Montserrat v Li

Tenant wins · Toronto · 2025-08-06

Adjudicator

Dale Whitmore

Dispute

Illegal Charge/Rent Deposit

Amount

<$5K

Landlord

X.H.D.L.

Tenant

M.M., R.J.

What happened

The Tenants applied for the return of a rent deposit after moving out following an N11 agreement. The Landlord withheld the $2,400.00 deposit, claiming the parties had agreed via email that it would be used as a re-listing fee for allowing early termination of the tenancy. The Tenants argued the agreement allowed them to find a replacement tenant instead and that the Landlord breached this agreement. The LTB member determined that under the Residential Tenancies Act, a rent deposit can only be used for the last month's rent, regardless of any other agreement between the parties.

The ruling

The Landlord is ordered to pay the Tenants $2,448.00. This amount includes the return of the $2,400.00 rent deposit and the $48.00 application filing fee. The claim for interest on the deposit was denied because the tenancy lasted less than one year. If the Landlord fails to pay by August 17, 2025, simple interest of 4% per year will accrue on the outstanding balance.