Rental Deposits Ontario: 3 Helpful Facts You Need To Know
As a local Toronto realtor, I’m often asked a question by tenants and landlords regarding rental deposits. Namely, do landlords have to pay rent deposit interest to tenants for condo rentals in Toronto?
Well you may be surprised to learn that Ontario landlords are indeed required to pay their condo tenants annual interest on their last month rent deposit. Since it’s not technically used until the last month of tenancy, the landlord is required to pay the tenant interest on that deposit.
Rental Deposits Ontario: Frequency of Payment
And Ontario landlords are supposed to pay interest to tenants every 12 months. If they don’t, the interest owing to the tenant is actually compounded each year. Interest is payable on the total rent amount being held by the landlord, including any subsequent increases in rent.
If tenants want to collect the interest owing, they may be able to subtract it from their rent if the landlord consents.
Rental Deposits Ontario: Landlord Refusal
If a landlord refuses to pay interest to a tenant, the tenant can apply to the Landlord and Tenant Board in Ontario for an order requiring the landlord to pay, or for an abatement of rent equal to the amount of interest owing.
Rent Wisely Friends.