Can My Landlord Charge a Rental Application Fee in Ontario?

OHI | Can My Landlord? · Ontario rental question #33

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Last verified: September 15, 2026

Section 134 of the RTA generally prohibits landlords from collecting or attempting to collect unauthorized fees, premiums, commissions, bonuses or penalties. The permitted rent deposit and refundable key deposit follow separate rules.

A payment does not become lawful merely because it is labelled an “application fee,” “administration charge” or “credit-check fee.” Its real purpose and whether it is refundable matter.

What can a landlord collect before move-in?

A landlord may generally request a rent deposit up to one rent period, commonly last month’s rent, once the tenancy is being entered into. A refundable key deposit may also be permitted within replacement-cost limits.

Can an outside screening company charge the applicant?

Third-party products vary. Landlords and applicants should examine who requires the purchase, what is provided and whether the arrangement is effectively an indirect landlord fee. Editorial or affiliate services should never be represented as legally mandatory.

What if the fee is promised back?

A refundable holding payment can still create disputes about whether a tenancy was formed and when money must be returned. Terms should be clear and documented before payment.

What should a tenant do?

• Ask whether any payment is refundable and what it will be applied to.
• Get the property, landlord and payment terms in writing before sending money.
• Keep receipts, advertisements and application messages.
• Be cautious of urgent transfers or fees before viewing and verifying the rental.

What should a landlord do?

• Do not charge applicants simply for the privilege of applying.
• Use lawful, consistent screening and absorb ordinary business costs.
• Document permitted deposits accurately and issue receipts.
• Avoid labels that disguise an unauthorized fee.

Example

A landlord requires every applicant to pay a non-refundable $75 processing fee. That is different from accepting a lawful last-month rent deposit after agreeing to the tenancy.

Official sources

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

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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. Outcomes depend 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.