Can My Landlord Keep My Deposit or Charge for Cleaning in Ontario?

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Ontario landlords can only take last month’s rent, must pay interest on it, and cannot deduct cleaning or damage. Here is what the law allows.

This is for Ontario tenants moving out of a condo or house who want to know if the landlord can hold back money or bill them for cleaning, and for landlords who want to stay on the right side of the rules. You will get the actual sections of the Residential Tenancies Act, what a landlord can and cannot collect, and the legal way to recover real damage costs.

Can my landlord keep my deposit in Ontario?

In most cases, no. Ontario does not have “security deposits” the way many other places do. Section 105 of the Residential Tenancies Act, 2006 (RTA) says the only security deposit a landlord may collect is a rent deposit, often called “last month’s rent.”

Section 106(10) then says the landlord must apply that deposit to the rent for the last rental period before the tenancy ends. In plain English: the deposit pays your last month. It is not a pool of money the landlord can dip into for damage, cleaning, paint or a missing remote.

The Landlord and Tenant Board (LTB) says the same thing in the brochure every landlord must hand to new tenants: the rent deposit must be used as rent for the last month and cannot be used for anything else, such as paying for damage.

What if I already paid my last month’s rent separately?

If you paid the deposit at the start and then also paid rent for the final month, the landlord is holding money that should have covered that month. A tenant who believes a landlord kept money in breach of the Act can apply to the LTB under section 135 (more on that below).

What can an Ontario landlord legally collect at the start of a tenancy?

The list is short. Section 106(2) caps the rent deposit at the lesser of one rent period or one month. If you pay monthly, that means one month’s rent at most. If you pay weekly, one week.

Section 134 bans almost every other upfront charge. A landlord cannot collect a “fee, premium, commission, bonus, penalty, key deposit or other like amount,” whether or not it is refundable, unless a regulation allows it. The regulation that carves out exceptions is Ontario Regulation 516/06, section 17.

Source: Residential Tenancies Act, 2006, ss. 105, 106 and 134; O. Reg. 516/06, s. 17; Ontario’s Guide to the Standard Lease (e-Laws and ontario.ca, consolidated to September 21, 2026).

Ontario’s guide to the standard lease lists “damage or pet deposits” as examples of terms that are void. Section 4 of the RTA says any lease term that conflicts with the Act is void, even if you signed it.

Does my landlord have to pay interest on my last month’s rent?

Yes. Section 106(6) requires the landlord to pay interest on the rent deposit every year, at the same rate as the provincial rent increase guideline in effect when the payment is due. The guideline is 2.1% for 2026 and 1.9% for 2027.

There is one twist landlords use, and it is legal. Under section 106(7), the landlord can keep the interest and use it to top up the deposit when the rent goes up, so the deposit still equals one month’s rent.

Example: your rent is $2,600 and you paid a $2,600 deposit. In 2027, a year’s interest at 1.9% is $49.40. If your rent rises to $2,649.40 or more, the landlord can keep that $49.40 to top up the deposit instead of paying it out. If the landlord simply never pays the interest and is not using it for a top-up, section 106(9) lets the tenant deduct it from a later rent payment.

Can my landlord charge me for cleaning when I move out?

Not as a flat fee, and not by deducting it from your deposit. Section 33 of the RTA makes the tenant responsible for “ordinary cleanliness” of the unit, unless the lease puts cleaning on the landlord. Ordinary means the standard most people would consider normal, not a hotel-level clean.

So if you leave the unit in reasonable shape, with normal dust, a few scuffs and worn carpet, the landlord cannot bill you for a professional clean. A lease clause that says “tenant pays $300 for cleaning at move-out” is a fee under section 134 and is void.

If a unit is left in a truly bad state, the landlord’s route is the LTB, not the deposit. The LTB’s brochure on collecting money from former tenants lists rent, compensation, NSF charges, unpaid utilities, damage, and costs caused by substantial interference. It does not list routine cleaning on its own, and it says normal wear and tear cannot be claimed. Whether a heavy cleaning bill counts as recoverable damage is for the adjudicator to decide on the evidence.

What counts as damage versus normal wear and tear?

Section 34 makes the tenant responsible for repairing “undue damage” caused wilfully or negligently by the tenant, another occupant, or a guest. Wilful means on purpose. Negligent means by not being careful enough. The LTB says it does not matter which one, as long as the damage goes beyond normal wear and tear.

The Act does not give a list, so here is how I explain it to clients, in plain terms:

• Usually wear and tear: faded paint, light scuffs, small nail holes from pictures, carpet worn along walking paths, loose cabinet hinges from years of use.
• Often damage: holes punched in drywall, burns on counters, pet urine soaked into floors, broken blinds or doors, large stains from spills left untreated.

The LTB adjudicator decides each case on the evidence. Photos and a dated move-in inspection carry a lot of weight on both sides.

How does a landlord legally recover money for damage in Ontario?

The landlord applies to the LTB. Section 89 lets a landlord ask for the reasonable cost to repair, or replace if repair is not reasonable, property damaged wilfully or negligently by the tenant, an occupant or a guest.

If the tenant has already moved out

The landlord files Form L10, Application to Collect Money a Former Tenant Owes. The LTB says this is only available if the tenant moved out on or after September 1, 2021, and it must be filed within one year of the move-out date. The landlord must serve the former tenant at their new address and share evidence such as photos, invoices and quotes at least 7 days before the hearing. The filing fee is $186 through the Tribunals Ontario Portal or $201 by other methods.

How much can the LTB order?

Under section 207, the LTB can order up to the greater of $10,000 and the Small Claims Court limit. The Small Claims limit is $50,000 under Ontario Regulation 626/00, so the LTB’s ceiling is effectively $50,000.

The landlord also has a duty under section 16 to take reasonable steps to keep losses down. Replacing a ten-year-old carpet with a brand new premium one, and billing the full cost, is the kind of claim an adjudicator may cut back.

What can I do if my landlord kept my deposit or charged an illegal fee?

Start in writing. Send the landlord a short, polite note that cites sections 105, 106 and 134 and asks for the money back by a set date. Many disputes end there, because many small landlords simply do not know the rules.

If that does not work, section 135 lets a tenant, former tenant or even a prospective tenant apply to the LTB for an order that the landlord repay money collected or kept in breach of the Act. The application is Form T1, and the filing fee is $48 through the portal or $53 otherwise. The deadline is one year from the date the money was collected or kept, so do not wait. My guide to the T2 application for tenant rights covers the related process when the issue is harassment or interference rather than money.

Bring your lease, proof of payment, bank records, texts and emails. If you have never been to the Board, read what actually happens at an LTB hearing first.

How do tenants and landlords avoid a move-out dispute?

Most of the fights I see come from missing evidence, not bad faith. A few habits fix most of it.

1. Do a walk-through at move-in and move-out. Both sides sign a short checklist with dated photos or video of every room, including inside appliances.
2. Put cleaning expectations in writing. The standard lease lets you add terms. A term that clarifies what “clean” means is fine. A term that imposes a fee is not.
3. Keep receipts. Landlords should keep repair invoices and quotes. Tenants should keep proof of rent paid, including the deposit.
4. Return keys and fobs. A refundable key deposit should come back when they do.

For a deeper look at deposit wording in leases, see my earlier piece on what a landlord can legally ask for as a rental deposit.

What to do next

1. Check your lease for any deposit, cleaning or pet clause, and compare it with sections 105, 106 and 134 of the RTA.
2. Work out the interest owed on your rent deposit using the guideline rate for each year (2.1% for 2026, 1.9% for 2027).
3. At move-out, do a joint walk-through and take dated photos and video of every room.
4. If money was kept illegally, ask for it back in writing, then file a T1 with the LTB within one year if needed.
5. Landlords with real damage should gather invoices and photos and file an L10 within one year of the tenant moving out.

Frequently asked questions

Sources

• Residential Tenancies Act, 2006, S.O. 2006, c. 17 (e-Laws, consolidated to September 21, 2026)
• O. Reg. 516/06 (General) under the Residential Tenancies Act, s. 17 permitted charges
• LTB brochure: A Guide to the Residential Tenancies Act
• LTB brochure: Information for New Tenants
• LTB brochure: Collecting Money a Former Tenant Owes
• Ontario: Guide to Ontario’s standard lease
• Tribunals Ontario: LTB forms, filing and fees
• O. Reg. 626/00, Small Claims Court Jurisdiction and Appeal Limit

Related reading

• Can My Landlord Enter Without Notice in Ontario?
• Can a Landlord Evict You Without Going to the LTB in Ontario?
• Can My Landlord Raise the Rent Every Year in Ontario? 2027 Rules
• Can a Landlord Put Security Cameras in or Outside a Rental in Ontario?