Hey everyone,

I'm heading to Toronto next week on the BUNAC programme. I have a quick question regarding the regulations for deposits on rented property, in the UK it is now law that a 3rd party (Deposit Protection Service) holds the deposit so that the landlord gains no financial benefit from witholding the money. What is the situation in Canada? I just want to know where I stand! Thanks,

Matt

There is no equivalent law. The landlord holds the money.

We used to rent an apartment in downtown Toronto from a company called Greenwin, they held one months rent as a deposit and at the end of the tax year they had to give us a cheque for interest on the deposit. (Interest was 6%). This link may help with some general information.


http://www.fsatoronto.com/programs/social/housing.html

Hi MattWebb;

You need to be able to give over the first and last months rent. The last months rent is held by the landlord. This is the only legal deposit that a landlord can hold.

You might want to check out a few tenant sites to get yourself up to speed:

http://www.ontariotenants.ca/law/law.phtml
http://www.ltb.gov.on.ca/en/index.html

Good luck

Thanks. Looks like it should be ok.

It is actually illegal in Ontario for a landlord to ask for a security deposit. It is also illegal for them to ask for post-dated cheques to cover the years rent (as it's technically illegal to write a post-dated cheque anyway.)

Laws vary according to the province.

In NB it is illegal for the landlord to hold the deposit. It MUST be delivered to the Rentalsman Office within 7 days.

That's not to say it always is, of course, just that it should be.

Thanks again, I'll bear all this in mind when I look for a house. Hopefully it will all go smoothly!

while this is true, you must underscore the technically. Landlord's still ask (more for PD cheques than security deposits) and in some cases insist. you can tell them you know they're not allowed to do it, and you'll probably be faced with a shrug or a closed door in response.

personally, I insist on post-dated cheques from tenants and won't rent without them (too much hassle) and most tenants prefer it that way as well (less hassle for them too). I don't ask for a security deposit but I do ask for half of the first months rent on "sealing the deal" which is non-refundable. I then apply this money to the first and last months' rent total, the balance of which is due on moving in day.

by the way, I'm not 100% sure that security deposits are in fact illegal - I'll have to check. There used to be something called "key money" which is illegal (a bribe, essentially, to get the tenant paying the key money to the landlord or the superintendent the apartment in the good old days of non-existent vacancy rates in toronto) and then started to be called "security deposits" for the optics.

Well that's not very cool now is it?

Good luck in the househunt Matt. Be joining you shortly with any luck.

If you intend renting a property, do you have to provide references etc. before you sign any contract.

thanks
Ruby

Hi RubyRose,

Nice places usually require Rental Application Form, Credit Check and Letter of Employment. Most Landlords will call the references that you provide on the rental application and normally they will call the employer to verify that the document that you have given them is genuine.

Hope that this helps

I have a very nice place. I've never done any of this and I only ever had one enquiry from another landlord about an ex tenant.

Sometimes I feel like the landlord should be providing possible tenants with a reference from previous tenants.