What's allowed
In Ontario you may collect a rent deposit equal to one rental period's rent (usually one month). It can only be applied to the last month's rent — not to damage or cleaning.
What's not allowed
Damage deposits, key deposits beyond the actual replacement cost, and automatic cleaning fees are not permitted. You must also pay the tenant interest on the rent deposit each year, at the guideline rate.
Want this handled for you?
OLH Property Management’s licensed paralegals and Realtors® can manage the whole tenancy — notices, LTB filings, screening and rent collection. Or run it yourself with LandlordEzy, which includes an LTB order database and AI tools.
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