Damage and Key Deposit - Legal?

[ForumUser]

hi there,

I’ve just rented an apartment for 1050 a month plus utilities .

The landlord is apparently on vacation so his friend is doing business. i paid first and last months rent already and the friend is asking for 500 more dollars for a damage deposit and 100 dollars for the keys. i feel like they are trying to suck the money out of me is this even legal?

The contract states once I move out of the apartment they will give back the 600 dollars.

[SettlementOrgMod]

Hello,

Thank you for sharing your situation and question with us.

We can appreciate that you would be concerned about this and would be interested in finding out what your rights are.

You can find some information on the CLEO - Before You Move document.

Here is an excerpt,

Your landlord can also ask you for a deposit for your keys or access card. But the amount cannot be more than it would cost to replace them. Your landlord must give this deposit back to you when you move out and return the keys or card.

[…]

Most other deposits, extra charges, or advance payments are illegal. For example, sometimes landlords say that if you want to get the apartment, you must buy something in it, such as curtains or appliances, or that you must pay a damage deposit, rental fee, or commission. This is illegal.

It is also important to note regarding rent deposits, according to the Social Justice Tribunals Ontario - 2017 Rent Increase Guideline,

The guideline and rent deposits: Every year, the landlord must pay the tenant interest on the rent deposit. The interest rate is the same as the rent increase guideline.

If you have any additional concerns, it may be best to contact the nearest Community Legal Clinic for some advice regarding your situation.

I hope this information is helpful. Please let us know if you have further questions and if there is any follow up to your question/situation.

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Anna
Settlement.Org Content and Information/Referral Specialist, CIRS
Settlement.Org