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:
Refundable
Equal to or less than the actual cost of replacement
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