First and Last Month Rent Rules in Ontario

Written by Firas Swaida, RE/MAX Realty Services Inc., Brokerage. Updated July 2026.

In Ontario, a landlord can ask for first and last month’s rent as a rent deposit, and that is it. The last month’s deposit is applied to your final month in the unit, and it must earn interest each year at the provincial guideline rate.

What a landlord cannot do is charge a separate damage or security deposit, key deposits beyond the actual replacement cost, or automatic pet deposits. Those are not allowed under the Residential Tenancies Act.

Renting out an investment property in Mississauga and want it done right? Firas Swaida helps investors find tenants and understand the rules. Call or text (647) 402-4727.