OHI | Can My Landlord? · Ontario rental question
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Last verified: September 12, 2026
Quick answer: Generally, no. For tenancies covered by Ontario’s RTA, a landlord can usually require a rent deposit for the last rental period and a refundable key deposit limited to expected replacement cost—not a separate damage, security or pet deposit.
What deposits are normally allowed?
The rent deposit cannot exceed one month’s rent or one rental period, whichever is less, and must be applied to the last rental period rather than held as a general damage fund. The landlord generally owes annual interest on that deposit.
A refundable key, remote or access-card deposit may be permitted if it is no more than the expected direct replacement cost.
Why is a damage deposit different?
A damage deposit gives the landlord money in advance to cover a future claim that may never arise. Ontario’s standard-lease guidance says tenants do not have to provide other forms of deposit such as pet or damage deposits.
Renaming it a “security deposit,” “cleaning deposit” or “move-out deposit” does not necessarily make it lawful.
Who pays for actual damage?
The deposit rule does not eliminate tenant responsibility. A tenant may be responsible for undue damage caused wilfully or negligently by the tenant, an occupant or a guest. Normal wear and tear is different. If the parties cannot agree, the landlord can use the appropriate LTB application rather than simply treating an unlawful deposit as automatic compensation.
What if the tenant already paid the deposit?
A tenant who believes an illegal charge was collected may be able to seek repayment through the LTB, commonly using a T1 application. Limitation periods apply, so the tenant should check the current form instructions promptly.
Practical checklist
- Get a receipt for every deposit or payment.
- Identify in writing what the money is for.
- Complete a move-in condition record with dated photos.
- Keep repair invoices and communications.
- Do not deduct disputed amounts without understanding the legal process.
OHI guides and tools
- Rental Deposits in Ontario: What Landlords Can and Cannot Collect
- Can a Landlord Charge a Tenant for Damage?
- Ontario LTB Tenant Applications: T1 to T7
- Ontario Rental Inspection Checklist
Frequently asked questions
Can a landlord use last month’s rent for damage?
The rent deposit is intended for the last rental period, not as a general damage deposit.
Can the key deposit be hundreds of dollars?
It must be refundable and not greater than the expected direct replacement cost, so the amount should be supportable.
Official Ontario sources
General information only: This article concerns Ontario residential tenancies and is not legal advice. Some rentals are exempt from all or part of the RTA. Verify current rules with official Ontario sources or obtain advice from a licensed Ontario legal professional.