Whether or not a landlord can ask for a security deposit for a rental property varies depending on the jurisdiction. A security deposit is usually equivalent to one month’s rent, either the first or last. In Ontario, landlords are only allowed to ask for a rent deposit and none of it can be used for repairs to the property. Landlords in Quebec cannot ask for a deposit at all. Refer to the Provincial and Territorial Fact Sheets for information relating to each specific province regarding what landlords can require from new tenants.
In a vast majority of jurisdictions throughout Canada, landlords can ask tenants to pay more towards their deposit if there is a rent increase, though this is rarely the case.
All across different parts of Canada, tenants are legally entitled to their deposit after they move out. If the deposit given is used to pay last month’s rest, however, they do not get their deposit back. If a provincial authority holds the deposit or the person renting the property pays their last month’s rent, they have every right to their deposit when they leave. The accumulated interest typically equals the difference between the monthly rent at the beginning and end of the renting period.
The landlord may be able to use some of the deposit to cover unpaid rent, though this depends on the location.afe A deposit can also sometimes be used for cleaning or repairs to the property if necessary. Refer to the Provincial and Territorial Fact Sheets for information relating to specific places throughout Canada. The way interest is calculated varies depending on where the person lives. More information on this subject can be found in the Move Out section.
If you give a security deposit to a landlord, you will definitely want to make a point of getting a receipt with the address of the apartment as well as the name and contact information of the person who accepted it.