Security Deposits & Last Month's Rent in Ontario

Living in Ontario as a renter means knowing what a landlord can legally ask for before you move in and what you can expect when you move out. This guide explains how security deposits and last month’s rent work under Ontario rules, what is allowed, and the steps tenants can take to protect their money and records. You’ll learn what to document, how to ask for a refund, timelines to follow, and where to find official forms and help. Practical examples and clear action steps make it easier to respond to a dispute, file an application with the Landlord and Tenant Board, or negotiate a fair outcome with your landlord.

What landlords can and cannot ask for in Ontario

Under Ontario rules a landlord may ask for a rent deposit that is held as credit toward the last month’s rent, but Ontario law does not allow a separate damage security deposit beyond a rent deposit. For details, see the Residential Tenancies Act, 2006.^[1]

• Last month’s rent deposit (credited toward final month) — commonly requested at signing.
• Separate damage or key deposits beyond last month’s rent are generally not permitted in Ontario.
• Keep a written record and photos of the unit when you move in to prevent unreasonable deductions at the end of tenancy.

How last months rent deposits work

When you give a landlord a last months rent deposit it is applied to your final month of tenancy unless you owe rent earlier. If you and your landlord agree to end the tenancy earlier, you should get a written agreement showing how the deposit will be handled. For guidance on tenant rights and standard deposit practices, see Understanding Rental Deposits: What Tenants Need to Know.

• Amount: usually equals one months rent and is held as credit, not a separate damage hold.
• Record keeping: ask for a receipt and save all communications about the deposit.
• Timing: confirm in writing when the deposit will be applied or returned to avoid disputes.

If a landlord refuses to return the deposit or deducts unfairly, tenants can ask for a written explanation and copies of any receipts for repairs. If that does not resolve the issue, the Landlord and Tenant Board handles disputes and applications regarding deposits and other tenancy matters.^[2]

Steps to request a refund or dispute a deduction

Follow clear steps so you can show a judge or adjudicator the evidence if you need to file an application. Many tenants find it helpful to review practical filing advice before starting a claim; see How to Get Your Security Deposit Back with Interest When Moving Out for a step-by-step approach.

1. Send a written request for the deposit with dates and an itemized explanation of why you believe you are owed money.
2. If the landlord replies with deductions, ask for receipts and estimates for repairs within a reasonable time.
3. If you cannot resolve the issue, note the deadlines to apply to the Landlord and Tenant Board and prepare your evidence.
4. File the appropriate application and forms with the Landlord and Tenant Board; see the official forms and guides for exact steps.^[3]

FAQ

Can a landlord ask for a security deposit in Ontario?

No. In Ontario a landlord may request a last months rent deposit but generally cannot require an additional security deposit for damages; check the Residential Tenancies Act, 2006 for details.^[1]

What if my landlord keeps my last months rent without explanation?

Ask for an itemized explanation and receipts. If that does not resolve it, gather photos, receipts, and messages and consider filing an application with the Landlord and Tenant Board.^[2]

Which forms do I use to apply to the Landlord and Tenant Board?

Use the official application forms on the Landlord and Tenant Board forms page; the guides show which application fits deposit disputes and how to file.^[3]

How-To

1. Gather evidence: dated photos, a copy of your lease, payment receipts, and any written messages about the deposit.
2. Request a written refund: send a clear letter or email asking for the deposit return and keep a copy.
3. Wait for a reasonable reply: allow time for the landlord to respond and to provide receipts for any deductions.
4. If unresolved, complete the correct LTB application and submit supporting evidence to start a hearing.

Key Takeaways

• In Ontario, last months rent is a permitted deposit but separate security deposits for damage are generally not allowed.
• Always get receipts and document the unit at move-in to reduce the chance of unfair deductions.
• If you cannot resolve the issue, the Landlord and Tenant Board can decide on deposit disputes.

Help and Support / Resources

• Landlord and Tenant Board (LTB)  applications, hearings, and decisions
• Residential Tenancies Act, 2006  full legislation
• Landlord and Tenant Board forms and guides  official filing resources

1. [1] Residential Tenancies Act, 2006 - Government of Ontario
2. [2] Landlord and Tenant Board - Tribunals Ontario
3. [3] Landlord and Tenant Board Forms - Tribunals Ontario