First and last month's rent + bond

[christa1]

Hi there,

From what I understand, when renting a place in Toronto you need to put down 2 months worth of rent upfront (first and last).

A couple of questions:
1. Does this mean that, once you put down that money, you don't have to pay rent for the first and the last month?
2. In other countries you usually would need to pay what is called a 'bond', which is held by the landlord until the end of the lease and is used to pay for any damage that you might cause to the premises. If no damage - the bond is refunded to you 100% at the end of the lease. Is there anything like this in Toronto, or is it just the first and last month's rent?

 

[torontosm]

Hi there,

From what I understand, when renting a place in Toronto you need to put down 2 months worth of rent upfront (first and last).

A couple of questions:
1. Does this mean that, once you put down that money, you don't have to pay rent for the first and the last month?
2. In other countries you usually would need to pay what is called a 'bond', which is held by the landlord until the end of the lease and is used to pay for any damage that you might cause to the premises. If no damage - the bond is refunded to you 100% at the end of the lease. Is there anything like this in Toronto, or is it just the first and last month's rent?

1. Yes, that's correct. The cheques you provide for 1st/last months rent will be cashed at the appropriate time.
2. No, any such deposit is illegal. you may have to pay an additional deposit for keys/fobs, etc. but even that is capped by law.

 

[christa1]

Thanks!

Another question - you mention cheques - does that mean the last month's rent gets only cashed during the last month (i.e. you actually have that cash at your disposal until then)?

 

[arthurbr]

Thanks!

Another question - you mention cheques - does that mean the last month's rent gets only cashed during the last month (i.e. you actually have that cash at your disposal until then)?

It depends on where you rent. In my case, for example, I provided a money order, which means I had the cash withdrawn from my account at the first day.

 

[scylla]

Thanks!

Another question - you mention cheques - does that mean the last month's rent gets only cashed during the last month (i.e. you actually have that cash at your disposal until then)?

No - typically the last month's rent is cashed immediately and then held as a deposit. You need to have enough to cover first and last at a minimum.

 

[christa1]

Thank you,

In that case how are landlord's expenses handled if they need to touch some things up after the end of the lease? Just curious.

 

[mahi2020]

in gta they rent out property worth 600CAD for 1400CAD ....after 1 yr lease....they spend 3-5% of their profits on renovation.

 

[canuck78]

Thank you,

In that case how are landlord's expenses handled if they need to touch some things up after the end of the lease? Just curious.

You are expected to leave the apartment as you found in minus some wear and tear. You either agree to pay if there are damages that you caused above and beyond normal wear or your landlord can take you to small claims court or landlord/tenant board.

 

[russ6970]

Wow, that is so different from Scotland, where we pay 2 months rent up front. One of the months is a deposit and held in a 3rd party account. If landlord agree's that there is no damage, the money gets refunded to the renter from the 3rd party. If there is an issue the 3rd party steps in and mediates to find a settlement between the landlord and the renter.

 

[canuck78]

Wow, that is so different from Scotland, where we pay 2 months rent up front. One of the months is a deposit and held in a 3rd party account. If landlord agree's that there is no damage, the money gets refunded to the renter from the 3rd party. If there is an issue the 3rd party steps in and mediates to find a settlement between the landlord and the renter.

A security deposit is pretty common throughout the world. Not sure the legal reason why we don't have the option. Expect that you may be asked to do a credit check or provide proof of employment. In he case of really competitive rental markets you may have to offer more months in advance if you don't have any credit history. A sublet may be another way to get around the issue.