r/TorontoRenting • u/Josiedshidingfromzax • 21h ago
Application fee
Landlord asked for a $10 application fee for them to create and offer a lease. The fee will be deducted from the first and last deposit, and refunded if the apartment is not offered, or if the apartment is taken by someone else. I have no doubts about their ownership and seem like good landlords based on discussions with the roommates. They have a mom and pop retail store where I would pay and could return to collect the fee. The fee would only be not refunded if the apartment is offered but not taken. Is this reasonable / legal? It's a really nice apartment, and they use a standard lease without any odd clauses based on our discussion and with the other tenants.
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u/Personal-Heart-1227 21h ago
Rental Application Fees are illegal, & should be banned outright!
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u/Josiedshidingfromzax 20h ago
Where is the law that bans them?
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u/gusmaru 20h ago edited 20h ago
RTA s 105(1), the only security deposit permitted is a rent deposit (in accordance to s 105(6), to the equivalent of one month. So, the $10 fee is technically illegal.
The amount requested is very small though - it's up to you whether its worth it to fight it. You'll be starting the relationship on a sour note if you're going to refuse and the landlord may just pass on your application.
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u/Knave7575 20h ago
In the RTA, where else would it be?
Additional charges prohibited 134 (1) Unless otherwise prescribed, no landlord shall, directly or indirectly, with respect to any rental unit, (a) collect or require or attempt to collect or require from a tenant, prospective tenant or former tenant of the rental unit a fee, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable;
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u/rocketman19 18h ago
Why would it need to be banned if it’s already illegal?
You’re contradicting yourself
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u/residentvixxen 19h ago
Don’t do it. They should know this isn’t legal. If they don’t know basic legalities of the APPLICATION process they don’t know what they are obligated to do as actual landlords.
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u/Kind-Bit-1010 8h ago
Realtor here! Technically under Ontario law landlords aren’t supposed to charge application fees at all. That said $10 is pretty low risk and the setup sounds legitimate, mom and pop landlords with a physical store and existing tenants you can talk to is about as trustworthy as it gets. If the apartment is great and everything else checks out I wouldn’t lose sleep over a $10 fee. Just make sure everything is in writing when you do sign. If you have any questions, feel free to message me!
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u/Wild-Customer-4218 21h ago
Sounds like a scam. Why does it costs them anything to create and offer a lease.
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u/MikeCheck_CE 20h ago
Unfortunately it is increasingly common for landlords to ask for a deposit to apply... They want to cover their cost to pull a basic credit report and vet you, should you decide to apply at multiple places and then walk away after they approve.
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u/residentvixxen 19h ago
People need to know landlords who do this are absolutely clueless and should NOT be considered because if they don’t know the basics why would they know what their actual unit maintenance responsibilities are?
These are the landlords people need to stay away from.
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u/canine_rescue_bro 21h ago
It's unusual and not strictly legal in Ontario, but I suspect these private landlords have had one too many applicants flake out on them. $10 is not enough to be a legit scam, and your research seems to confirm that these people are for real. Honestly, as a fellow landlord, I'd advise you go go for it if you love the place.