- A tenant is responsible for damage they, their guests, or other occupants cause — whether wilful or negligent — but not for normal wear and tear.
- Landlords cannot use the last month's rent deposit for damage, and there is no legal damage deposit in Ontario.
- To recover damage costs, a landlord must claim through the Landlord and Tenant Board (an L2/T-style application during the tenancy, or within a year after it ends) — not by self-help.
- Normal wear and tear (faded paint, minor carpet wear, small nail holes) is the landlord's cost, not the tenant's.
- Good move-in and move-out documentation — dated photos and a condition report — decides most damage disputes.
The Short Answer
Yes — an Ontario tenant is responsible for undue damage they, their guests, or other occupants cause, whether deliberately or through negligence. But a landlord cannot charge for normal wear and tear, cannot keep the last month's rent deposit for damage, and cannot simply invoice and deduct — there is no legal damage deposit in Ontario. To recover the cost, the landlord must claim through the Landlord and Tenant Board and prove both the damage and its reasonable cost. Our landlord and tenant lawyers handle damage claims and defences on both sides.
Damage vs. Normal Wear and Tear
| Normal Wear and Tear (Landlord's Cost) | Damage (Tenant May Be Liable) |
|---|---|
| Faded or lightly scuffed paint | Large holes, unapproved paint colours, graffiti |
| Minor carpet wear in walkways | Burns, deep stains, pet-shredded carpet |
| Small nail holes from pictures | Broken doors, cabinets, or fixtures |
| Loose hinges or worn seals over time | Water damage from neglect, broken windows |
The question is whether the deterioration is the natural result of ordinary living (wear and tear) or the result of misuse, neglect, or a deliberate act (damage). Age and expected lifespan of the item matter too.
Why You Cannot Just Keep a Deposit
Ontario has no damage deposit. The only rent-type deposit allowed is the last month's rent deposit, and it can only be applied to the last month's rent. A landlord who withholds the LMR deposit for alleged damage — or who collected a “damage deposit” in the first place — is offside and can be ordered to return the money.
How a Landlord Claims for Damage
The proper route is an application to the Landlord and Tenant Board. During the tenancy, a landlord can seek compensation for damage (sometimes paired with an N5). After the tenancy ends, the landlord generally has up to one year to apply for compensation for damage. In every case the landlord must prove the damage occurred, that the tenant is responsible, and that the amount claimed is reasonable.
Claiming During vs. After the Tenancy
- During the tenancy: a damage claim can accompany an N5 or be brought as a compensation application
- After the tenancy: the landlord generally has up to one year to apply to the Board for compensation for damage
- Missed the window? Time limits are strict — a late claim may be barred
The Evidence That Decides It
- Dated move-in photos and a signed condition report
- Dated move-out photos showing the change
- Repair invoices or quotes demonstrating reasonable cost
- Consideration of the item's age and remaining useful life (to avoid charging new-for-old)
If You Are Being Charged for Damage
- Ask for specifics — what is claimed, and the invoices behind it
- Compare against your own move-in/move-out photos
- Push back on wear-and-tear items and on new-for-old pricing
- Remember: the landlord must prove it at the Board — you do not have to simply accept a deduction
What Landlords Should Get Right
- Document unit condition at move-in and move-out with dated photos
- Claim through the Board — never self-help by keeping deposits
- Charge reasonable cost, accounting for the item's age
- Apply within the one-year window after the tenancy ends
Common Mistakes
The last month's rent deposit can only be applied to the last month's rent — never to damage.
Billing the full price of a new replacement for a worn, aged item is routinely reduced by the Board.
Without dated before-and-after evidence, damage claims (and defences) are hard to prove.
A landlord who waits too long after the tenancy ends can lose the right to claim.
Dealing with a damage dispute from either side? Call our Toronto landlord and tenant team at 416-274-2222 for a free consultation.
Frequently Asked Questions
Yes — a tenant is responsible for undue damage to the unit or building caused wilfully or negligently by the tenant, an occupant, or a guest. But the landlord cannot charge for normal wear and tear, and must claim the cost through the proper process rather than simply keeping money.
Normal wear and tear is the gradual, expected deterioration from ordinary living — faded paint, lightly worn carpet in traffic areas, small nail holes from hanging pictures. Damage is beyond that: holes in walls, broken fixtures, deep stains, pet destruction, or anything caused by misuse or neglect. Landlords bear wear and tear; tenants bear damage.
No. The last month's rent deposit can only be applied to the final month's rent. It cannot be used for damage or cleaning. A landlord who wants to recover damage costs must make a separate claim.
No. Ontario law does not allow damage deposits, security deposits, cleaning deposits, or pet deposits. If a landlord collected one, it can be ordered returned.
By applying to the Landlord and Tenant Board. During the tenancy the landlord can apply for compensation for damage; after the tenancy ends, the landlord generally has up to one year to apply to the Board for compensation. The landlord must prove the damage and its reasonable cost.
There are time limits. A landlord generally must bring a Board application for damage within one year of the tenancy ending. Missing that window can bar the claim, though other avenues may exist in limited circumstances. Timing matters for both sides.
Dated move-in and move-out photos, a signed condition report, repair invoices or quotes showing reasonable cost, and communications about the issue. The party with clear, dated documentation almost always has the advantage.
Not necessarily. The Board considers the age and condition of the item — you generally should not be charged the full price of a brand-new replacement for something that was already near the end of its useful life (this is often called betterment or depreciation). Reasonable, not inflated, cost is the standard.