Last Month's Rent Deposit

LMR

The one legal rent deposit in Ontario, applied to the final month.

In Ontario, a landlord may collect a rent deposit equal to at most one month's rent (or one rental period), and it must be applied to the tenant's last month of the tenancy. It is not a damage deposit: Ontario does not permit a separate damage or security deposit. The landlord also owes the tenant interest on the deposit each year, at the guideline rate. Charging an illegal deposit is a common landlord mistake.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.