Never send a rental deposit by e-Transfer before you’ve verified the landlord actually owns or manages the unit and viewed it in person or on a live video call. If you already paid a deposit legally and the landlord won’t give it back, or charged you a “damage deposit” that doesn’t legally exist in Ontario, you can file a Form T1 with the Landlord and Tenant Board to get it back.
This covers two separate risks in the same situation: getting scammed before you move in, and getting cheated on your deposit after you move out.
Before you move in: spot the phantom landlord scam
A common scam works like this: someone rents a real apartment short-term (often through Airbnb), lists it on Kijiji or Facebook Marketplace as a long-term rental at a below-market price, shows it to dozens of people over a weekend, collects a deposit from each one by e-Transfer, then disappears before anyone moves in.
Warning signs, per the Competition Bureau of Canada:
- Rent noticeably lower than comparable units nearby.
- Being asked for a deposit before signing any lease.
- Being asked to send money to someone outside the country, or before ever meeting in person.
- Photos that only show the outside of the building, or that don’t match the actual unit.
Before sending anything, the Financial Consumer Agency of Canada recommends visiting the unit in person (or over live video if you can’t), confirming the person showing it is the actual landlord or an authorized agent, and doing a reverse image search on the listing photos to check they haven’t been copied from another ad.
After you move out: know what deposits are actually legal
In Ontario, under the Residential Tenancies Act, a landlord can legally collect exactly two things at move-in:
- A last month’s rent deposit, capped at one month’s rent, which must be applied to your final month, not damage or cleaning. The landlord owes you interest on it every year.
- A key deposit, capped at the actual cost of replacing the keys, refunded when you return them.
Everything else, a “damage deposit,” “pet deposit,” “cleaning fee,” or any other security deposit, is an illegal charge. A landlord cannot deduct from your key deposit for normal wear and tear.
If your landlord won’t give it back
- Send a written demand (email or letter) referencing the deposit and asking for it back by a specific date.
- If they refuse or ignore you, file Form T1 (Tenant Application for a Rebate of Money the Landlord Owes) with the Landlord and Tenant Board. You can claim illegal charges paid within the last 12 months, and file online through the Tribunals Ontario Portal.
- Keep records: the lease, move-in/move-out photos, e-Transfer confirmations, and any messages where the landlord acknowledges the deposit.
Most landlords who charged an illegal deposit knowingly are counting on tenants not knowing the rules or not bothering to file. A filed T1 application changes that calculation immediately.
Outside Ontario
British Columbia and Alberta have similar rules against arbitrary deposits, handled by the Residential Tenancy Branch and the Residential Tenancy Dispute Resolution Service respectively, but the specific caps, forms, and deadlines differ from Ontario’s. Check your own province’s tenancy authority before filing anything.