Can My Landlord Charge a Key Deposit in Ontario?

OHI | Can My Landlord? · Ontario rental question #18

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Last verified: September 15, 2026

Ontario Regulation 516/06 permits payment of a refundable key deposit if the amount does not exceed the expected direct replacement cost. The rule can apply to keys, remote-entry devices or cards.

The landlord should be able to explain what is covered and how the amount reflects replacement cost. Calling a charge a “key deposit” does not make an excessive or non-refundable fee lawful.

How much can the deposit be?

There is no universal flat amount for every building. The ceiling is tied to expected direct replacement cost. A standard metal key may cost much less than a specialized fob or garage remote.

When should it be returned?

The deposit is refundable when the tenant returns the keys or devices at the end of the tenancy. Both parties should document what was issued and returned.

Can the landlord deduct unrelated damage?

A key deposit is not a general damage fund. Unrelated cleaning, rent or repair claims should not be taken from it merely because the landlord holds the money.

What should a tenant do?

• Ask for a receipt listing each key, card or remote and the deposit amount.
• Keep proof of payment and obtain written confirmation when devices are returned.
• Report a lost device promptly and ask for the actual replacement-cost breakdown.
• Do not confuse a lawful refundable key deposit with an unlawful damage deposit.

What should a landlord do?

• Base the deposit on expected direct replacement cost and keep supporting records.
• Provide a receipt and inventory of devices issued.
• Return the deposit promptly when the devices are returned.
• Handle unrelated rent or damage claims separately through the lawful process.

Example

A condo fob costs the landlord $85 to replace, and the landlord collects and later refunds $85. That may fit the rule. A non-refundable $300 “key and administration fee” requires a different analysis and may be unlawful.

Official Ontario sources

• Residential Tenancies Act, 2006
• Landlord and Tenant Board: Renting in Ontario
• Current LTB forms, instructions and filing information

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General information only: This article discusses Ontario residential tenancies and is not legal advice. Some rentals are exempt from all or part of the RTA. The outcome of a dispute depends on the facts and evidence. Rules and forms can change; verify current information with Tribunals Ontario or obtain advice from a licensed Ontario legal professional.