"Are Rent Security-Deposits Illegal in Ontario?"
Did you know it’s illegal to ask tenants for a security or damage deposits? The first and last months’ rent, otherwise known as a rent-deposit, is the only deposit a landlord may legally collect. If a key deposit is requested, the amount is then refundable upon the the lease agreement coming to an end.
Key Points:
If the keys/fobs are not returned to the landlord, the deposit amount forfeited, cannot exceed the actual replacement cost.
Property owners must return the deposit when the tenant returns the keys/fobs.
If a landlord requests any other forms of deposit (i.e. above the first and last months’ rent and/or a refundable key deposit), the landlord must repay such sums to the tenant.
Failing to do so, may result in a fine under the Residential Tenancies Act or the Ontario Human Rights Tribunal.
Should a tenant damage a unit, the landlord may issue a notice of termination and/or request payment for the damages. If the tenant refuses to pay, the property owner may contact the Landlord & Tenant Board to determine next steps.
