Are Condo Rent Deposits Legal In Toronto? Helpful Advice for Tenants.
As a local Toronto real estate agent, I’m often asked this key question by tenants and landlords alike. According to the Residential Tenancies Act, condo rent deposits are legal in Toronto rentals markets but it depends on what type of deposit it is. Most Toronto landlords require that condo rental tenants initially pay first and last months rent via deposit before they move in, which is completely legal in Ontario.
However, this is a rent deposit NOT a security deposit which is NOT allowed in Ontario.
Condo Rent Deposits: Landlord Rules
Landlords are not allowed to charge tenants additional fees or charges above the rent. For instance, landlords can’t use condo rent deposits to pay for any damage to the rental unit and they can’t demand additional damage deposits either.
Any amount required to pay for damages caused by the tenant has to be requested separately from the rent deposit. The only exception to additional condo rent deposits that can be requested is that a landlord can ask for a refundable key or fob deposit. But the amount cannot be greater than the expected cost to replace it. In most cases that’s around $50 to $100 dollars per unit key or building and garage fob.
Rent wisely friends.