Ontario key deposit rules

Ontario is strict about deposits. Here's what a landlord can collect and what has to be refunded.

Ontario landlords can generally collect only two kinds of deposit: a rent deposit (usually last month's rent) and a refundable key deposit.
A key deposit must be refundable and can't be more than the expected cost of replacing the keys, cards or fobs.
It must be refunded when the keys are returned.
Damage or security deposits aren't permitted in Ontario.

What deposits are allowed

The Residential Tenancies Act and its regulation allow a rent deposit of no more than one rental period's rent (or one month, if the rent period is longer) and a refundable key deposit. Pet deposits, cleaning deposits and damage deposits aren't allowed.

How much can a key deposit be?

No more than the expected replacement cost of the keys, remote entry devices or cards. A charge above that amount isn't permitted. Keep a note or receipt showing how you set the amount.

Refunding the key deposit

When the tenant returns all the keys, fobs or cards, the key deposit must be returned. Record what was issued at move-in and what came back at move-out.

Your move-in inspection checklist is a good place to record exactly which keys and fobs were handed over.

Replacement keys during the tenancy

A landlord may charge a tenant for additional or replacement keys, cards or fobs the tenant requests, as long as the charge isn't more than the landlord's reasonable out-of-pocket cost.

Common questions

Can I keep the key deposit for damage?

No. A key deposit is only for keys and access devices. It isn't a damage deposit.

Is a fob deposit the same as a key deposit?

Yes. Remote entry devices and cards are treated like keys.

Can I ask for a pet deposit?

No. Pet deposits aren't permitted in Ontario.

Does interest apply to key deposits?

Annual interest rules apply to the rent deposit, not the key deposit.

What about last month's rent?

See the last month's rent interest calculator for the annual interest that must be paid on a rent deposit.

Official sources

Last reviewed September 2026. General information, not legal advice.