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Residential TradingCondominium LeasingONEASY

An owner leasing her condominium unit for $2,600 a month wants to collect last month's rent and a separate damage deposit from the tenant. Under the Residential Tenancies Act, 2006, what may she collect?

Correct Answer

C) Only a rent deposit of one month's rent, $2,600, for the last month

Section 105(1) of the Residential Tenancies Act, 2006 says the only security deposit a landlord may collect is a rent deposit under s. 106. Section 106(2) caps it at the lesser of one rent period and one month, here $2,600, and s. 106(10) requires it to be applied to the last rent period.

Answer Options
A
Last month's rent plus a damage deposit of up to one month's rent
B
Up to two months' rent, split between first and last month
C
Only a rent deposit of one month's rent, $2,600, for the last month
D
Any deposit amount the tenant agrees to in the signed lease

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Key Terms

rent depositRTA section 106damage depositlast month's rent
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