July 19, 2011

It’s been reported the Ontario Court of Appeal has ordered a landlord to return the rental deposit to a prospective tenant even though it was the tenant who changed her mind about renting the unit and moving into it!

The Court has set new rules for tenancy deposits that has important implications in what landlords need to put in their rental applications and how the Landlord and Tenant Board makes decisions about tenancy deposits.

Ken Hale, the Director of Advocacy and Legal Services at the Advocacy Centre for Tenants Ontario says:  “This decision makes it clear that rental deposits are only for last months’ rent and if a tenant decides not to move in, the landlord does not have an automatic right to keep it,”

Hale goes on to say:  “Most tenants do not have extra money to put more than one deposit down when looking for a place to live.  If a landlord keeps a deposit improperly, the tenant’s ability to put a roof over their head can be put in jeopardy.”

Read the original article on this decision here

Discuss this topic at the Ontario Landlords Advice Forums here