Deposits
Can my landlord keep my last month's rent deposit in Ontario?
No — the last month's rent (LMR) deposit must be applied to your actual last month of rent. A landlord can't keep it for cleaning, damage, or any other purpose, and they owe you interest on it every year at the rent-increase guideline rate.
By the LeasePlain Editorial Team · Checked against Ontario's Residential Tenancies Act per our editorial standards·Last reviewed August 2026
If your rent has increased since you paid the deposit, the landlord can ask you to top it up, or apply the annual interest toward that. They can't use the LMR deposit as a damage deposit.