under the lease unless you and the landlord agree otherwise.

How long will a Landlord and Tenant Board application take?

Timeframes vary depending on caseload; the Board provides scheduling and processing details on its site and through its forms page ^[2].

How-To

1. Gather evidence: receipts, bank statements, photos, and any written messages about the deposit.
2. Send a written refund request to your landlord and keep a copy; include a reasonable deadline for response.
3. If there is no reply within your stated deadline, prepare to file an application with the Landlord and Tenant Board.
4. Use the Boards forms page to choose the correct application and submit the required documents and fees.
5. Attend any scheduled hearing with your evidence and a clear timeline of events.

Help and Support / Resources

• Landlord and Tenant Board (Tribunals Ontario) - information and application forms
• [Residential Tenancies Act, 2006] - full text of the Act
• Ontario Government: Renting basics and tenants rights

1. [1] Residential Tenancies Act, 2006  Government of Ontario
2. [2] Landlord and Tenant Board (Tribunals Ontario)
3. [3] Landlord and Tenant Board forms and filing information