Ontario allows two deposits. Everything else is usually illegal.
A landlord may collect last month’s rent (one rental period) and a refundable key deposit limited to actual replacement cost. Damage deposits, pet deposits, cleaning fees, and “admin fees” dressed up as deposits are not lawful under the Residential Tenancies Act.
Guideline at a glance
| Year the increase takes effect | Published guideline | On $2,000 rent |
|---|---|---|
| 2026 | 2.1% | +$42.00 |
| 2027 | 1.9% | +$38.00 |
Most rent-controlled units: one increase per 12 months, at least 90 days’ written notice on the proper form (usually N1). Above-guideline increases need an LTB order. Units first occupied for residential use after 15 November 2018 are generally exempt from the guideline; vacancy between tenants is also unregulated. Confirm your unit before you accept a number.
Official page: ontario.ca/page/residential-rent-increases.
Last-month deposit interest
The last-month rent deposit is credited to the last rental period. Landlords must pay interest on it annually at the guideline rate (or apply that interest to a lawful increase of the deposit when rent goes up). It is not a damage fund.