Deposits & last month's rent
What you can collect — and what you can't — in Ontario, plus how to record it.
General information, not legal advice. Ontario rules and timelines change — always confirm the current forms and requirements with the Landlord and Tenant Board or a licensed paralegal before acting.
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.
Record it in LandlordEzy
Log the last-month deposit (and a refundable key deposit) against the tenancy — it's held separately and never counted as rent owing or reported to Equifax. See record & verify a deposit. When you raise the rent, top the deposit up to the new amount in one click.
Ready to do this in LandlordEzy?
Record a deposit