Ontario renter guide
Rental deposits in Ontario: what's legal and what isn't
Last verified: July 14, 2026. Last updated: .
The short answer: in Ontario, a landlord can only collect two things up front: a last month's rent deposit and a refundable key deposit. Security deposits, damage deposits, and pet deposits are illegal, no matter your credit score, your income, or whether you have pets.
What deposits can an Ontario landlord legally collect?
Last month's rent (LMR). This deposit can only be applied to your final month of tenancy. It is not a damage fund, and the landlord can't dip into it for repairs.
Key deposit. Must be fully refundable and can't exceed the actual replacement cost of your keys, fobs, or entry cards.
What deposits are illegal in Ontario?
Security deposits, damage deposits, and pet deposits are completely illegal in Ontario. This surprises a lot of people on both sides of the lease. Even if an applicant has bad credit, the landlord's only lawful deposits are last month's rent and keys. If a tenant damages the unit, the landlord's remedy is to bill for the repair or file a claim with the Landlord and Tenant Board (LTB), not to hold money up front.
Who pays for damage versus ordinary wear and tear?
Tenants are responsible for undue damage they or their guests cause, like a broken window or a hole in the wall. Ordinary wear and tear from normal living is the landlord's responsibility, and no deposit can be charged against either.
Do I need a written lease, and how does the withhold-a-month rule work?
Most Ontario tenancies signed on or after April 30, 2018 must use the Ontario Standard Lease form. If your landlord hasn't given you one, ask for it in writing. If it still hasn't arrived 21 days after your written request, you're legally permitted to withhold one month's rent. One nuance worth knowing: you may only keep that withheld month if the lease still hasn't been provided 30 days after you started withholding, and the maximum is one month.
Frequently asked questions
What kind of deposits can an Ontario landlord ask for?
Only two: a last month's rent deposit, applied to your final month, and a fully refundable key deposit capped at the replacement cost of the keys.
Can I be charged a security deposit if I have bad credit?
No. Credit score doesn't change the law. Last month's rent and a key deposit are the only legal collections.
Can my landlord use my last month's rent deposit to cover damage?
No. The LMR deposit can only go toward your final month of rent. Damage claims go through billing or the LTB.
Do I need a written lease?
For most tenancies signed on or after April 30, 2018, yes, on the Ontario Standard Lease form, and you have the right to demand one.
Sources
- Ontario's guide to the standard lease (ontario.ca)
- Landlord and Tenant Board (tribunalsontario.ca)
Direct links to the Residential Tenancies Act, the Landlord and Tenant Board, and the Ontario Standard Lease are on our RTA resources page.
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The information provided on Tenant.ca is for educational purposes and does not constitute legal advice. Landlord and tenant matters in Ontario are governed by the Residential Tenancies Act (RTA) and adjudicated by the Landlord and Tenant Board (LTB). Please consult the LTB or a legal professional for guidance on your specific situation.