Question 1

Can a landlord charge a security deposit AND last month's rent in Ontario?

Accepted Answer

No. In Ontario, landlords can only collect a last month's rent (LMR) deposit. They cannot charge a separate security deposit for damages. The LMR must earn interest at the rate set annually by the government.

Question 2

Does Quebec really not allow security deposits?

Accepted Answer

Correct. Quebec law prohibits landlords from collecting any security deposit or damage deposit. The only upfront money allowed is the first month's rent. Landlords who charge deposits are violating the law and the amount must be returned.

Question 3

Can I negotiate a lower deposit?

Accepted Answer

Deposits are capped by law, not minimums. A landlord could agree to collect less, but cannot legally demand more than the provincial cap. Get any agreement in writing.

Question 4

What is a last month's rent deposit used for?

Accepted Answer

In Ontario, the LMR is applied to your final month's rent — it is not a damage deposit. The landlord cannot use it to cover repairs or cleaning. It must be returned or applied to your last month if you give proper notice.

Question 5

Can a landlord charge separate fees for a key deposit, parking deposit, or application fee?

Accepted Answer

Application fees are illegal in most Canadian provinces. Key deposits are allowed in some provinces but must be refundable. Parking deposits vary. Any charge not permitted by provincial law is illegal and should be refused in writing.

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