RSS

Are Key Deposits Legal in Ontario?

When renting in Ontario, it's essential to know your rights around deposits. While some types of deposits are commonly requested (like key deposits), Ontario law strictly limits what landlords can legally collect. Here's a clear breakdown of how key deposits work—and what’s lawful.

1. Legal Status of Key Deposits in Ontario

  • Yes, key deposits are legal—but only under strict conditions. They must be refundable and not exceed the actual cost to replace the keys or fobs.

  • These rules are backed by the Residential Tenancies Act, 2006 and Ontario regulations.

  • If locks are changed by the landlord, tenants should not be charged for new keys, though landlords may keep the original deposit as credit.

2. Maximum Key Deposit Allowed

  • The maximum key deposit is strictly the actual or expected cost of replacing the key, card, or fob.

  • Landlords are required to provide receipts or evidence of the replacement cost if requested.

3. Are “Key Money” or Other Extra Deposits Legal?

  • No, "key money" or any deposit beyond covering key replacement costs is not legal in Ontario.

  • Deposits for damages, pets, cleaning, or utilities are explicitly illegal.

4. Maximum "Cash for Keys"

  • The only “cash for keys” amount permitted is that which equals the key replacement cost—nothing more. Any variation or inflation of that amount is not permitted.

5. Purpose of a Key Deposit

  • It acts as security to ensure tenants return all keys and access devices at the end of tenancy.

  • If keys are not returned, the deposit can be used to cover the actual replacement cost only.

  • The deposit must be returned promptly—typically within a few business days (often 5–10 days)—once keys are returned.

Final Summary

Key deposits in Ontario are allowed—but only when they are:

  1. Refundable

  2. Equal to or less than the actual cost of replacement

  3. Promptly refunded once all keys/devices are returned

Any extra deposits—for damage, pets, cleaning, or utilities—are illegal. If your landlord refuses to return your key deposit or overcharges, you can apply to the Landlord and Tenant Board (Form T1) for resolution.

Frequently Asked Questions

1. What is the maximum key deposit in Ontario?
It must not exceed the actual replacement cost of keys, fobs, or remotes—and proof or receipts may be requested.

2. Is key money legal in Ontario?
No—any extra "key money" beyond replacement cost is not legal. Only key deposit is allowed, solely for replacing keys.

3. What is the maximum "cash for keys"?
Same as key deposit—it must align with replacement cost only, not inflated for any other purpose.

4. What is the point of a key deposit?
It ensures tenants return all keys/access devices and covers legitimate replacement costs if they don’t. Once keys are returned, the deposit must be promptly refunded


Read

Who Pays Condo Fees: Me or My Tenants?

When renting out a condo, one of the most common questions landlords (and some tenants!) ask is: who’s responsible for condo fees? Although this might appear straightforward, it’s a nuanced topic—especially here in Ontario. Let's clarify who pays what, how it impacts your taxes, and whether these fees are truly "worth it.

1. Condo Fees Are the Landlord’s Responsibility by Default

  • By default, condo fees are tied to ownership—not tenancy. That means the unit owner (landlord) is responsible for paying these fees directly to the condo corporation. 

  • That said, landlords typically account for these fees when setting rent—so tenants often indirectly cover them through higher rent.

  • In rare cases, the lease may require tenants to pay condo fees directly—but this must be explicitly stated in the agreement. It’s uncommon and often not advisable for landlords. 

2. What Condo Fees Actually Cover

  • Condo fees fund common-element upkeep, operations, reserve funds, and services such as lobby maintenance, elevators, gyms, and cleaning. 

  • Importantly, condo fees do not include property taxes, which are billed separately by the municipality. 

3. Rent vs. Condo Fees: How They’re Handled

  • In most leases, you’ll see an “all-in rent” price rather than a line item for condo fees. That’s because landlords bake fees into the rent to ensure they remain covered. 

  • Tenants rarely pay condo fees directly—unless specified by the lease. Even then, as an Ontario renter cautioned:

    “Depends on the landlord, but I’d say it’s atypical to have the renter pay the condo fees. Condo fees should just result in up-charged rent.”

4. Tax Considerations: Condo Fees as Deductions

  • When you live in the condo as your principal residence, condo fees are not tax deductible—they’re considered a personal expense. 

  • However, if you rent out the condo, you can deduct condo fees as allowable rental expenses. You’re allowed to deduct your share of fees related to maintenance, repairs, and common property upkeep. 

  • The CRA also categorizes this under “rental expenses,” particularly maintenance or management/admin fees. 

5. Are Condo Fees Worth It?

  • While they add cost, condo fees often include valuable services: building maintenance, amenities, and contributions to emergency reserve funds. These perks can enhance tenant appeal and justify higher rent. 

  • But it’s important to weigh the total cost—factoring in condo fees, taxes, insurance, and utilities—when evaluating property profitability.

Final Summary

In Ontario, condo fees are primarily the landlord’s obligation—but they’re often recouped through rent. Tenants usually don’t pay them separately unless the lease explicitly states otherwise. For tax purposes, owners renting out the condo can deduct condo fees as rental expenses, while owner-occupied units offer no such tax benefit. Ultimately, condo fees often reflect amenities and protections, and whether they’re “worth it” depends on your rental strategy and financial goals.

Frequently Asked Questions

1. Does rent include condo fees?
Typically, yes—rent often includes condo fees indirectly. Landlords factor fees into the rent, so tenants usually don’t pay them separately, unless the lease explicitly assigns responsibility. 

2. Do renters pay condo fees in Ontario?
Not usually. The landlord or owner pays them. Rent may be adjusted to offset fees, but tenants paying them directly is rare, and must be clearly outlined in the lease. 

3. Can you claim condo fees on your income tax in Ontario?

  • Owner-occupied: No—you can’t deduct condo fees as a personal expense. 

  • Rental property: Yes—condo fees related to maintenance and common expenses are deductible as rental expenses. 

4. Are condo fees worth it?
They cover valuable amenities—maintenance, management, and reserve funding—that can make your property attractive and better maintained. Whether they’re “worth it” depends on balancing cost versus benefit in rental income and property upkeep.


Read

What to Know If You Rent to a Family Member

Renting to a family member can feel convenient—but it can also get tricky when boundaries blur. Understanding both your legal and emotional responsibilities upfront is key. Here’s what to consider before a loved one moves in, especially in Ontario.

1. Understand Your Legal Status

  • Whether or not you have a written lease, a tenancy may be established once payment is exchanged and the occupant moves in.

  • If shared spaces (like kitchen or bathroom) are used jointly, Ontario's Residential Tenancies Act (RTA) may not apply—meaning eviction may be simpler.

    • “If they share a kitchen and bathroom with you… your tenancy is probably not governed by the Residential Tenancies Act.”

2. When the RTA Applies

  • If the family member uses a standalone unit—even informally—Ontario courts may treat them as a tenant under RTA.

  • To evict legally, you must:

    • Serve the proper eviction notice (e.g., N-series)

    • Apply to the Landlord and Tenant Board (LTB)

    • Attend a hearing

    • Secure and enforce an eviction order via the Sheriff—you cannot lock someone out yourself

3. Communication and Mediation First

  • Always start with a respectful conversation. If this doesn’t help, move to a written notice to keep things formal and clear.

  • Voluntary mediation via LTB is an option before formal eviction proceedings begin.

4. Family Matters: No Lease ≠ No Rights

  • Without a formal lease, the situation is still sensitive. Family members occupying the space may gain tenant rights if they’re treated as tenants.

  • If eviction becomes necessary, courts—and LTB—may still require formal processes if RTA applies.

5. If They Live With You: “Tenant at Will”

  • Adult children or close family living with you are often considered "tenants at will"—neither formal nor protected by RTA.

  • You can begin eviction via a demand letter or notice to vacate—consult a lawyer for proper steps. In refusal cases, police or trespassing charges may follow.

Final Summary

Renting to family in Ontario navigates a gray zone. If shared spaces are involved, RTA may not apply—simplifying eviction. But if they occupy a separate space and you accept rent or other consideration, the RTA likely governs the arrangement. Always start with open communication and mediation. If needed, proceed with proper legal notice, LTB application, and enforcement by the Sheriff. And when in doubt—especially with emotionally sensitive situations—seek legal advice early.

Frequently Asked Questions

1. How do I evict a family member with no lease in Ontario?

  • If shared living space applies, RTA may not cover the situation. You’ll likely just need to give reasonable notice and, if needed, escalate—potentially even involving police if they won’t leave.

  • If RTA does apply (separate space, tenancy established), deliver the proper eviction notice, apply to the LTB, and follow through with LTB proceedings and Sheriff enforcement.

2. Can you kick a tenant out for family?

  • Only if the family member qualifies under RTA—such as a spouse, child, parent, or caregiver—and you follow the N12 process. This includes 60 days’ notice, proper form, compensation (usually one month’s rent), and LTB hearing if contested.

  • Extended relatives (e.g. nephew) don’t qualify.

3. How to evict someone renting a room in your house in Ontario?

  • If they share your kitchen/bathroom, the RTA likely doesn’t apply. Just give reasonable notice to vacate—no formal eviction process often needed.

  • If they’re treated like a tenant (separate living area, paying rent), follow legal process: notice, LTB application, hearing, and Sheriff-enforced eviction


Read

Everything Landlords Need to Know About Ontario Tenant Laws

Navigating Ontario’s tenant laws can feel like a maze—but it's vital for landlords to stay informed to maintain compliance and foster positive landlord-tenant relationships. From understanding tenant rights and entry rules to proper eviction procedures, this guide breaks down the essentials for landlords in Ontario.

1. Tenant Rights in Ontario

  • Non-discrimination: Landlords must not refuse tenancy based on race, religion, family status, disability, or other protected grounds under the Human Rights Code.

  • Habitable Living Conditions: The rental must be safe and in good repair, regardless of whether the tenant was aware of issues at move-in. 

  • Privacy and Quiet Enjoyment: Tenants are entitled to peaceful living and protection from harassment—including excessive entry or unauthorized surveillance. 

2. Are Overnight Guest Restrictions Allowed?

No. Landlords cannot prohibit overnight guests arbitrarily, as doing so may violate tenants' rights to reasonable enjoyment of their home. Such restrictions could be seen as unreasonable interference. 

3. Grounds for Eviction in Ontario

Landlords must follow legal grounds defined by the RTA to evict, including:

  • Non-payment of rent

  • Damage to the property

  • Illegal activities or representations

  • Too many occupants or disturbing other tenants

  • Landlord or family needing the property (using Form N12 with 60-day notice) 

4. Notice Required for Ending Tenancy

  • Month-to-month or longer leases: At least 60 days’ written notice, ending on last day of rental term. 

  • Weekly or daily tenancies: 28 days’ notice required. 

5. How Long Do Evictions Typically Take?

Evicting a tenant legally can take time—typically 85–138 days, and up to around 168 days if enforcement by the sheriff is needed. 

6. Landlord & Tenant Board (LTB) Basics

  • The LTB is Ontario’s adjudicative body for landlord-tenant disputes, including eviction applications. A landlord cannot evict without an LTB hearing and order. 

  • The Residential Tenancies Act (RTA) governs all landlord-tenant interactions, including eviction reasons, rent rules, and tribunal procedures. 

Final Summary

As a landlord in Ontario, it's crucial to respect tenant rights—ensuring safety, privacy, and non-discriminatory practices—while adhering closely to legal guidelines for eviction, notice periods, and tribunal agreements. Understanding the RTA and LTB processes will help protect your investment, prevent disputes, and support professional, lawful landlord practices.

Frequently Asked Questions

Q: What are the tenant's rights in Ontario?
Tenants are protected under the RTA and Human Rights Code. They have the right to a non-discriminatory, safe and well-maintained home, peaceful enjoyment, and protection from harassment and privacy violations by landlords. 

Q: Can a landlord say no overnight guests in Ontario?
No—landlords cannot forbid overnight guests if it unreasonably interferes with the tenant's reasonable enjoyment of the property. Such restrictions may be against the law. 

Q: On what grounds can a landlord evict a tenant in Ontario?
Legal grounds include non-payment of rent, property damage, illegal activity or misrepresentation, overcrowding or disturbances, or personal landlord use (via Form N12 with 60 days’ notice).

Q: How much notice does a landlord have to give a tenant in Ontario?

  • 60 days for monthly or longer tenancies (ending on last day of rental period).

  • 28 days for weekly or daily tenancies.

Q: How long does it take to evict a tenant in Ontario?
Eviction typically takes 85–138 days from notice to order, and up to around 168 days if sheriff enforcement is required.


Read
This website may only be used by consumers that have a bona fide interest in the purchase, sale, or lease of real estate of the type being offered via the website. The data relating to real estate on this website comes in part from the MLS® Reciprocity program of the PropTx MLS®. The data is deemed reliable but is not guaranteed to be accurate.