Depending on where you rent, the allowable deposit will vary. In most jurisdictions, the landlord can ask for a security deposit, which is generally equal to the last month’s rent.
In Ontario, landlords can only ask for a rent deposit, and they cannot use this amount to cover any damage to the premises.
Whereas, in Alberta, a maximum of 1 month’s rent is allowable and in Quebec, the landlord cannot ask for a deposit; as you can see it does depend on the province you are renting in.
In most jurisdictions, each year when the rent increases, the landlord can ask the tenant to top up the amount of the deposit, however landlords rarely ask for it.
Across Canada, tenants are entitled to the return of their deposit with interest after they move out. If the deposit is used to pay for the last month’s rent, then no money will be refunded.
It is common for there to be an accumulated interest to the equal difference between the monthly rent at the beginning and end of the tenancy.
Once again, it does depend on the location, but the landlord can use some or all of the money to cover unpaid rent, cleaning or any necessary repairs to the property.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
