In Ontario, it is completely illegal for a landlord to request a damage deposit, pet deposit, or cleaning deposit at any time. The only legal deposits under the Residential Tenancies Act are a Last Month’s Rent (LMR) deposit and a refundable key deposit. If a landlord demands illegal fees, you can refuse and file a T2 application with the LTB.
Finding a great apartment in cities like Toronto, London, or Kitchener is hard enough without landlords suddenly moving the financial goalposts.
Sometimes, a few weeks after you move in, a landlord might knock on your door and ask for an extra $500 as a “security deposit” against potential damages, or demand a $300 “pet fee” because they noticed you have a cat. This tactic is used frequently against students, newcomers to Canada, and young professionals who may not know their rights.
You must understand one absolute rule under the Residential Tenancies Act (RTA): damage and security deposits are explicitly illegal in Ontario. 💰 Even if the landlord slipped a clause into your lease saying you agree to pay a damage deposit, that clause is legally “void and unenforceable.” You cannot be evicted for refusing to pay an illegal charge. If you are facing harassment over these fake fees, here is exactly how to protect yourself.
Step-by-Step Process to Handle Illegal Deposit Demands
Dealing with a landlord who breaks the rules requires keeping a cool head and documenting everything. Follow these steps to ensure you are legally protected from retaliation.
Step 1: Identify Which Deposits Are Illegal
First, be absolutely sure of what they are asking for. 📝 In Ontario, a landlord can only ask for a Last Month’s Rent (LMR) deposit before you move in, and a refundable Key Deposit (which cannot be more than the actual cost of replacing the keys or fobs). Anything else-whether they call it a damage deposit, security deposit, pet fee, cleaning fee, or furniture deposit-is 100% illegal.
Step 2: Refuse the Request in Writing
Do not simply argue in the hallway. Send your landlord a polite but firm email or text message. State: “As per the Ontario Residential Tenancies Act, damage and security deposits are illegal. Therefore, I will not be paying the requested $500 fee.” Doing this in writing provides you with undeniable proof that you stood your ground based on provincial law.
Step 3: Document Any Retaliation or Harassment
Some bad-faith landlords will become aggressive when a tenant knows their rights. 📱 If the landlord starts texting you repeatedly, threatening to evict you, or showing up at your door demanding cash, save all messages and keep a written log of every interaction. This behaviour constitutes “harassment and interference with reasonable enjoyment” under the RTA.
Step 4: Contact the RHEU for Immediate Intervention
If the landlord is threatening to lock you out over this unpaid illegal deposit, you do not have to wait months for a court date. Call the Ontario Rental Housing Enforcement Unit (RHEU). The RHEU is a government body that can call your landlord directly, remind them of the law, and threaten them with massive provincial fines if they do not back down.
Step 5: File a T2 (or T1) Application with the LTB
If the harassment continues, file a T2 Application about Tenant Rights with the Landlord and Tenant Board (LTB). You can ask the adjudicator to order the landlord to stop harassing you and to pay you financial compensation. If you already paid the illegal deposit because you were scared, you can file a T1 Application for a Rebate of Money to force the landlord to return your cash immediately.
How Much Does it Cost in Ontario?
Defending your rights against illegal fees is very affordable, and you rarely need a lawyer for standard LTB applications. 💵 Here are the costs involved:
| Action / Service | Estimated Cost (CAD) |
|---|---|
| Contacting the RHEU | Free. The government service is available to all Ontario tenants. |
| Filing a T1 or T2 Application | $48 CAD if filed online, or $53 CAD for a paper application. |
| Paralegal Representation (Optional) | $500 to $1,500+ CAD if you want professional help at your hearing. |
How Long Does the Process Take?
Refusing the illegal fee is instant. If the RHEU gets involved, they can usually contact the landlord within a few days to de-escalate the situation. However, if you are forced to file a T1 or T2 application to get your money back or seek harassment damages, waiting for a hearing date at the LTB currently takes 8 to 12 months due to severe provincial backlogs.
Frequently Asked Questions (FAQ)
Can I be evicted for refusing to pay the security deposit?
No. You can only be evicted for legal reasons set out in the RTA, such as not paying your actual rent, causing severe damage, or the landlord needing the unit for personal use. Refusing to pay an illegal fee is not a valid reason for eviction.
What if I signed a lease saying I agreed to a pet deposit?
In Ontario, a landlord cannot contract out of the RTA. Section 4 of the Act states that any clause in a lease that contradicts the law is totally void. Even if you signed it, the pet deposit clause means absolutely nothing and cannot be enforced.
How much can they legally charge for a key deposit?
A key deposit must be strictly limited to the actual, direct replacement cost of the keys or electronic fobs. For a standard metal key, this is usually $10 to $20. For an electronic condo fob, it might be $50 to $100. Charging $300 for a metal key is illegal.
What if I actually damage the apartment?
If you genuinely break a window or punch a hole in the wall, you are responsible for the repair costs. However, the landlord must either bill you directly or file an L2 application with the LTB to legally force you to pay for the damage. They cannot hold a pre-emptive deposit.
Leave a Reply