1. What Is Ontario Rent Deposit Interest?

In Ontario, landlords are required to pay interest on rent deposits held for tenants. The interest rate is typically equal to the rent increase guideline set by the provincial government each year.

2. How Does The Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( Deposit \) — The amount of rent deposit held by the landlord ($)
• \( Rate \) — The applicable interest rate (expressed as a decimal)

Explanation: This calculation determines how much interest the landlord owes the tenant on their rent deposit for a given period.

3. Importance Of Calculating Rent Deposit Interest

Details: Proper calculation of rent deposit interest ensures compliance with Ontario's Residential Tenancies Act and protects both tenant and landlord rights regarding security deposits.

4. Using The Calculator

Tips: Enter the deposit amount in dollars and the interest rate as a decimal (e.g., 0.012 for 1.2%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current interest rate for rent deposits in Ontario?
A: The interest rate is typically equal to the annual rent increase guideline, which varies each year. Check the Ontario government website for the current rate.

Q2: When must landlords pay interest on rent deposits?
A: Landlords must pay interest annually or when the tenancy ends, whichever comes first.

Q3: Can the interest be applied toward rent?
A: Yes, with mutual agreement, the interest can be applied toward rent payments instead of being paid out directly.

Q4: Is interest payable on last month's rent deposit?
A: Yes, Ontario law requires landlords to pay interest on last month's rent deposits.

Q5: What happens if a landlord doesn't pay the required interest?
A: Tenants can file an application with the Landlord and Tenant Board to seek payment of the owed interest.