Tenant Survival Manual

Chapters

Introduction

The Residential Tenancies Act

Landlord and Tenant Board

Are You Covered by the Law?

Private Market Housing

Social Housing

Before You  Move In

Tenancy Agreements

Discrimination

Information Package

Last Month's Rent

Key Deposit

Illegal Charges

Rent

Rent Increases

Above Guideline Rent Increases

Rent Reductions

Automatic Rent Reductions

Rent Freezes

Trouble Paying Your Rent?

Rent in Social Housing

Repairs and Maintenance

How to Get Repairs Done

Working Together

Privacy

Locks and Keys

Harassment

Ending a Tenancy

Subletting

Assigning

Evictions

Eviction Procedure

Reasons for Eviction

Conversion, Demolition or Renovation

How To File an Application

Hearings

About the FMTA

Last Month’s Rent Deposit

When you move in, the property manager can ask you to pay your last month’s rent in advance. This is called your Last Month’s Rent deposit, LMR, or security deposit.

Your Last Month’s Rent deposit cannot be more than one month’s rent for a monthly tenancy, or one week’s rent for a weekly tenancy.

The last month’s rent deposit can only be used as a rent payment for your last month or week of rent. It cannot be used for cleaning or to repair damages. Once you move in, a property owner cannot make you pay a last month’s rent deposit. It must be collected before you move in.

Once a year, you are entitled to interest on your Last Month’s Rent deposit. The amount of interest is equal to the amount your rent can increase, which changes every year. If you have received a rent increase, a property owner may require that you increase your Last Month’s Rent deposit so that it is equal to your current rent. A property owner may use the amount of interest gained on your Last Month’s Rent deposit to “top up” your deposit. This means that when you move out, your last month's rent deposit will automatically be equal to your monthly rent and you will not be required to pay any additional money in your last month.

If your rent did not increase and the property owner has not already paid you interest on your Last Month’s Rent deposit, you are entitled to automatically deduct the interest amount from your rent on or after your anniversary date. See Section 106 of the RTA for more information about Last Month’s Rent deposits.