Sharing a rental can make money and responsibility easier, but roommates often disagree about deposits and who pays what. This guide explains what renters and tenants in Ontario need to know about rent deposits — including what a landlord may legally require, how to document payments between roommates, and how to handle disputes with proof. It covers permitted rent deposits, returning last-month rent, key deposits, and practical steps for roommates who move out early or owe an unpaid share. Use this information to protect your rights, avoid misunderstandings, and follow official complaint and tribunal routes if needed. Read on for examples, forms, and clear action steps.
What Ontario law allows on deposits
In Ontario the Residential Tenancies Act, 2006 governs what landlords can and cannot charge tenants. Landlords generally may request a rent deposit for last months rent or a refundable key deposit, but they cannot require an extra "security deposit" for damage beyond permitted charges under the law[2]. If you have a dispute about rent or a withheld deposit you can apply to the Landlord and Tenant Board for resolution[1].
What landlords can and cannot charge
- Landlords may request a rent deposit for last-month rent or a refundable key deposit where reasonable.
- Landlords may not require additional unspecified "security" deposits for damages in most standard residential tenancies.
- Any deposit or deduction should be clearly documented in writing and supported by receipts or invoices for actual costs.
Roommate agreements and documenting deposits
Roommates should create a simple written agreement showing how rent and any rent deposit are split, who paid what, and how the last-month rent will be handled. Keep all receipts, bank transfers, and a dated log of payments so each roommate can show their paid share if the landlord applies the rent deposit to the lease or withholds funds.
If you need general background about types of deposits and tenant protections, see Understanding Rental Deposits: What Tenants Need to Know for broader context.
When deposits must be returned and common landlord reasons to deduct
When a tenancy ends the landlord should either apply the rent deposit to the tenants last rent as agreed or return any refundable deposit minus documented charges. Typical lawful deductions are unpaid rent or documented costs such as rekeying when keys are not returned; undocumented or speculative deductions should be challenged in writing.
How to handle a roommate dispute about a shared deposit
- Start by sharing receipts and a written split agreement to confirm each persons paid amount.
- Send a clear written request to the roommate asking for the owed share and keep a copy.
- If the roommate refuses, you may need to use small-claims court or an application to the Landlord and Tenant Board depending on the issue and whether the landlord withheld funds[1].
Official forms and where to get help
To raise a formal dispute with the Landlord and Tenant Board you will need the Boards forms and guidance on how to apply; the Boards forms page has the current application packages and instructions[3]. For the exact wording of tenant and landlord rights consult the Residential Tenancies Act, 2006 for Ontario[2]. If you want a simple, searchable place to look for rental listings or to compare what others are paying in your area, you can also check Houseme - your rental solution in Canada for listings and context.
FAQ
- Can a landlord ask me or my roommates for a security deposit in Ontario?
- Under Ontario law a landlord may request a rent deposit for last-month rent or a reasonable key deposit, but cannot require an extra unspecified security deposit for damages; check the Residential Tenancies Act for details and seek the Board if unsure[2].
- How should roommates split and record a last-month rent deposit?
- Agree the split in writing, exchange receipts or transfer records, and keep a dated ledger so each roommate can prove their paid share when the deposit is applied at move-out.
- What can I do if the landlord withholds part of a deposit unfairly?
- Ask for an itemized invoice, send a written demand for return, and if unresolved file an application with the Landlord and Tenant Board using the Boards forms and guidance[3].
How-To
- Collect all documents: lease, receipts, bank transfers, and any written messages showing who paid what.
- Write a clear request to the landlord and your roommates stating the amount you seek and attach proof.
- Follow up by phone if needed and note the date, time, and person you spoke to for your records.
- If the matter is not resolved, complete the appropriate Landlord and Tenant Board application and submit it per the Boards instructions[3].
- Keep copies of the Board filing and any orders; use the order to collect amounts owed if the Board rules in your favour.
Help and Support / Resources
- Landlord and Tenant Board (applications and guidance)
- Residential Tenancies Act, 2006 (legislation)
- Landlord and Tenant Board forms and filing instructions
