How do deposits and leases work?
Renting is run by each province, so the deposit you pay and how much your rent can rise depend on where you live. Ontario and BC cap yearly increases for most tenants; Alberta doesn’t. Each province has its own board to settle disputes.
In 30 seconds
- Deposits are capped: last month’s rent in Ontario, half a month in BC and Nova Scotia, one month in Alberta, and none at all in Quebec
- For 2027 the rent increase cap is 1.9% in Ontario and 2.2% in BC. Nova Scotia caps rises at 5% until the end of 2027
- You usually arrange electricity, internet and tenant insurance yourself; heat and water are often included in apartments
Deposits by province
Unlike the UK, there is no national deposit protection scheme. Each province sets its own limits.
| Province | What a landlord can take | Notes |
|---|---|---|
| Ontario | Last month’s rent deposit, plus a refundable key deposit | No damage, pet or cleaning deposits. The deposit can only be used for your last month, and earns interest at the guideline rate |
| British Columbia (BC) | Security deposit up to half a month’s rent, plus a pet damage deposit up to half a month | No monthly pet fees. If you overpay, you can deduct the excess from rent after telling the landlord in writing |
| Alberta | Security deposit up to one month’s rent | Must be held in a trust account and earns interest set by regulation |
| Quebec | No security deposit | The landlord can require only the first month’s rent in advance |
| Nova Scotia | Up to half a month’s rent in total | Only after the lease is signed. Pet and other deposits count towards the cap |
In Ontario a landlord can also collect your first month’s rent before you move in. On a C$2,500 Toronto flat that means C$5,000 (about £2,700) at signing. The moving fund calculator adds it up.
The lease
Many leases start as a 12-month fixed term and then continue month to month. In Ontario most private landlords must use the government’s standard lease form. If they don’t, you can ask for it in writing, and they have 21 days to provide it. In Quebec the lease is a standard form too, and many leases end on 30 June, so 1 July is the province’s busy moving day. Take dated photos of every room when you move in, as evidence for when you leave.
Rent increases
| Province | Rule for existing tenants |
|---|---|
| Ontario | 2.1% for 2026 and 1.9% for 2027. Once every 12 months, with 90 days’ written notice. Units first occupied on or after 15 November 2018 are exempt from the cap |
| BC | 2.3% for 2026 and 2.2% for 2027. Once every 12 months, with 3 full months’ notice |
| Alberta | No cap on the amount. Once every 12 months, with about 3 months’ written notice for periodic tenancies |
| Quebec | No fixed cap: the TAL publishes a calculation method. For 2026 it uses a base of 3.1% plus some cost changes. You can refuse an increase, and the landlord must then apply to the TAL |
| Nova Scotia | 5% a year cap, extended to 31 December 2027 |
Check the live figure with your provincial tenancy body Caps apply to sitting tenants. When a home is re-let to someone new, the landlord can usually set any rent, so the figure on a new listing isn’t capped.
Tenant boards
Each province has a tribunal or service that deals with deposits, repairs, rent and evictions. You don’t need a lawyer.
| Province | Body |
|---|---|
| Ontario | Landlord and Tenant Board (LTB) |
| BC | Residential Tenancy Branch (RTB) |
| Alberta | Residential Tenancy Dispute Resolution Service (RTDRS), with offices in Edmonton and Calgary |
| Quebec | Tribunal administratif du logement (TAL) |
| Nova Scotia | Residential Tenancies Program |
In Ontario, if a landlord took an illegal deposit or fee, you can apply to the LTB to get it back. In Nova Scotia, tenants charged an application fee can apply to the Residential Tenancies Program for a refund.
Utilities
- Heat and water are often included in apartment buildings; in houses you usually pay them
- Electricity (“hydro”) comes from your local utility in most provinces, such as Toronto Hydro, BC Hydro or Hydro-Québec. Alberta has a competitive market with many retailers
- Natural gas heating is common in Ontario, Alberta and BC
- Set up internet early, as installation can take a week or two: see Phone and internet
Tenant insurance
Your landlord’s insurance doesn’t cover your belongings or your liability. Tenant insurance covers both. It isn’t required by law, but many leases require it. In Ontario, Steps to Justice says a landlord can require liability cover but not contents cover. Ratehub figures put the average at about C$23 a month: C$21 in Ontario and C$26 in BC. Many landlords want proof before handing over keys.
What to do next
- Check your province’s deposit limit before you pay anything
- Take dated photos of every room on move-in day
- Arrange tenant insurance and hydro before you collect the keys
- Tribunals Ontario: Guide to the Residential Tenancies Act
- Ontario Landlord: Ontario rent increase guideline 2026 (2.1%)
- Durham Region: Rent increase guideline for 2027 (information report)
- BC Government News: 2027 maximum allowable rent increase (Aug 2026)
- Government of BC: Tenancy deposits and fees
- Government of Alberta: Residential Tenancy Dispute Resolution Service overview
- liv.rent: Security deposit rules in Alberta
- Gouvernement du Québec: Exiger un dépôt de garantie est illégal
- Éducaloi: Le dépôt de garantie, illégal mais répandu
- APQ: Rent increases 2026, a new method
- CBC News: Illegal rental deposit, tenant fighting to recoup money (Nova Scotia)
- Nova Scotia Government: Changes to rent cap and Residential Tenancies Act (Sep 2024)
- Steps to Justice (CLEO): Check your rental agreement
- Spring Financial: Tenant insurance in Canada (Ratehub averages)