young v lee

Tenant wins · Toronto · 2025-06-18

Adjudicator

Kyle Anderson

Dispute

Illegal Rent Deposit

Notice

Personal use (N12)

Amount

<$5K

Landlord

Y.F.L., P.Y.L.

Tenant

R.D.Y.

What happened

The Tenant filed an application alleging the Landlord illegally retained their last month's rent deposit. The tenancy ended after the Landlord issued an N12 notice, and the parties agreed to a $4,500 compensation package for the Tenant to vacate early. The Landlord argued this compensation included the rent deposit. The Tenant disputed this, stating the deposit was separate. The Board sided with the Tenant, finding their testimony credible and that compensation for early termination is distinct from the return of a security deposit.

The ruling

The Landlord is ordered to pay the Tenant $1,776.12. This amount consists of the original last month's rent deposit of $1,387.00, interest of $341.12, and the $48.00 application filing fee. The Board ruled that the $4,500 compensation paid to the Tenant for early termination was separate from the deposit, which the Landlord illegally retained.