Ontario Move-Out Inspections: Rent Deposits and Damage Claims

Keep the rent deposit separate from damage

The LTB's RTA guide states that the rent deposit cannot be used to repair damage. The rule does not change because the landlord has photographs, an invoice or a signed inspection form.

An inspection records condition. It can help support a compensation claim, but it does not convert money reserved for rent into security for repairs. The rent account and any damage claim should therefore show their different purposes clearly.

Damage is different from ordinary wear

The LTB distinguishes damage caused wilfully or negligently by a tenant, another occupant or a guest from normal wear and tear. Worn carpeting after years of normal use is not the same as an item damaged through misuse.

The age and previous condition of an item help put a new observation in context. A photograph of a worn surface at move-out, without context, does not by itself establish responsibility or the amount of compensation.

Build a record of the actual condition

Before taking interior photographs of an occupied rental unit, explain the purpose, intended use and disclosure, and obtain the tenant’s consent. A valid entry notice is not consent to photograph personal information. Any claimed statutory exception requires a specific legal basis. If occupation has ended but personal belongings or documents remain, assess the remaining personal information before taking images. Useful records can include dated move-in and move-out photographs, descriptions of the affected area, relevant communications and repair or replacement costs. Identify what is being compared and keep original records available.

Describe what is observed rather than presenting every mark as proven tenant damage. Evidence of the cause, the prior condition and the work required can matter as much as the final photograph. No inspection template guarantees an LTB result.

Give the tenant a clear breakdown of any disputed amount. Do not describe a damage estimate as a deduction already taken from the rent deposit. If work is not yet done, distinguish the estimate from an actual paid invoice.

The application depends on the tenancy's status

For a former tenant, the LTB's L10 process can include qualifying damage claims. Where the tenant remains in possession, different applications can apply; the LTB's rent-arrears guideline identifies L2 for claims such as damage. L1 is not a general form for adding a damage claim to rent arrears.

The correct procedure depends on the facts and relief sought. Current application instructions and qualified legal advice are appropriate where the route is uncertain.

Former-tenant claims have a filing deadline

The LTB states that an L10 application cannot be filed more than one year after the tenant moved out. Its brochure explains eligibility, service and evidence requirements, including providing damage evidence and repair or replacement costs.

The filing deadline is not permission to retain the rent deposit while deciding whether to claim. Nor does filing establish that the requested amount will be awarded.

Close the records without mixing obligations

The final rent record should identify application of the rent deposit and any interest still owing. Key-return and key-deposit records belong alongside it, while a disputed damage amount should be identified as a separate claim.

For future inspections, the goal is a clear condition history and lawful access arrangements. It is not a promise that all repair costs can be recovered from an outgoing tenant.

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