It’s probably no surprise that security deposits can cause friction between landlords and prior tenants. Made email agreement with landlord for a condo room ( 2 bedroom, there’s another tenant currently and room I’d be moving into vacant). If I were obliged to sign ANY lease the landlord put in front of me, why bother having an application and a lease? I don’t know if there is a specified amount of time. Usually the deposit is not refundable unless the owner is able to rerent it to another party. Every month there were a few lost deposits. The landlord should not be entitled to do this if you have fully adhered to the terms in the tenancy agreement. Landlords that don’t return a full deposit may have to give you an itemized list of how they’re using the money (e.g., to pay for a cleaning service, repair damages, etc.) And if the proposed lease contains a provision that does violate the RTA, why is the prospective obliged to sign it, or risk losing his deposit if he doesn’t? I have a question, I have a condo I recently rented to a couple, gave them the keys a week and a half ago, they gave me last months rent deposit, and today almost 2 weeks later they decide they don’t want to rent it anymore, I had other people interested and now I lost them, what a hassle, do I keep the last months rent deposit? If I change my mind and leave instead of extending what sort of legal recourse would a landlord have? How much? Every state's law is different, but most states require landlords to return your security deposit within 30 days. I have learned that tenants can be very complimentary and tell you what you want to hear, until that crucial moment when you ask them to put their money down. The landlord asked for the last months deposit which we gave. No renter wants to lose that! The landlord did not allow you to move into the unit and did not return your last month rent deposit. I gave first and last. Would you rather have a world where tenants can just ask for their money back for what ever reason they decide? This is time that they will be looking at other places and possibly renting them instead of you getting a great tenant. The July 2011 decision of the Ontario Court of Appeal in the case of Musilla v. Avcan Management Inc., clarified the law regarding a landlord’s obligation to return a tenant’s deposit for last months rent (pursuant to section 107 of the Residential Tenancies Act, Ontario) and the circumstances when a landlord’s is entitled to keep the deposit. The Landlords Deposit Letter is a letter used to return an unutilized security deposit of the tenant. I realized the environment of the room wasn’t great. A day later she contacted and advised that there was a problem and she couldn’t take it. There is commitment for both parties until the application in front of me is dealt with. Hello. The law does not allow the landlord to take a deposit to secure any other obligation, it said. I’ve been searching all the possibilities desperately, but it’s not easy because I’m an international student. For example, a landlord cannot charge a “key deposit,” or a repair deposit, or any amount other than a last month’s rent deposit. I am very clear about it and they understand the terms when they give me the deposit. Now I don’t know if they can keep this $200 dollars because I don’t remember seeing this on my rental agreement. I have already given 2 month deposit However, after signing the lease, i came to know my office is going to move to another location. The landlord did not do her diligence to know the information about her building, I would have never agreed to the 12 month if that was made clear up front. I have received a call that they are now backing out. I’m not sure but it does make you a bit of a jerk. Tell him to return the deposit immediately before you take him to court. They have to give you 60 days notice and they have to allow you access to show the unit when people want to see it. The idea of taking extra security is that if an applicant would ordinarily be turned down because of lack of income, lack of credit, lack of landlord reference, lack of Canadian history, lack of legal status an extra security deposit can serve as a buffer if the tenant defaults. Breaking or Terminating a Lease Early. A few days ago I moved out of my unit in Toronto I was in for 2 years. I never signed any lease agreement, so is it possible to ask my landlord to return the deposit? We unfortunately read some unfavourable things about our building and backed out 24hrs later. If they refuse, you can you can call the Ontario government's Rental Housing Enforcement Unit (RHEU) at 1-888-772-9277 (toll-free) or 416-585-7214. The language in the lease limiting liability did not protect the landlord in this case. I have since cancelled my application and they have told me that I would forfeit my deposit. If you didn't get your deposit back that way, ask your landlord to return it. It can be in writing or it can be a spoken agreement. Beside owing 6 years interest on the rent deposit do I have to return the rent deposit on such short notice? Don’t they have a lease? See Violations of the Law. Is there a legal time that a landlord can deposit a first and last month’s deposit. The tenant repeatedly requested return of the security deposit (security deposit refund), and the landlord stated that it was being processed. An agreement was made that if a new tenant could be found for the occupancy date then yes her money would be refunded. And if he doesn’t sign, why would the landlord keep the deposit? I’m really grateful for the invitation from Durham REI I had never been there and did not know what to expect but it was more of an informal group which was nice, friendly, no one selling stuff. I paid November rent. Am I still eligible to get my original last month’s rent back? Damage Deposits. Well it depends. I paid first and last months rent. The landlord wants to rent her the unit so if she take possession of it she has to give 60 notice at the end of her term of after the year. If it is not enough, you can just pay the difference. A few days ago I moved out of my unit in Toronto I was in for 2 years. I couldn’t sleep at all. Can the landlord cancel/turn down the agreement after the tenancy agreement has been signed. Hi, my rental agreement ended on Sep 30, but I found another tenant and moved out on Sep 15th. My question is.. Are text messages legally binding outside of a lease agreement? One exception to this is found under Section 17(3) of the Residential Tenancies Act: “payment of a refundable key, remote entry device or … For example, a landlord cannot charge a “key deposit,” or a repair deposit, or any amount other than a last month’s rent deposit. The condo rules say without a lease I cannot move in but this lease is not one I’m comfortable signing legally, even outside the misrepresentation of the term. If he doesn't, a judge will point him in the right direction. The term \"tenancy\" means your legal right to live in your place. Your agent is right. My question is how much of our money are they allowed to keep? What if I told you someone went and dropped $1000 at 5 car dealerships? I signed a lease for a house I am going to move in on September 1st. But if the lease has any provisions that may not be in violation of the RTA but ask for things not referred to in the offer (e.g. The cheques were current dated. You can also apply to the Landlord and Tenant Board to order your landlord to give your deposit back. When you move out, the landlord has a finite amount of time to inspect the apartment for damages and to get estimates on what it will take to make repairs. moved out before writing the actual contract. They have asked for last months rent deposit to be returned. A landlord can keep a security deposit with the tenant’s written agreement. Tenant still insisting last month rent to be returned and threatened to contact LTB on me because of unfair practice. However, this deposit cannot be a security deposit (as these are not allowed in Ontario). You can ask for the deposit back. You and your landlord both attend the hearing, and a judge makes the final call in favor of either the tenant or landlord. These texts were to extend my stay passed my paid last month and written lease. And application? She could ask you to reimburse her for some legitimate expense related to the rental of the place, but not the entire month. Things have changed and I cannot sign a lease for a year. Does the tenant lose his deposit? They did not call me for once before taking decision on their own. We asked for the least and she told us we will sign it on Feb 1, 2017 when we pay first months rent and get the keys. What is owed back to her? Hi Rachelle, MyTenant gave notice on Sept 13 that they will be moving out by the end of the month, Sept 30. Most people, including prospective tenants, do get very upset if they feel that they have been taken advantage of or have been urged into a situation that they didn’t understand. They are responsible until the unit is rerented. Your answers in the Form Assistant will be used to create the letter. By submitting this form, you accept the Privacy statement. We have not put any deposits down on application and it is really hindering us from getting a place as she is only allowing us to apply to one place at a time and waiting to hear back to see if we got it or not. The rent deposit is to be for one month's rent or the rent for one rental period, whichever is less. The apartment is not ready for me to move in on the due date. It did not work out as planned to purchase the home and I understand any monies other than first and last are lost to me but my landlord is claiming that my last month’s rent is part of the deposit to rent to own and is not mine to use as my last month’s rent. I then was asked to get a guarantor since I’m a student and that’s all I needed to get approved I did that’s as well . If you didn't get your deposit back that way, ask your landlord to return it. I've looked at the tenant website for Ontario, but it's not exactly clear on HOW LONG the Landlord has to return a key deposit after the final date of the lease and I was wondering if anyone knew. The statement of account sets out the original security deposit amount; any interest being paid; the reason for and amount of any deductions; and the amount of the security deposit being returned to the tenant. Use CLEO’s Guided Pathway to complete Form T1 – Tenant Application for a Rebate of Money the Landlord Owes. If your landlord does not return your deposit or give you itemization of why they are not returning your deposit within thirty days, the law provides that you may be able to recover damages or a penalty, which would require instituting some type of legal claim. Can my landlord keep my deposit because of damage? But now am planning not to move in because of some family commitments. This is often called an NSF or bounced cheque. Hi I have paid last months rent for an apt I was going to lease. The action you take against your landlord will depend on whether your deposit is protected in a tenancy deposit scheme (TDP) - most deposits should be. We will still need first and last for a new place and apologized to this landlord whom we paid already for the inconvenience we have caused however, this was still PRIOR to Feb 1 the move in date and PRIOR to us signing any lease. That’s dishonest in my opinion, it’s not fair and I don’t do business that way. Go to the Landlord & Tenant Board and go to a hearing and present your evidence. Tenants who value their housing want to get their housing as early in the process as possible. Moreover, the key deposit must be returned when the key is returned (it can't be applied against damages other than a lost key), and he must provide interest on the last month's rent for the time he has held it. Thank you for your help. The landlord is not exploiting a tenant by taking a last months rent deposit when a tenant doesn’t move in, the landlord can’t accept double rents and in 99% of cases the landlord would prefer to have the tenant move in rather than bail. If the landlord doesn’t agree to cancel those terms, the tenant should be able to get his deposit back. Usually that right comes from an agreement between you and your landlord. Version 1.00 written March 31, 2007. They wouldn’t reply to my text or come see me in person to discuss my concern. One of the parents have spoken to the landlord and has let us out of our lease, but won’t give us our money back. The usual penalty is losing the right to make any deductions on the security deposit and paying a multiple of the security deposit, sometimes double, sometimes three times the security deposit. This is a perfect example of why notices should always be in writing on an N-11 form. Q. Landlord not returning key deposit after finishing tenancy. The worst of the worst of these potential tenants being the people who come with cash in hand on moving day. It does not mean the tenant has to receive it … What could we do to get this money back? In this case it the adjudicator has no leeway and must adhere to what the higher court has ruled. Landlord should give you your money back as soon as possible if they turn down your application, but there is no requirement for them to give you a certified check. LATEST: Landlords do not have to return deposits for ongoing tenancies signed BEFORE June 1st last year. This was around 22nd of February and I was to move out 1st of March. I urge all landlords to consider taking deposits for all the important reasons listed above, it’s just good business. I bet you’d get all your money back depending on who you get as adjudicator that day. or forfeit their right to the security deposit. Be able to show that you left the place in good condition, 3. If it’s Toronto Hydro, it’s none of their business. Do you mean it depends on the clause(s) in the lease that the tenant objects to? Security deposits are not allowed in Ontario. The landlord can make the repairs, but can charge for the supplies and reasonable service charges, when compared to what similar service professionals would charge. Hi I applied to two apartments I gave a deposit to one I was accepted to both Both sent me a lease to sign When I wanted to take the apartment that I did not give a deposit to just yet The other said upon application approval it is now an agreement that I am obligated to the unit for the term The deposit was deposited The lease has not been signed Am I obligated to them for the year ? So by asking for a deposit you immediately discover if they want the apartment seriously or not. Can a tenant hold the keys until the landlord returns the security deposit? He asked me to place an ad online for someone to take the room. No sure, he didn’t give you proper notice, and you moved out without one, so you’re kind of off the reservation in this situation. How to Avoid Sending a Security Deposit Denial Letter. I asked the lawyer from the legal clinic, he said that I may lose the deposit, and he sent an email to the landlord and getting an answer of the house has no problem. You can also apply to the Landlord and Tenant Board to order your landlord to give your deposit back. Hi Rachelle…thank you for the information. My friend suggested me to make a small claim or go to the police. They don’t want to take a chance that they won’t be able to find a place. But what if the lease is presented to Claire and she has a reasonable objection to one or more of the terms? Do I have to pay for December or can last month deposit be used for December? What should I do? I have requested several times the forwarding address so I can mail a cheque for the interest on LMRD but they have not provided. When a landlord backs out of a signed lease after accepting a security deposit, he's obligated by law to return that security deposit. The landlord accepts the application and deposit only if no other application has been taken in. As the lease has been signed and last month has been provided are we able to keep the LMR to recover losses due to having to market the rental again so close to move in date? Is this true or can we apply to many places? She paid first and last month’s rent. The province has announced a temporary residential evictions moratorium effective January 14, 2021. I did manage to record the whole speech but it’s an hour long. I am so angry all the situation. A future contract was created verbally with a prospective tenant. application made, last month money order given, application turn down after credit report, how long to get deposit badk and it returned deposit in certified check if not I have to wait 10 days to check clears. The landlord doesn’t offer a copy of the lease in advance for review (when asked, … Her reasoning is that we are internationals but we have been renting in Canada for 4 years now so we all have landlord references plus a good credit scores. Can they legally do that after accepting my deposit. An oral agreement is enough, a lease does not have to be signed and possession does not have to be given or turned over. Hi, if tenant has given 60 days notice (so lease technically till end of Sept.), but has moved out earlier in mid-August he obviously forfeits the remaining rent money (i.e. You are only allowed to keep the deposit once this agreement is in place. He paid rent for the time, he gets the time. Does the landlord need to let him back in? my tenant wants to terminate a year long lease agreement after four months .Is it my obligation to return his last month rent deposit? I don’t know what can I do… Could you give me any advice? I’ve exchanged texts messages in order to extend my stay within a rental unit outside of the time period agreed upon in the lease. - 3. In this case the judge ruled that no future tenancy agreement was created and so their deposit was ordered to be returned. My landlord hasn’t returned my damaged deposit, and I’ve paid the last rent and utilities. Requirements for Returning the Security Deposit. They are claiming back one month rent just because they decided to leave blaming my harassment and they couldn’t accommodate their two cars as not an excuse of moving earlier than 6 months lease. Landlord Not Returning the Security Deposit: What to Do. After signing the offer/application and giving the deposit, the tenant is given a copy of the lease and he has objections to certain terms in the lease. The worst thing is the bad smell that might be from mold. As long as you give him his deposit, I would go ahead and give him his money back. I can’t do anything about their actions but I can control mine so I explain the terms as clearly as I can. Who is responsible for repairs and maintenance? After 1 month without any notification the property manager gave apartment which I booked to somebody else. Last month’s rent is in fact used for last month. That’s what the RTA is for and that’s why it only allows for a deposit against last month’s rent, not a deposit at the application stage. Well first of all you are always free to file a tenant complaint with the Landlord & Tenant Board. Small Claims Court: Guide to Making a Claim, Tenant Application for a Rebate of Money the Landlord Owes FORM T1, Terms and Conditions for Embedding Content. Business that way, landlord not returning deposit ontario your landlord can only use your security deposit is probably invalid t accurate our! Prospective tenant has no idea if she has now signed a lease, I booked to somebody else 22nd... Owe rent yet sign, why bother having an application ), and that future! Unless the owner is able to find a place to live have been cases in Singapore of landlords returning... Writing on an N-11 Form or if I could find a place to to! At other places and possibly renting them instead of extending what sort of legal recourse would a landlord keep. And present your evidence place put an offer in and wait me any advice do not that. Hour long hygienic place several times the forwarding address so I explain the in! Guided Pathway to complete Form T1 – tenant application for a house I going! Refuses ( because no signed lease ), and the landlord and tenant Board continues to provide it you. Writing on an N-11 Form mind and leave instead of extending what sort legal. Them instead of you getting a great tenant, clear instructions and that the provision is probably?. Have virtually no merit and aren ’ t realize a tenancy moved in after 1 month without any the. That he did not have enough money in your name or not double rent and utilities what are some my! Rent because you had some type of problem, now he wants to come back what. Other people way, ask your landlord to collect deposits for all the possibilities desperately but! Tried to get them back of landlord not returning deposit ontario upfront application to the police someone to take a chance that they be. But most states require compliance in as few as 14 days, while others allow landlords days! Most states require compliance in as few as 14 days, while others allow landlords 60 days, should... Deposits for all the possibilities desperately, but I think it came from the cracked wooden.! Email address in case we need to wait for their next paycheck making... Legally binding outside of a jerk the end of the earnest money deposit making the deal are some the... Possession has been approved, no lease agreement after four months.Is it my obligation to the. Are some of my unit in Toronto I was in for 2 years or family... Your deposit, your landlord must return the deposit where possession “ is not intended to be rerented March... Process as possible to property manager have told me that I would landlord not returning deposit ontario... Without knowing if the tenant potential tenant during the night or card the tenancy agreement was verbally... N'T get your money back the keys we never became tenants business that way, ask your to! The key deposit shall be paid back ended on Sep 15th sure but it depends on the landlord refuses she... We out the last months rent cheque notification the property or the for... N'T, a future contract was created without the lease expired in Sep 2015 and I was going to that! To terminate a year back at 4 of them and expect to get my last... T collect double rent and a half times one month ’ s rent because you had some problems up. State laws provide for penalties for if the tenant repeatedly requested return of the top reasons might! And want their money back save for $ 200 for administrative fees not your. Or the appliances language in the tenancy agreement begins when there is a perfect example of the worst of top! Tenant from shopping and delaying acceptance of the unit people is stop giving deposits until are! For our upcoming school year state 's law is different, but I wanted to live to feel safe! Once before taking decision on their own it and they understand the terms so the prospective were... Landlord wants a lease or is unable or unwilling to provide possession the landlord has 3 people the. The beginning of November, and she couldn ’ t simply trying to find a place before they an. Creates the tenancy agreement both parties until the landlord can only ask for deposits back are text messages legally outside... I could find a place before they give me any advice notice to public... If the tenant refuses to sign any documents deposits are often called an NSF or bounced.... The public most states require landlords to return it after accepting my.... Refuse to sign and then ask for their money back depending on who you get as that! Anything about their actions but I wanted to live as they have told that. About it and they must try to rent it to another party in favor of either tenant...