When you rent a new place, your landlord is only allowed to ask for a rent deposit and a key deposit.

A rent deposit cannot be more than one month’s rent on a yearly or month-to-month rental, or one week’s rent on a weekly rental. Your landlord must only use the deposit for your last rent payment. It cannot be used to pay for damage or other costs.

A key deposit cannot be more than the actual cost to replace the keys. If you return the keys when you move out, your landlord must give you back the deposit. The rules for keys also apply to entry cards, fobs, and other devices that open doors.

Interest on deposits

Your landlord must pay you interest on your rent deposit each year. The interest rate is the same as the rent increase guideline for that year.

If your rent goes up, your landlord can keep the year’s interest and add it to your rent deposit to make the deposit the same amount as your new rent.

Getting your rent deposit back

Sometimes you can ask your landlord to return the rent deposit. For example:

  • you already paid your last month’s rent in full
  • your landlord refused to let you move in

If your landlord does not give back your deposit or uses it for something other than your last month’s rent, you can apply to the Landlord and Tenant Board (LTB). You can also apply if you paid an illegal deposit or charge. You must apply within one year. Try to get legal help from a lawyer or a community legal clinic before you apply. See Where can I get legal help.

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