Lease Deposit Question

[Gavin]

I'm hoping that someone can clarify the Residential Tenancies Act's position on lease deposits for me, please.

On this page it clearly says that,

Can a landlord charge a person a deposit or a fee to rent a unit?

Yes, a landlord can collect a rent deposit if it is requested on or before the day that the landlord and tenant enter into the tenancy agreement. The rent deposit cannot be more than one month's rent or the rent for one rental period, whichever is less. For example, if rent payments are made weekly, the deposit cannot be more than one week’s rent; if rent payments are made monthly or bi-monthly, the deposit cannot be more than one month’s rent.

The rent deposit must be used for the rent for the last month before the tenancy ends. It cannot be used for anything else, such as to pay for damages.

So, does that mean that on lease agreement, a landlord can only request a deposit of one month's rent (for the last month of the agreement)...and then rent for the first month of the agreement is due on the first of the first month of the agreement?

Or can they ask for a deposit of one month's rent (for the last month of the agreement)...plus rent for the first month of the agreement up front (due today for a lease starting on December 1, for example)?

 

[cdr108]

as it relates to residential leases ... 1st + last ... but can't ask for a separate security deposit.

commercial leases are completely different

 

[Gavin]

as it relates to residential leases ... 1st + last ... but can't ask for a separate security deposit.

commercial leases are completely different

So legally, you can ask the tenant to provide their first month's rent up front -- in this case six weeks in advance -- in addition to their last month's rent deposit? They can't opt to provide you with last month's rent as a deposit and a post-dated cheque for the first month's rent that's dated for the first of the first month of the lease?

And yes, it's residential.

 

[steve_toronto]

as it relates to residential leases ... 1st + last ... but can't ask for a separate security deposit.

commercial leases are completely different

Then how does a landlord recover damage repair cost if needed ?

 

[Gavin]

Then how does a landlord recover damage repair cost if needed ?

From the same page I linked to above:

Can the landlord charge the tenant a damage deposit?

No. A landlord cannot collect a damage deposit that they would use if there is damage done to the unit. Also, a landlord cannot use the last month’s rent deposit to cover damages in the unit.

If the landlord finds that a tenant has damaged the unit or caused damage to the building, the landlord can give the tenant a notice and/or ask them to pay for the damages. If they do not, the landlord can apply to have the Board determine if there are damages and what should be done about them. For more information about the remedies available to a landlord if a tenant causes damage, see the Board’s brochure on Maintenance & Repairs.

 

[simuls]

Then how does a landlord recover damage repair cost if needed ?

Landlords routinely abused the security deposit provision and so it was taken away from them. It is pretty unique to Ontario I believe.