Humber/Ontario Real Estate Course 1 Exam Practice 2025 - Free Real Estate Course 1 Practice Questions and Study Guide

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Question: 1 / 890

How should a residential landlord apply a rent deposit received from a new tenant?

Apply it to the first month's rent.

Apply it to the last month's rent.

When a residential landlord receives a rent deposit from a new tenant, they should apply it to the last month's rent. This is the correct practice according to residential tenancy laws in Ontario. By applying the rent deposit to the last month's rent, the landlord ensures that the tenant has already paid for their final month in advance, which can help avoid any complications or disputes when the tenancy comes to an end. It also provides a level of security for the landlord in case the tenant fails to pay their rent in the final month.

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Use it as a security deposit alongside the rent deposit.

Provide a receipt only if requested.

Withhold it without providing a receipt.

Apply it to any potential damages upon lease termination.

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