Security deposits in Québec: what a landlord can ask for

In Québec, a landlord cannot require a security deposit when a residential lease is signed. Nor can they require postdated cheques or more than one month's rent in advance. These rules, set out in article 1904 of the Civil Code, often surprise landlords coming from other provinces, where deposits are standard.

Here is what is allowed, what is not, and how to protect yourself against unpaid rent and damage in other ways.

What article 1904 says

The lessor may only require advance payment of the first rent instalment, usually the first month. If the rent term exceeds one month, for example rent payable every two months, the lessor can require that first term, but no instalment may exceed one month's rent.

The lessor cannot require any sum of money other than rent, whether as a deposit or otherwise. This covers security deposits, a prepaid "last month" and file fees charged to rent the unit. The lessor also cannot require rent to be paid by postdated cheques or any other postdated instrument.

A lease clause requiring a deposit has no effect. A tenant who paid a sum demanded illegally can ask the Tribunal administratif du logement to order it refunded.

The "voluntary" deposit: a grey area

Case law recognizes that a tenant can waive this protection under certain conditions, for example when the tenant offers a deposit on their own, freely and without pressure. The Régie du logement, now the TAL, has however stressed that the waiver must be clear and unequivocal, and that the circumstances must not suggest the tenant paid for fear of losing the unit.

In practice, in a market with many applicants, it is hard to show that a deposit was truly voluntary. Prudence dictates not asking for one and not accepting one as a condition of renting.

Pre-authorized debit and other payment methods

Nothing prevents you from offering convenient payment methods: Interac e-Transfer, pre-authorized debit, direct deposit. What is prohibited is imposing them in the form of postdated instruments. A pre-authorized debit that the tenant freely agrees to, and can revoke, makes management easier for everyone. Present it as an option, not a requirement.

Protecting yourself in other ways

A landlord's real protection is good screening. A credit check, carried out with the applicant's written consent, references from previous landlords and confirmation of ability to pay reduce risk far more than a one-month deposit. Our article on screening tenants explains how to do it within the rules.

For damage, document the condition of the unit at move-in: dated photos, video and a room-by-room description signed by both parties. At move-out, this comparison lets you claim damage beyond normal wear and tear. Also ask for proof of the tenant's civil liability insurance: it is not a deposit, and it is valuable protection in case of water damage or fire.

Finally, a guarantor, meaning a person who undertakes to pay if the tenant defaults, is worth considering with an applicant who has no credit history. It must be set out in writing.

A concrete example

A Plateau landlord requires a $1,500 deposit on top of the first month, "refundable at move-out." The tenant signs, pays, then looks into their rights. A few months later, they file with the TAL and recover the money, plus interest. The landlord had no real protection, only a dispute. With a credit check, a detailed move-in inspection and proof of insurance, they would have been better protected, and fully within the law.

FAQ

Can I ask for first and last month's rent?

No. Only the first rent instalment, usually the first month, can be required in advance. A prepaid "last month" is a prohibited form of deposit.

Can I require a deposit for keys or a garage remote?

The law prohibits requiring any sum other than rent, whether as a deposit or otherwise. Be careful: document the handover of keys and access devices in the move-in inspection instead.

Can a tenant offer a deposit on their own?

Case law has sometimes accepted it when the offer was clearly free and voluntary. It is hard to prove, however, and a sum perceived as a condition of renting may have to be refunded.

Do these rules apply to a furnished condo rental?

Yes. Article 1904 applies to the lease of a dwelling, furnished or not, including a condo rented out by an individual owner.

What can I do if the tenant does not pay?

Act quickly: a written reminder, a payment arrangement, then an application to the TAL for recovery or lease termination when the tenant is more than three weeks late. Rigorous payment management keeps the situation from getting worse.

Renting out a condo and want to reduce your risk without breaking the law? Contact us: our team answers within 4 business hours.

General information: rules and circumstances may vary. Check official sources or consult a professional about your situation.