Law Talk: Can My Landlord Ask For Deposits and Other Fees?
The Residential Tenancies Act covers
most agreements between residential landlords
and tenants. When you are deciding on
a place to live, you should be aware that
landlords sometimes ask for more than just
rent. This article will help you figure out
which requests are legal, and which ones are
not.
Before You Begin Your Tenancy
You can negotiate the terms of your rent with your landlord. You and your landlord can agree to any length of a rental term. Your landlord cannot force you to give postdated cheques or any pre-authorized way of taking money from your bank account or credit card, but a tenant can agree to provide these.
If your landlord asks for a rent deposit, the most money that can be required is for one rental period. If you have agreed to a monthly tenancy or longer, the maximum is one month's rent. If you have agreed to a weekby- week tenancy, the maximum is one week's rent. This amount must be applied to your last rental period, and cannot be kept for any other reason such as cleaning or damage fees. However, if your rent increases (such as a yearly increase with proper notice), your landlord can request that you “top up” this deposit to the new rent amount. The request for a rent deposit must be at or before the time you form the rental agreement, and cannot be requested after your tenancy starts.
Other Deposits and Charges
Your landlord may also ask for a deposit for the cost of replacing your keys or building access card, but this cannot be more than the actual cost of replacement. This deposit must be given back to you when you return the keys. Your landlord may also charge you a fee if you write a cheque and there is not enough money in your account. This is often called a NSF Fee or a bounced cheque.
Most other fees and charges are illegal, even if they are refundable. Common illegal fees, which landlords sometimes try to charge, are a deposit to “hold” a unit for your tenancy, a damage deposit, a cleaning deposit, or a finder's fee. If you have paid an illegal fee, you have one year to apply to the Landlord and Tenant Board for your money back or you may lose your right to get the money back.
Interest on Deposits
If you have paid a rent deposit, your landlord owes you interest annually on the amount of the rent deposit. Many landlords forget this, and you should make a request in writing to receive your interest. If your landlord does not give you the interest, you can deduct the amount of interest from your next rent cheque, but you should include a note explaining why you have made this deduction.
If your landlord gives you the proper notice for annual rent increases, the interest that is owed to you may be equal to the additional amount of rent you are charged. If this is the case, the landlord may add this interest to your deposit, so that the deposit stays at the value of your final month's rent.
Receipts
You have the right to ask for a receipt for every rent payment, deposit, charge, and any other payment made to your landlord. Your landlord must give you the receipt free of charge. You may make this request anytime during your tenancy, or within a year after your tenancy ends.
For more information on tenant rights and rental housing laws, and to find application forms to enforce your rights, please visit the Landlord and Tenant Board website at ltb.gov.on.ca or call them at 1-888-332- 3234.
This column is brought to you by Community Law School (Sarnia-Lambton) Inc., and Community Legal Services and Pro Bono Students Canada at Western University. It provides legal information only. The information is accurate as of the date of publication. Laws change frequently so we caution readers from relying on this information if some time has passed since publication. If you need specific legal advice please contact a lawyer, your community legal clinic, Justice Net at 1-866-919-3219 or the Law Society Referral Service at 1- 800-268-8326.
Editorial opinions or comments expressed in this online edition of Interrobang newspaper reflect the views of the writer and are not those of the Interrobang or the Fanshawe Student Union. The Interrobang is published weekly by the Fanshawe Student Union at 1001 Fanshawe College Blvd., P.O. Box 7005, London, Ontario, N5Y 5R6 and distributed through the Fanshawe College community. Letters to the editor are welcome. All letters are subject to editing and should be emailed. All letters must be accompanied by contact information. Letters can also be submitted online by clicking here.
Before You Begin Your Tenancy
You can negotiate the terms of your rent with your landlord. You and your landlord can agree to any length of a rental term. Your landlord cannot force you to give postdated cheques or any pre-authorized way of taking money from your bank account or credit card, but a tenant can agree to provide these.
If your landlord asks for a rent deposit, the most money that can be required is for one rental period. If you have agreed to a monthly tenancy or longer, the maximum is one month's rent. If you have agreed to a weekby- week tenancy, the maximum is one week's rent. This amount must be applied to your last rental period, and cannot be kept for any other reason such as cleaning or damage fees. However, if your rent increases (such as a yearly increase with proper notice), your landlord can request that you “top up” this deposit to the new rent amount. The request for a rent deposit must be at or before the time you form the rental agreement, and cannot be requested after your tenancy starts.
Other Deposits and Charges
Your landlord may also ask for a deposit for the cost of replacing your keys or building access card, but this cannot be more than the actual cost of replacement. This deposit must be given back to you when you return the keys. Your landlord may also charge you a fee if you write a cheque and there is not enough money in your account. This is often called a NSF Fee or a bounced cheque.
Most other fees and charges are illegal, even if they are refundable. Common illegal fees, which landlords sometimes try to charge, are a deposit to “hold” a unit for your tenancy, a damage deposit, a cleaning deposit, or a finder's fee. If you have paid an illegal fee, you have one year to apply to the Landlord and Tenant Board for your money back or you may lose your right to get the money back.
Interest on Deposits
If you have paid a rent deposit, your landlord owes you interest annually on the amount of the rent deposit. Many landlords forget this, and you should make a request in writing to receive your interest. If your landlord does not give you the interest, you can deduct the amount of interest from your next rent cheque, but you should include a note explaining why you have made this deduction.
If your landlord gives you the proper notice for annual rent increases, the interest that is owed to you may be equal to the additional amount of rent you are charged. If this is the case, the landlord may add this interest to your deposit, so that the deposit stays at the value of your final month's rent.
Receipts
You have the right to ask for a receipt for every rent payment, deposit, charge, and any other payment made to your landlord. Your landlord must give you the receipt free of charge. You may make this request anytime during your tenancy, or within a year after your tenancy ends.
For more information on tenant rights and rental housing laws, and to find application forms to enforce your rights, please visit the Landlord and Tenant Board website at ltb.gov.on.ca or call them at 1-888-332- 3234.
This column is brought to you by Community Law School (Sarnia-Lambton) Inc., and Community Legal Services and Pro Bono Students Canada at Western University. It provides legal information only. The information is accurate as of the date of publication. Laws change frequently so we caution readers from relying on this information if some time has passed since publication. If you need specific legal advice please contact a lawyer, your community legal clinic, Justice Net at 1-866-919-3219 or the Law Society Referral Service at 1- 800-268-8326.
Editorial opinions or comments expressed in this online edition of Interrobang newspaper reflect the views of the writer and are not those of the Interrobang or the Fanshawe Student Union. The Interrobang is published weekly by the Fanshawe Student Union at 1001 Fanshawe College Blvd., P.O. Box 7005, London, Ontario, N5Y 5R6 and distributed through the Fanshawe College community. Letters to the editor are welcome. All letters are subject to editing and should be emailed. All letters must be accompanied by contact information. Letters can also be submitted online by clicking here.
