Canadian Rental Deposit Rules Clarified for Landlords and Tenants

In Canada, landlords are prohibited from demanding a security deposit when signing a lease. The only payment that can be required in advance is the first month's rent. Any request for an additional amount, such as a deposit equivalent to several months’ rent, is illegal. Tenants may voluntarily offer a deposit, but it must be made freely without pressure, and any written agreement must be signed without coercion. The Administrative Housing Tribunal oversees disputes and can deem forced deposit agreements invalid.

Guidance on furnished rentals (bail meublé) notes that a standard contract lasts one year with tacit renewal, and that landlords cannot retain deposit funds unless justified by documented damages. The guide also highlights the importance of clear tenancy agreements, proper inventory checks, and the legal limits on rent increases after energy‑efficiency renovations.