A payment label is not the answer: checking Ontario rent-deposit rules
Compare a payment’s amount, date, description, and tenancy records with current sections 105 and 106 before drawing a conclusion from its label.
If you are reviewing an Ontario payment described as a deposit, start with the current official wording before treating that label as a conclusion. This is general information, not legal, tax, accounting, or professional advice. It does not decide whether the Act applies to your tenancy, what a payment is in your facts, whether a payment is permitted, or how a dispute should turn out.
Read the current Act first
Section 105 of the Residential Tenancies Act, 2006 is headed “Security deposits, limitation.” It says that the only security deposit a landlord may collect is a rent deposit collected in accordance with section 106. Read the current consolidation and both sections together before reaching a conclusion about a payment.
Section 106 is headed “Rent deposit may be required.” Its first subsection addresses when a landlord may require a rent deposit. Its second subsection sets the stated maximum by reference to the lesser of one rent period and one month. The same section also has provisions about later rent increases, a new landlord, and interest. Those are reasons to read the full current section rather than rely on a label, a saved summary, or this article.
Check the applicability context
Ontario's Renting in Ontario: Your rights page says the Residential Tenancies Act applies to most private residential rental units. It also says that many rent rules do not apply to some rental types. Use that page for general context, then return to the current Act for the precise wording relevant to your question. Do not use this article to decide whether the Act or a particular provision applies to a tenancy.
Put the existing facts in one place
Before reading the source, gather the records you already have:
- the payment date, amount, and description;
- the tenancy agreement or other record that mentions the payment;
- the rental-unit and party details connected to the record; and
- the factual question you want to compare with the current wording.
This is an editorial preparation list, not an official form, a legal template, or a conclusion that a payment is permitted or properly described. It is meant to help you read the original source and explain the facts to qualified help if you need it.
Keep the question narrow
Ask: “What do current sections 105 and 106 say about this deposit-record question?” That is different from asking this article to classify a payment, calculate an amount or interest, tell someone what to collect or pay, resolve a disagreement, or determine a legal outcome.
Sources and scope
The Act is the governing source named here; Ontario's page is explanatory context. They were rechecked on July 29, 2026. Rules and current consolidations can change, so re-open the original source before acting and obtain qualified advice for your facts.
From the team behind The Brief
The Brief is produced by the same team that operates EaseLease, a Canada-first rental-record tool for landlords with 1–5 units. Its sample-data tour shows sample property, ledger, and export views; the tour is isolated from real accounts and resets when you leave or reload. EaseLease does not classify payments, determine legal requirements, or provide legal, tax, or accounting advice.