The following is excerpted from the Ontario Tenants Protection Act

Excerpts

PART VI
RULES RELATING TO RENT

General Rules

Security deposits, limitation

117. (1) The only security deposit that a landlord may collect is a rent deposit collected in accordance with section 118.

Definition

(2) In this section and section 118,

"security deposit" means money, property or a right paid or given by, or on behalf of, a tenant of a rental unit to a landlord or to anyone on the landlord's behalf to be held by or for the account of the landlord as security for the performance of an obligation or the payment of a liability of the tenant or to be returned to the tenant upon the happening of a condition. 1997, c. 24, s. 117.

Rent deposit may be required

118. (1) A landlord may require a tenant to pay a rent deposit with respect to a tenancy if the landlord does so on or before entering into the tenancy agreement.

Amount of rent deposit

(2) The amount of a rent deposit shall not be more than the lesser of the amount of rent for one rent period and the amount of rent for one month.

Same

(3) If the lawful rent increases after a tenant has paid a rent deposit, the landlord may require the tenant to pay an additional amount to increase the rent deposit up to the amount permitted by subsection (2).

Qualification

(4) A new landlord of a rental unit or a person who is deemed to be a landlord under subsection 47 (1) of the Mortgages Act shall not require a tenant to pay a rent deposit if the tenant has already paid a rent deposit to the prior landlord of the rental unit.

Interest

(6) A landlord of a rental unit shall pay interest to the tenant annually on the amount of the rent deposit at the rate of 6 per cent per year.

Same

(7) Where the landlord has failed to make the payment required by subsection (6) when it comes due, the tenant may deduct the amount of the payment from a subsequent rent payment.

Rent deposit applied to last rent

(8) A landlord shall apply a rent deposit that a tenant has paid to the landlord or to a former landlord in payment of the rent for the last rent period before the tenancy terminates.

Rent deposit, prospective tenant

118.1 (1) A landlord shall repay the amount received as a rent deposit in respect of a rental unit if vacant possession of the rental unit is not given to the prospective tenant.

Post-dated cheques

119. Neither a landlord nor a tenancy agreement shall require a tenant to provide post-dated cheques or other negotiable instruments for payment of rent. 1997, c. 24, s. 119.

Receipt for payment

120. A landlord shall provide free of charge to a tenant, upon the tenant's request, a receipt for the payment of any rent, rent deposit, arrears of rent or any other amount paid to the landlord. 1997, c. 24, s. 120.

Human Rights Code

Selecting prospective tenants

38. In selecting prospective tenants, landlords may use, in the manner prescribed in the regulations made under the Human Rights Code, income information, credit checks, credit references, rental history, guarantees, or other similar business practices as prescribed in the regulations made under the Human Rights Code. 1997, c. 24, s. 38.

Ontario Human Rights
The Code:
PART I
FREEDOM FROM DISCRIMINATION
Accommodation
2. (1) Every person has a right to equal treatment with respect to the occupancy of accommodation, without discrimination because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, marital status, same-sex partnership status, family status, disability or the receipt of public assistance. R.S.O. 1990, c. H.19, s. 2 (1); 1999, c. 6, s. 28 (2); 2001, c. 32, s. 27 (1).

Harassment in accommodation

(2) Every person who occupies accommodation has a right to freedom from harassment by the landlord or agent of the landlord or by an occupant of the same building because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, age, marital status, same-sex partnership status, family status, disability or the receipt of public assistance. R.S.O. 1990, c. H.19, s. 2 (2); 1999, c. 6, s. 28 (3); 2001, c. 32, s. 27 (1).

Prescribing business practices

(3) The right under section 2 to equal treatment with respect to the occupancy of residential accommodation without discrimination is not infringed if a landlord uses in the manner prescribed under this Act income information, credit checks, credit references, rental history, guarantees or other similar business practices which are prescribed in the regulations made under this Act in selecting prospective tenants. 1997, c. 24, s. 212 (1).

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