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If the rent payments are monthly, the deposit cannot be more than one month’s rent.
However, it is illegal for a landlord in Ontario to demand a security deposit, for potential damages to a rental unit.
You should never agree to a requirement in your tenancy agreement if you are unsure of its effect!
Ernest Woo LLB is the articling student at Schwarz Law LLP and Jayson Schwarz LLM is the senior partner at the firm.
However, in practice, sometimes things do not go as smoothly.
A landlord may also demand a pet damage deposit which would cover damages to the property caused by your pet.
A tenant may also be able to get interest on the security deposit when the tenancy ends or is terminated.
Check with your local Landlord and Tenant Board to get up to date information on your rights.
Disclaimer: The article provided herein is for general information purposes only and not intended as or to be relied upon for legal advice.
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In Ontario, for example, a landlord can demand a rent deposit equal to one month’s rent, or the rent for one rental period, whichever is less.