The first month’s rent is used as a payment for the first month of your tenancy. The landlord in Ontario is permitted to require both the first and last months’ rent as a deposit, regardless of the type of residential property you are renting. Since the landlord can only use the money to cover the final month of your tenancy and not to pay for any damages, neither of these sums is actually regarded as a deposit.
The last month’s rent is already covered by the rent deposit. Therefore after giving the notice to discontinue the tenancy, tenants need to pay the next-to-last month’s rent.
In Ontario, Are Security Deposits Permitted?
The tenancy laws of the province of Ontario prohibit security deposits. Just the last month’s rent payment and a rent deposit equal to one full month’s rent, as well as any necessary key deposits, are accepted as types of deposits in the province.
While a rent deposit and a security deposit may sound similar, they operate differently since the landlord is only permitted to use the entire rent deposit to pay the previous month’s rent. If there are cleaning or damage fees, the landlord must submit an application to collect this money through the LTB.
In Ontario, Are Key Deposits Permitted?
Crucial deposits are permitted in Ontario as long as they adhere to a few crucial requirements:
- A modest deposit must be made to cover the expense of replacing the keys. The down payment is returnable.
- The Landlord shall return the key deposit in full upon the return of the keys by the tenant(s). The landlord may deduct money from the security deposit to cover the expense of replacing the keys if the tenants fail to return them.
What is the Ontario rent security deposit amount?
The most a landlord can ask for as a rent deposit in Ontario is one full month’s rent or the total cost of one renting period, according to the Residential Tenancies Act. Most tenants can be asked to pay, whichever is lower.
What Is The Ontario Interest Rate On Security Deposits For Rent?
If collected, landlords in Ontario are required to give tenants interest on their security deposit every 12 months. The annual rent increase guideline, chosen by the government of Ontario for each calendar year, will determine the proportion of interest paid.
What Types Of Deposits Are There In Ontario?
It’s crucial for renters in Ontario to understand which types of deposits are acceptable and required of them by law while looking for a place to rent in Ontario. Let’s briefly summarize:
Rent deposits: It is a primary form of the deposit that Ontario renters will encounter; we’ve already talked at length about them here. Rent can only be withheld as payment for the designated month, up to a maximum deposit value of one month’s rent.
Key Deposits: In the event that new keys are required, Ontario landlords may also ask for a deposit for lost or broken keys. Tenants have the right to ask for receipts to confirm that a reasonable amount was taken, and this sum shouldn’t be taken in excess of what it would cost to replace the item.
Damage Deposits: According to Ontario law, landlords are not permitted to demand a damage deposit after a leasing agreement is signed. The landlord must go via the Landlord and Tenant Board to request payment if there are damages to the flat or building while you are a tenant.
Pet deposits: These are also prohibited by Ontario law for landlords to demand.
Deposits more than one month’s rent or one week’s rent: Depending on the type of lease, Ontario landlords are only permitted to demand a deposit equivalent to the amount payable for one period, either one month or one week.
Can A Landlord Withhold My Deposit From Me?
No matter what the deposit was used for, landlords in Ontario are required to either return it or apply it toward the rent. When it comes to key deposits, this money can only be used to replace lost keys, and it can’t be more than it would cost to do so reasonably. Landlords are not permitted by law to utilize security deposits to pay for damages; instead, they must seek compensation from the Landlord and Tenant Board.
What Grounds Does A Landlord Have To Hold My Deposit?
Only if it has been agreed that the rent deposit would be used to cover your first and last month’s rent or if the landlord has collected a key deposit and needs to use it to replace any lost or broken keys may the landlord keep the rent deposit.
How I The Ontario Security Deposit Refunded?
In Ontario, landlords are required to repay the tenant’s security deposit within 30 days following the tenant’s departure from the rental property.
Only overdue rent, damage to the rental property, and other expenses incurred in connection with the rental agreement may be subtracted by the landlord from the deposit.
