How to Get Your Deposit or Last Month's Rent Back
The step-by-step process for recovering money a landlord won't return.
The step-by-step process for recovering money a landlord won't return.
A last month's rent deposit is generally meant to be applied to your actual last month of tenancy, not held indefinitely as a general security deposit. In most cases, Ontario law generally does not allow a landlord to collect a separate damage deposit at all, so if your landlord is holding something described that way, it is often really a last month's rent deposit regardless of the label used.
Our guide on rent deposits in Ontario explained covers how these deposits generally need to be treated, including the interest a landlord is generally required to pay on it annually. If you've already moved out and the landlord has not applied, returned, or accounted for the deposit, you are generally entitled to ask for it back, along with any accrued interest owed.
There are generally two common scenarios tenants find themselves in. The first is where the tenancy ended cleanly — rent was fully paid up to the move-out date, and the deposit should simply have been applied as the final month's rent or refunded if it wasn't needed for that purpose. The second, somewhat more complicated, is where the landlord claims the tenant still owes money for damage, cleaning, or something else entirely unrelated to rent, and is treating the deposit as covering that instead. Understanding which situation you're in generally shapes how you frame your request, since the first is usually a straightforward accounting issue and the second often requires explaining why a damage-style deduction isn't a valid basis for withholding this specific deposit.
A landlord generally cannot keep a last month's rent deposit to cover damage to the unit. Damage claims are generally handled separately, through the LTB, and are not meant to be set off informally against a deposit that was collected to cover rent.
Before contacting the landlord, it's worth pinning down exactly what you believe you're owed and why. Taking the time to do this calculation carefully, in writing, before you reach out tends to make the whole process faster, since it gives the landlord a specific figure to respond to rather than a general complaint.
A direct, written request is generally the fastest and simplest way to resolve this, and it also creates a paper trail that will matter later if the landlord still doesn't pay.
Some tenants assume that because they moved out owing nothing, the deposit should be automatically mailed back. In most cases, a tenant generally needs to actively follow up with the landlord, and often needs to apply to the LTB, to actually recover an unreturned deposit.
If the landlord does not respond or refuses to pay what's owed, the next step is generally a T1 application (Tenant Application for a Rebate) with the LTB. This is a monetary application, meaning the focus is generally on the amount owed and the documentation supporting it, rather than any broader dispute about the tenancy itself.
If you're also dealing with a landlord who simply won't engage at all, our guide on what happens if your landlord won't return your deposit looks at this specific scenario in more depth, including what realistic next steps look like.
At the hearing, a deposit-recovery claim is usually one of the more straightforward types of cases, since it generally turns on fairly simple documentation rather than a complex factual dispute.
If the LTB agrees that the deposit (and any interest) is owed, it will generally issue a monetary order requiring the landlord to pay a specific amount by a specific date. If the landlord still doesn't pay, the order can generally be filed with the Small Claims Court for enforcement, which may include collection steps such as garnishment, consistent with the general enforcement process described in our LTB orders and enforcement guide.
It's worth keeping the order itself in a safe place, since you may need to refer back to it, or provide a copy to the court, at the enforcement stage. The timeline from filing a T1 application to receiving a final order can vary considerably depending on the LTB's current scheduling, so it's generally sensible to treat this as a process measured in months rather than weeks, and to keep following up through the proper channels in the meantime rather than assuming the claim has stalled.
Several avoidable issues tend to slow down or complicate deposit-recovery claims.
Generally, no. This type of deposit is generally meant to be applied only to unpaid rent for your last rental period, not to damage, which is generally pursued through a separate process.
Generally, yes. A landlord is generally required to pay interest on a last month's rent deposit each year it's held, calculated at a rate generally tied to the annual rent increase guideline.
Generally a T1 application (Tenant Application for a Rebate), which covers situations including an unreturned or improperly applied deposit along with any interest owed.
Generally, yes, a T1 application typically needs to be filed within one year of the amount becoming owed, so it's best not to wait too long after moving out.
In most cases, Ontario law generally does not permit a separate damage deposit for a typical residential tenancy, so money collected under that label is often still treated as a rent deposit regardless of what it was called.
Generally, a claim tied to a rent deposit under the RTA is handled through the LTB using a T1 application, rather than starting directly in Small Claims Court, though Small Claims Court can become relevant later for enforcing an unpaid LTB order.
Generally your lease, any deposit receipt, move-in and move-out records, and copies of any written requests you sent the landlord about returning or applying the deposit.
Generally, yes, you can still apply, though other evidence such as bank records, e-transfer confirmations, or the lease itself referencing the deposit amount will generally help support your claim.
An unpaid monetary order can generally be filed with the Small Claims Court for enforcement, which may include further collection steps if the landlord still doesn't comply voluntarily.
Not necessarily, many tenants handle a T1 application on their own, but if the amount involved is significant or the landlord is raising a complex counter-claim, getting advice from a licensed paralegal or lawyer is generally worthwhile.
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