Markham Security Deposit Rules for Landlords

Housing and Building Standards Ontario 3 Minutes Read · published May 24, 2026 Flag of Ontario

In Markham, Ontario, most rules about security deposits and returning rent deposits are set by provincial law rather than the city. Landlords and property managers in Markham must follow the Residential Tenancies Act and Landlord and Tenant Board procedures when taking, holding, and returning deposits, including last-months' rent. This guide explains what landlords may charge, how to document and return deposits, how disputes are handled, and the practical steps to comply locally. Read the sections below for enforcement, common violations, applications, and where to get official help. [1]

Only one rent deposit is generally permitted under Ontario tenancy rules.

Overview: Deposits landlords may take

Under provincial tenancy law landlords may collect a rent deposit typically applied to last month's rent; other types of security deposits are restricted by the Residential Tenancies Act and explained by the Landlord and Tenant Board. Document the amount, purpose, date received, and intended use in the tenant file. For formal dispute resolution, the Landlord and Tenant Board is the adjudicator for deposit returns and disputes. [2]

Penalties & Enforcement

Enforcement and remedies for improper deposits or failure to return a deposit are handled through provincial processes and, where applicable, municipal complaint channels for bylaw-related matters. Specific monetary fines for taking unauthorized deposits are not listed on the cited provincial page; remedies typically come from orders or awards by the Landlord and Tenant Board or provincial offence proceedings if a related statute is contravened. [1]

  • Monetary fines: not specified on the cited page; enforcement through tribunal orders or provincial offence processes.
  • Enforcer: Landlord and Tenant Board for tenancy disputes; City of Markham By-law Enforcement for local bylaw issues and complaints.[3]
  • Non-monetary remedies: orders to repay deposits, interest, and tribunal awards; possible court actions to enforce orders.
  • Appeals/review: decisions of the Landlord and Tenant Board have specific appeal routes and time limits set by statute or tribunal rules; check the Board's procedural pages for deadlines.
If you hold an unauthorized deposit, the tribunal may order repayment rather than allow retention.

Applications & Forms

There is no separate municipal deposit return form. Disputes about deposits are raised with the Landlord and Tenant Board using the Board's application process and forms for rent and deposit disputes; consult the Board for the correct application and filing instructions. [2]

Common violations and typical outcomes

  • Charging more than one months rent as a deposit — outcome: tribunal order for repayment or clarification (not specified on the cited page).
  • Failing to document or provide receipts for a deposit — outcome: increased likelihood of adverse finding by tribunal.
  • Using a rent deposit for damage without tribunal approval — outcome: tenant may apply to the Board for remedies.

How to comply and practical steps

Follow these steps to reduce dispute risk and ensure lawful handling of deposits.

  1. Document the deposit in writing at move-in with amount, date, and purpose.
  2. Keep an itemized record of any deductions and provide receipts where applicable.
  3. If a dispute arises, file the appropriate application with the Landlord and Tenant Board and follow filing deadlines.
Good records and clear receipts prevent most deposit disputes.

FAQ

Can a Markham landlord take a damage deposit in addition to rent?
No; Ontario rules limit permitted deposits—see the Residential Tenancies Act and Landlord and Tenant Board guidance for details.[1]
How long does a landlord have to return a deposit?
Time limits for returning deposits are governed by province and tribunal procedures; if not returned, tenants may apply to the Landlord and Tenant Board.[2]
Who enforces deposit rules in Markham?
The Landlord and Tenant Board enforces tenancy disputes; Markham By-law Enforcement handles municipal bylaw complaints that may be related.[3]

How-To

How to return a tenants deposit correctly:

  1. Confirm the deposit type and whether it is lawful under provincial rules.
  2. Calculate any lawful deductions with supporting evidence and itemize them.
  3. Return the balance by cheque or traceable payment and provide a receipt.
  4. If the tenant disputes the return, apply to the Landlord and Tenant Board for adjudication.
Always provide a written receipt when returning any deposit funds.

Key Takeaways

  • Provincial law controls security deposits for rental housing in Markham.
  • Keep detailed records and receipts to avoid tribunal disputes.

Help and Support / Resources

  1. [1] Government of Ontario - Residential Tenancies Act
  2. [2] Landlord and Tenant Board - Tribunals Ontario
  3. [3] City of Markham - By-law Enforcement

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