Is Damage Deposit Legal in Ontario
Let`s say you charge your Ontario tenant $2,000 a month in rent, you can charge a rent deposit of $2,000. However, if you decide to increase the rent by $100 after a few months, the rent deposit is $2,100. Please keep these facts in mind the next time you decide to apply for a deposit. A key deposit is a sum of money that a tenant gives to a landlord until they safely return the keys at the end of the rental period. The deposit can include the unit key as well as the main entrance to the building and other mechanisms such as garage remotes. Keep in mind that this is still a legal gray area. If you decide to accept a deposit that goes beyond the first and last month`s rent, proceed very carefully and make sure you receive in writing that this payment was offered by the tenant and not required by the landlord. If you have a weekly contract, the rent deposit you receive must not exceed one week`s rent. If you enter into a monthly contract, you should not charge a deposit that exceeds the rent of one month. Total amount of corvers: $90,000 (rent for 1 year) + security deposit of $7,500 = $97,500 If there is no written lease, the landlord must provide the tenant with their legal name and address within 21 days of the start of the lease. Alison Corvers, a British citizen in Canada on a visitor visa, applied in the spring of 2013 to rent a house in Mississauga from Tanveer Bumba for $7,500 per month. Bumbia initially rejected his application because the conditions of her visa did not allow Ms.
Corvers to work legally in Canada, and he feared that she would not be able to bear the payments. Ontario landlords have the legal right to require a last-month rent deposit before or as part of their lease. However, as already mentioned, this amount can only be used for the purposes indicated. If you pay a security deposit and later decide not to continue with the rental agreement, this amount must be refunded to you. At the end of the day, my husband and I found a solution with our landlord that neither party liked, but that was better than the all-or-nothing alternative. The owner agreed to return half of our deposit. However, after talking with several professionals and reading more information about tenants` rights, it is clear that if we had filed an application in Small Claims Court, we would have recovered the entire deposit. Having the knowledge and background to support our arguments would probably have been enough to appease the owner. Unfortunately, many Canadians are learning the hard way that they have more rights than they realize when it comes to renting property and protecting themselves as tenants.
There are only two types of security deposit that your landlord is allowed to charge when renting a new apartment: With these questions and answers in mind, you should have a better understanding of Ontario`s laws regarding rent deposits. If you have any further questions, AMR Property Management can help you answer them. We are a full-service property management company with over 20 years of experience. Contact us today! Ontario has specific laws and regulations that guide landlords in collecting and maintaining a tenant`s rent guarantee. In this article, we`ll cover the basics of these laws by answering some of the most frequently asked questions about rent deposits. In any case, tenants should always speak to their landlord in advance if they need to break a lease. Sometimes things happen that are out of our control and the best way to avoid conflict and the possible loss of a rent deposit is to be honest about your situation and work towards an amicable solution. Ontario landlords are not allowed to charge a deposit for pets. It is illegal in Ontario. Unlike a security deposit, you can`t use the rent deposit to pay for things like maintaining the property or repairing damage before or after a tenant moves.
As a landlord in Ontario, you can only use the rent deposit as a rent payment for the last month. It depends on the payment plan you have with your tenant. No. A landlord cannot require a security deposit to pay for damage to the unit. In addition, a landlord cannot use last month`s rent deposit to cover damage to the unit. The deposit can only be used for the rent of the last month before the end of the rental. Ontario allows landlords to charge for the key deposit. However, this amount must not be more than what it would cost to replace the keys.
The deposit must be returned to the tenant at the end of the rental period. Yes, you can increase the rent security deposit if the amount you charge for rent also increases. You simply need to make sure that your rent security deposit continues to match the amount of rent charged per month or per week. Most landlords require new tenants to leave a security deposit before moving in. If a landlord asks a tenant to pay last month`s rent, it is a rent deposit, not a deposit. Deposits are not permitted in Ontario. In general, landlords are not allowed to charge tenants any additional fees or charges on rent. For example, a landlord can`t charge a “key security deposit” or repair deposit or any amount other than last month`s rent deposit. An exception is ยง 17 para. 3 The Residential Tenancies Act: “Payment for a refundable key, remote access device or card deposit” is permitted as long as it does not exceed the anticipated direct replacement costs. Your landlord pays the interest by giving it to you or adding it to your security deposit.
If not, you can deduct it from your next rent payment or ask the landlord and tenants` committee to pay it. A refundable key deposit under The Residential Tenancies Act must be appropriate. The landlords and tenants` committee really wants to see this at the actual material cost of copying the keys. For example, your home has a standard latch, the typical cost of a key is less than $5, a $200 deposit would not be considered reasonable. The landlord must pay the tenant interest on the rent deposit every 12 months. The interest percentage corresponds to the rent increase policy that applies when interest payments are due. This policy is established annually by the Ministry of Housing. Instead of paying interest to the tenant, the landlord can reduce the amount required to update the rent deposit (to equal the current rent) by the amount of interest owing. Ontario`s rent laws outline how landlords should collect and manage a tenant`s rent deposit.