Kaza · tenancy rules
Ontario
The deposit maximum, who holds it, the rent-increase cap, the notice period and the late-fee rule in Ontario, each quoted from the regulator's own published material.
Last changed 2026-01-01. Kaza re-verifies every rule by 2026-12-31, and the build fails if it is overdue.
How much can a landlord charge for a security deposit in Ontario?
In Ontario the security deposit on a monthly tenancy is capped at one month's rent. Other tenancy types differ: weekly: one week's rent. The cap is set by statute and a tenancy agreement cannot raise it.
“Where the tenant pays rent by the month, the deposit cannot be more than one month's rent; where the tenant pays rent by the week, the deposit cannot be more than one week's rent. The rent deposit can only be used as the rent payment for the last month or week before the tenant moves out. It cannot be used for anything else, such as repairing damage to the rental unit. A landlord must pay the tenant interest on the rent deposit every year. Under the Act, the interest rate is the same as the rent increase guideline.”
Who holds the security deposit in Ontario?
It is held by the landlord. In Ontario this is a RENT deposit: it may be applied only to the rent for the last rental period, never to damage, and the landlord owes the tenant interest on it every year at the rent increase guideline rate. Interest is payable to the tenant.
“Where the tenant pays rent by the month, the deposit cannot be more than one month's rent; where the tenant pays rent by the week, the deposit cannot be more than one week's rent. The rent deposit can only be used as the rent payment for the last month or week before the tenant moves out. It cannot be used for anything else, such as repairing damage to the rental unit. A landlord must pay the tenant interest on the rent deposit every year. Under the Act, the interest rate is the same as the rent increase guideline.”
How much can a landlord raise the rent in Ontario?
Rent may be increased by no more than 2.1% and no more than once every 12 months. A larger increase, up to 5.1%, is possible only with the regulator's approval for justified capital expenditure. No increase at all is allowed in the first 12 months of a tenancy.
“The rent increase guideline for 2026 is 2.1%. The landlord must give a tenant written notice of a rent increase in the proper form at least 90 days before it takes effect. In most cases, the rent for a residential unit can be increased if at least 12 months have passed since the last rent increase, or the date the tenancy began. Rent increases for capital expenditures or security services cannot be more than 3% above the guideline each year. New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.”
How much notice does a rent increase need in Ontario?
At least 90 days' written notice before the new rent starts. A notice served late does not take effect early: the date moves, not the rule.
“The rent increase guideline for 2026 is 2.1%. The landlord must give a tenant written notice of a rent increase in the proper form at least 90 days before it takes effect. In most cases, the rent for a residential unit can be increased if at least 12 months have passed since the last rent increase, or the date the tenancy began. Rent increases for capital expenditures or security services cannot be more than 3% above the guideline each year. New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.”
Can a landlord charge a late fee in Ontario?
The late fee in Ontario is the amount the landlord's own bank charged for the returned payment, not a figure the landlord chooses. In Ontario a landlord may recover only the NSF charge their bank actually levied plus an administration charge of at most $20 per cheque. There is no lawful late fee beyond that, and NSF amounts cannot be included in a notice of termination for arrears.
“the amount of NSF charges paid to a financial institution in respect of cheques tendered to the landlord by the tenant or former tenant, plus the landlord's administrative charges in respect of those cheques. The administrative charges are limited to a maximum of $20.00 per cheque per section 17 of Ontario Regulation 516/06. Although a landlord may apply for NSF charges, they cannot be claimed in an N4 notice of termination.”
This is not legal advice
Kaza applies published provincial tenancy rules and shows the source it used, and it refuses to answer when a rule is unverified or overdue for review rather than guessing. It does not know the facts of your tenancy, any order made about it, or any agreement between the parties. For advice on a specific situation, speak to the tenancy regulator for the province or to a lawyer.
These same rules are enforced inside the product: Kaza refuses to raise an unlawful charge or serve an unlawful notice, rather than warning about one. How the compliance engine works.