Renting a condo in Ontario comes with rules that both landlords and tenants must follow. Under theResidential Tenancies Act, 2006, landlords are permitted to collect certain payments, but the law is clear about which they are. Understanding condo landlord-tenant fees in Ontario helps tenants avoid being overcharged and keeps landlords on the right side of the law. A landlord can collect rent, last month's rent deposit, a refundable key deposit, and some utility or parking payments if those are in the lease. Knowing what is and isn't allowed makes the rental experience fair and stress-free for everyone.
Allowable Charges Condo Landlord Ontario Explained
When it comes to allowable charges, the list is shorter than many people think. All condo landlord-tenant fees in Ontario must be written clearly in the lease before the tenancy begins.
Rent and Basic Monthly Payments
Monthly rent is the most crucial payment in any rental, and tenants must pay it on time. The amount must be agreed upon before the lease is signed.
Facts about rent increases in Ontario:
- Ontario's rent increase guideline for 2026 is 2.1%, meaning a landlord renting a unit at $2,000 per month canraise it by a maximum of $42.
- Landlords must give at least 90 days' written notice before any increase takes effect.
- Rent can only go up once every 12 months.
Key Deposits with Clear Limits
A landlord may ask for a refundable key deposit to cover the actual cost of replacing keys, fobs, or access cards. The amount must not exceed the replacement cost. Once the tenant returns all keys, the full deposit must be given back.
Last Month's Rent Deposit Rules
Landlords may collect a deposit equal to one month's rent, which is held and applied to the final month's rent. This deposit cannot be used for repairs or cleaning. Landlords must also pay the tenant annual interest on this deposit, tied to the rent increase guideline.
Utilities, If Agreed in the Lease
If the lease clearly states who pays for utilities, the landlord may charge for them.
The utilities a tenant may be responsible for:
- Water charges
- Heat costs
- Electricity fees
Any utility charges must reflect actual use or a fair amount agreed to in the rental contract.
Parking Fees If Offered
Parking is a separate service, and a landlord may charge for it if offered to the tenant. The parking fee must be included in the lease from the start, and tenants should confirm upfront whether it is incorporated in the rent or is an optional add-on.
Condo-Related Fees Passed to Tenants
Some building-related costs may be included in the rent. A 2024 Auditor General of Ontario report found that69% of condo corporations lacked sufficient reserves for major repairs, suggesting that fee pressures will likely continue. Tenants should always ask what services any building-related charges cover.
Prohibited Charges Tenants Should Watch Out For in Ontario
Understanding what can landlord charge tenant for condo Ontario situations also means knowing what is not allowed. Any condo landlord-tenant fees in Ontario that fall outside the rules should be questioned or reported to the Landlord and Tenant Board.
Damage Deposits Are Not Allowed
Ontario law does not permit landlords to collect a damage or security deposit. The only deposits allowed are the last month's rent deposit and a refundable key deposit.
Tenants should remember:
- Any request for a damage deposit is illegal under the Residential Tenancies Act.
- Tenants have the right to refuse such a request without penalty.
- Landlords who collect illegal deposits can be ordered to return the money with interest.
- Tenants can file a complaint with the Landlord and Tenant Board if this occurs.
Cleaning Fees Before Move-In
A landlord cannot charge a cleaning fee before a tenant moves in. The condo must already be clean and ready at no extra cost to the tenant. Cleaning responsibilities after move-out may vary depending on the lease and the state of the unit.
Application or Processing Fees
Charging a fee to apply for a rental unit is not allowed in Ontario. This includes background checks, credit checks, or any other screening costs. All screening expenses are the landlord's responsibility.
Extra or Hidden Charges Not in the Lease
A landlord cannot add new charges after the lease has been signed.
What tenants should know:
- All costs must be clearly written in the lease before move-in
- Any charge that was not in the original agreement can be questioned or refused
- Tenants should read their lease carefully before signing
Understanding Fair Condo Landlord Tenant Fees Ontario
Every tenant and landlord in Ontario benefits from understanding the rules around rental payments. This is because knowledge is the strongest protection against unfair treatment. Ontario's Residential Tenancies Act was built to create a fair relationship between both parties, giving tenants real legal power to push back against illegal charges. Thus, reviewing your lease before signing, asking questions early, and keeping records of all payments can prevent many common disputes. A fair rental agreement builds trust, reduces conflict, and creates a more stable living situation for everyone involved. Whether you are a first-time renter or a long-time tenant, knowing these rules puts you in a much stronger position from day one.
