Key Deposits, Fobs and Parking Fees: What's Actually Allowed

The general rule behind all of these charges

Under the Residential Tenancies Act, 2006 (RTA), the only deposit a landlord can generally require as a condition of entering into or continuing a tenancy is the rent deposit discussed in our dedicated article on how rent deposits work — an amount capped at one rental period's rent, applied to the last period of the tenancy. This general rule has a significant knock-on effect for all sorts of smaller charges that come up around move-in: key deposits, fob deposits, parking fees, and similar amounts generally cannot be layered on top of the rent deposit as an additional required condition of the tenancy, even though landlords often frame them as routine administrative matters rather than deposits in the legal sense.

This can feel counterintuitive, since these smaller charges are often presented as standard practice, especially in larger buildings with professional management. But the RTA's approach is generally the same regardless of building size or how common a particular charge might be in a given market — common practice is not the same as lawful practice, and a charge that's widely collected across many buildings can still be something the Act doesn't actually permit.

Key and fob deposits specifically

A "key deposit" or "fob deposit" — a sum collected up front, meant to be returned when keys or an access fob are returned at the end of the tenancy — functions, in substance, as exactly the kind of extra deposit the RTA generally doesn't permit. Even though it's commonly described using the word "deposit" rather than being disguised as something else, that doesn't change the underlying analysis: it's an amount required as a condition of the tenancy, separate from the single permitted rent deposit, and it is generally not something a landlord can lawfully require.

Why "refundable" doesn't always make a charge lawful

Landlords sometimes assume that because a key or fob deposit is refundable — meaning the tenant gets it back as long as the item is returned — it must be fine, since the tenant isn't permanently out any money. This reasoning generally doesn't hold up under the RTA, because the problem isn't really about whether the money is eventually returned; it's about whether the landlord can require an extra deposit as a condition of the tenancy at all, separate from the one deposit the Act actually permits. A refundable key deposit is still generally treated as an unauthorized additional deposit, even though it's designed to come back to the tenant eventually.

Parking fees and how they're treated differently

Parking is treated somewhat differently from a key or fob deposit because an ongoing, legitimate parking fee is generally understood as part of what a tenant is paying for as part of their overall tenancy, rather than as a security-style deposit meant to be held and later returned. Where parking is bundled into rent, its value forms part of rent itself, as discussed in our companion article on what counts as rent under the RTA. Where parking is charged as a genuinely separate, ongoing monthly fee rather than a one-time refundable deposit, that structure is generally viewed differently from a key deposit — though a mandatory parking charge still generally interacts with the broader rent and rent-increase rules, since it's part of what the tenant pays to occupy the unit under the tenancy arrangement.

Application fees and administrative charges

Prospective tenants are sometimes asked to pay an "application fee" or "administration fee" before a tenancy even begins, separate from both the rent deposit and any key or parking charge. Charging a fee simply for processing a rental application, separate from any legitimate cost actually recoverable under the RTA, is generally not something the Act permits either — a landlord's costs of screening or selecting a tenant are generally not something that can be passed on to applicants as a required fee. A credit check a prospective tenant voluntarily obtains and provides themselves is a different situation from a landlord requiring a payment as a condition of considering an application.

This can come up in competitive rental markets where landlords receive many applications and look for ways to narrow the pool, sometimes by charging a nominal fee intended to discourage casual applicants. Whatever the underlying business rationale, the RTA's general approach doesn't generally carve out an exception for this purpose, and a prospective tenant who's asked to pay simply to be considered is generally within their rights to decline or to raise the issue if the landlord insists.

Pet deposits and pet-related charges

A "pet deposit" — an extra amount collected specifically because a tenant has or wants a pet — raises the same basic issue as a key deposit: it's generally an additional required deposit beyond the single permitted rent deposit, and is generally not something the RTA allows regardless of the stated reason for collecting it. This is a fairly common area of confusion, since many tenants and landlords assume pet-related charges are simply a normal part of renting with a pet, similar to practices in some other jurisdictions, when Ontario's framework generally doesn't carve out a separate exception for this purpose.

What a landlord can charge if a key or fob is lost

It's worth distinguishing a deposit collected up front from a charge for an actual loss that occurs later. If a tenant genuinely loses a key or fob during the tenancy, or fails to return it at the end, a landlord may generally be able to seek reasonable compensation for the actual cost of replacement — this is different from requiring an upfront deposit as a blanket condition of the tenancy, and is instead closer to compensation for an actual loss that occurred. The distinction matters: an upfront deposit collected from every tenant regardless of whether anything is ever lost is generally not permitted, while a reasonable charge tied to an actual, demonstrated loss is a different kind of claim.

What a tenant can do about an improper charge

A tenant who has been asked for, or has already paid, a key deposit, fob deposit, pet deposit, or similar charge beyond the single permitted rent deposit generally has options. They can raise the issue directly with the landlord, pointing out that the charge isn't something the RTA permits, and ask for it to be waived or refunded. If that doesn't resolve things, a tenant may generally be able to apply to the LTB to recover an improperly collected amount. Keeping receipts or records of any such payment — even an informal e-transfer — generally makes it easier to establish exactly what was charged and when if the issue needs to go further.

It's also worth being proactive before a tenancy even begins. A prospective tenant who's asked to pay a key deposit, pet deposit, or application fee as a condition of being approved can raise the issue at that stage, before any money changes hands, rather than trying to unwind the payment afterward. Doing so in writing — even a short, polite message referencing the RTA's rules on permitted deposits — can sometimes prompt a landlord to simply waive the charge rather than risk a later dispute, particularly where the landlord genuinely wasn't aware the practice was out of step with Ontario's rules rather than deliberately trying to collect something improper.

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Reviewed by Ryan J. Manilla, BA, JD

Legal Reviewer · Landlord Tenant Ontario