Moving out of a rental can be stressful, especially when a landlord keeping deposit in Ontario becomes an issue.
A big proportion of tenants are not aware of their rights and what they can do in case of the wrongful withholding of their deposit.
The tenants’ rights under Ontario law safeguard the tenants by specifying what deposits landlords can collect and how they can be used.
Understanding these rules helps tenants prevent conflicts and handle a deposit dispute Ontario effectively.
Which Deposits are legal in Ontario?
Only the rent of the previous month can be deposited by the landlords in Ontario. This is saved to cover the last month of rent.
Cleaning, minor repairs, and damages caused due to normal wear and tear are not extra deposits that the landlords may request from them. Embezzlement of the deposit is a typical cause of conflict.
Housing report shows that the landlords make around 25-30% of the deposit complaints, where some are trying to withhold the money for minor repairs, which are not the responsibility of the tenants.
Under What Circumstances can a Landlord retain the Deposit?
The only situations that allow a landlord to retain the deposit are when the tenant fails to pay last month rent.
The deposit cannot be utilized in:
- Normal wear and tear
- Routine cleaning
- Minor repairs
In case of any serious damage that has gone beyond the normal use, the landlords have to apply to the Landlord and Tenant Board rather than retain the deposit.
This distinction is a key point in resolving any deposit dispute Ontario.
Steps Tenants Should Take Immediately
You have deposited money, and it is being held back, and you can do something about it:
- Ask the landlord to give a written statement of why the deposit is being held.
- Check your rights in terms of the lease contract and records of payment.
- Take photos, emails, or receipts indicating how the property was when you left.
Strong documentation significantly improves the chances of resolving a landlord keeping deposit Ontario dispute.
Making a Claim at the Landlord and Tenant Board
In case the landlord denies the tenants their deposit, tenants may make an application to the Landlord and Tenant Board.
Evidence can be provided by both the tenant and the landlord and the decision is taken by the board in a binding manner.
In case the landlord retained the deposit unjustly, the board is able to direct the landlord to reimburse the deposit.
There is statistical evidence that deposit issues are one of the most common applications to be made to the board annually, as a result of which it is necessary to inform tenants about their rights.
Case Study: Deposit Dispute
In the case a tenant made a payment of last month rent deposit. The landlord retained the deposit to pay for some minor wall scratches after the tenant moved out.
The tenant had made a claim at the Landlord and Tenant Board. The board went through photographs and the lease agreement and found that normal wear and tear is the responsibility of the landlord. The defendant was directed to give back the entire deposit.
This example demonstrates how tenants can resolve a deposit dispute Ontario when the landlord attempts to withhold funds unfairly.
Why These Disputes Happen
The opposite of this is the deposit dispute that occurs due to the misinterpretation of the law by many tenants and landlords.
According to the latest housing reports, around 20% of all tenant complaints are related to deposit procedures, which are usually associated with bad documentation or misunderstanding.
Knowing your rights can prevent conflicts and help resolve a landlord keeping deposit Ontario situation faster.
How To Prevent Deposit Disputes.
There are simple steps tenants should take to avoid disputes:
- Stock lease agreements and deposit receipts.
- Take descriptive pictures of the rented apartment and then leave.
- Clean up the premises and cleanse them of personal belongings.
These steps provide clear evidence in case of a deposit dispute Ontario and reduce the risk of financial loss.
Comparison of Ontario and the Other Provinces.
The Ontario rules are more rigid than the majority of provinces.
British Columbia: Security deposit is half a month’s rent, which is refunded within 15 days.
Alberta: Refund of security within 10 days when no deductions need to be made.
Ontario permits only that rental deposit be made on a last month basis, which saves tenants against unjustified deductions.
This makes landlord keeping deposit Ontario less common compared to provinces with fewer restrictions.
Conclusion
Knowing what to do in case of withholding of deposit by a landlord is very important to tenants in Ontario.
The last month of the tenancy is the duration after which the landlords can only collect the deposit for the rent.
They are unable to hold on with the deposit to clean, to do minor repairs, or to have normal wear. To resolve a deposit dispute Ontario, the tenants need to seek clarification, find evidence and read through their lease.
As a last resort, one has to apply to the Landlord and Tenant Board in case the problem cannot be resolved.
The board can direct such an individual to pay the deposit back in case the landlord had failed to pay the deposit in an unfair manner. Call us now and get free consultancy on deposit disputes and save money and rights.
FAQs
Is there a limitation on a security or damage deposit that a landlord in Ontario may charge?
No. In Ontario, the Residential Tenancies Act, 2006, landlords are only allowed to collect last month’s rent deposit. Deposits of security, damage, or other kinds are forbidden.
Under what and when can a rent deposit be entertained in Ontario?
Only in the end of the tenancy, you need to apply a rent deposit in respect of the final month of your rent. It cannot be repaired, cleaned or any charges laid on it.
How should the tenants feel when a landlord denies rent deposit illegally?
Begin by requesting the landlord to write back to you with the deposit. In any case that it is not resolved, you may request a decision to be made by the Landlord and Tenant Board (LTB) (e.g. by filing Form T1 or T2) to be refunded the deposit and any accrued interest.
Are there any interest-earning rent deposits in Ontario?
Yes. The Ontario rent increase guideline requires the landlords to pay the annual interest on the rent deposit. Failure to pay rent deposit with interest means that the tenants can either request it in writing or submit the same to the LTB.
What is the importance of documenting your Rental property before moving out?
Capturing the picture of the state of your unit with time-stamped photos, checklists, and records of communication is a way of preserving your rights. This is evidence that can be used in disputing unlawful deposits in the Landlord and Tenant Board.