Are you looking for a new apartment and being asked for a "security deposit" in addition to the first month's rent? Be careful, this practice is very often illegal in Quebec. Here's what you really need to know, explained simply.

What is a security deposit, and is it legal?

A security deposit is an amount of money requested by the landlord to cover unforeseen circumstances. In Quebec, it is illegal for the landlord to require it when signing the lease. They can only request the first month's rent in advance, and nothing more.

Can you still pay a deposit? What if I offer to provide one myself?

Yes..., but only if the tenant takes the initiative, alone and without pressure. Here's what must absolutely be respected :

The circumstances are exceptional: for example, the tenant has no credit history, no stable employment, or an imperfect record, and they offer to pay a security deposit spontaneously to reassure the landlord and/or strengthen their application.

The spontaneous initiative must come from the tenant and not be suggested or required by the landlord, directly or indirectly.

Acceptance by the landlord must be clear, unequivocal, and unambiguous.

If the deposit is paid voluntarily and without pressure, the deposit is legal, but the tenant always has the right to a refund if the lease ends without unpaid rent or damage to the dwelling.

In the event of a dispute, it is up to the landlord to prove that the tenant offered this deposit freely, without any pressure on their part, as in many cases, the TAL has found that this deposit was not made freely, at the tenant's initiative Immeubles À côté inc. v. Mirzica, the TAL (formerly the Régie du logement) concluded that the tenant had freely and voluntarily paid the security deposit. Each case is evaluated according to the circumstances.

What should I do if I have already paid an illegal deposit?

The tenant can request reimbursement of the deposit from the landlord, during the lease or at the end of the lease.

If the landlord refuses to reimburse it, the tenant can apply to the TAL to obtain reimbursement.

If damage is caused to the dwelling when the tenant moves out, the landlord must apply to the TAL to obtain compensation and have the right to retain the security deposit.

In summary :

NO, a landlord cannot require a security deposit.

YES, the tenant must only pay the first month's rent when signing the lease.

However, the tenant can VOLUNTARILY offer a security deposit to strengthen their application and/or reassure the landlord about poor credit history or other exceptional circumstances.

1 Administrative Housing Tribunal (TAL)

Sources :

Civil Code of Quebec : art. 1699, 1904.

Ref : Immeubles À côté inc. v. Mirzica, 2020 QCRDL 4495 (CanLII)

To read the full judgment : https://canlii.ca/t/j57c7