Does the Landlord pay interest on last month rent deposit?

[Loulou79]

Hello

I live in Mississauga.

I have just read the below, and my lease expires in June. My landlord has not disclosed some defects in the unit so I want to be prepared:

GUIDELINE AND RENT DEPOSITS

A landlord can collect a rent deposit from a new tenant on or before the start of a new tenancy. The rent deposit can only be used as the rent payment for the last month or week before the tenant moves out. The landlord must pay the tenant interest on the rent deposit every year.

Under the RTA, the interest rate is the same as the Rent Increase Guideline.

Do they pay it every year?

I know its illegal, but I gave them 5 month rent + plus last month in advance. should not they pay me interest on the 6 months?

Thanks

 

[Pippin]

That is so unfair to charge that many months of rent in advance. If the landlord has done that I don't know how likely he would be to pay interest, but I hope so.

 

[Loulou79]

Thank you 4 ur reply Pippin, I had to pay that amount to be accepted. I did not have a credit history back then.

 

[canuck_in_uk]

The landlord must pay interest only on the deposit. The 5 months of advance rent isn't be considered part of the deposit, so the landlord doesn't have to pay interest on it.

 

[Loulou79]

Thanks Canuck. I read the contract and that was covered. No interest.

Thanks

 

[mayciegirl]

I think what you have agreed upon renting is the one your paying. They are not allowed to pay interest on the last month rent deposit. It should be fixed, otherwise there are things that has been damaged while you are renting.