Late Fees, NSF Charges and Rent Receipts in Ontario
Many tenants are asked to pay late fees, administration fees or other charges. Ontario's rules on what a landlord can collect are tight, and tenants have a right to receipts.
- A landlord generally cannot charge a late fee for late rent. The remedy for unpaid rent is a notice and an LTB application, not a penalty.
- A landlord can recover the bank's charge for a payment that bounces, plus a modest administration charge capped by regulation.
- A landlord must give a rent receipt on request, for free.
- A tenant can apply to the LTB to get back illegal fees, usually within one year.
What a landlord can collect
- Rent, including any rent increases made properly.
- A last month's rent deposit, applied to the last month of the tenancy.
- A refundable deposit for keys, access cards or remote controls, limited to the replacement cost.
- A fee for a bounced cheque or a failed payment, limited to the bank's actual charge plus a small administration fee set by regulation.
- Utilities, if the lease says so, as part of the rent arrangement.
What a landlord generally cannot collect
- Late fees, administration fees or penalties for late rent.
- Damage deposits, pet deposits, application fees or move-in fees.
- A fee to renew the lease or for signing it.
- Anything else the Act does not allow, even if the lease says the tenant agreed.
How rent can be paid
- A landlord cannot require post-dated cheques or automatic payments as a condition of renting.
- A tenant can choose to offer them, and can later change how they pay by giving reasonable notice.
- Keep records of every payment: bank statements, e-transfer confirmations and receipts.
Rent receipts
A landlord must provide a written receipt on request. This is free, and applies whether the tenant pays by cash, cheque or transfer. Ask in writing and keep a copy of the request. Without receipts, proving what you paid becomes much harder if there is a dispute about arrears.
Getting illegal charges back
- Write to the landlord, name the charge, explain why it is not permitted and ask for a refund by a specific date.
- If they refuse, apply to the LTB for the return of money paid (a T1 application), usually within one year of the charge.
- Bring the lease, receipts, bank records and your written request.
Common questions
My lease says there is a $50 late fee. Do I have to pay it?
A term that conflicts with the Act is generally not enforceable, even if you signed it. Late fees for late rent are generally not permitted.
Can my landlord keep a pet deposit?
A pet deposit is not a permitted charge. Only a last month's rent deposit and a refundable key deposit are allowed.
Who can help. Licensed paralegals can represent landlords and tenants at the Landlord and Tenant Board (LTB).
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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