Last verified: July 6, 2026 · Official sources: each province's Residential Tenancies Act / equivalent (linked below) — always confirm your province's current rules, since deposit and insurance rules vary sharply and change over time.
General information, not legal advice. Landlord-tenant law is provincial — for a dispute or anything specific to your lease, contact your province's tenancy authority or a tenant-rights organization.
Deposit rules vary a lot more than most newcomers expect
This is one of the areas where assuming "it works the same everywhere" will cost you money or lead to a dispute. As of this writing:
- Ontario: landlords can charge a last month's rent deposit (up to one month's rent) — applied only to your final month, not damages — and it must accrue interest, paid to you annually. Ontario does not allow a separate damage deposit.
- British Columbia: there is no "last month's rent" deposit — instead you pay a security deposit (up to half a month's rent) held against damage/unpaid rent, plus a separate pet damage deposit if you have a pet.
- Alberta: deposits are capped at one month's rent, and there's no province-wide rent control, unlike Ontario.
- Quebec: landlords are prohibited from requesting any deposit at all (first/last month's rent, damage deposit) under the Civil Code of Quebec — if someone asks you for one, that's not allowed.
Because these rules differ so much, confirm the current rule for your specific province before you sign anything — see your province's Residential Tenancies Act (or Quebec's Tribunal administratif du logement) linked below.
Tenant (renter's) insurance: what it actually covers
A standard tenant insurance policy typically bundles three things:
- Personal property — your belongings, against fire, theft, water damage, and similar events.
- Liability — if someone is injured in your unit, or you accidentally cause damage (e.g., a kitchen fire that damages the building), this covers you.
- Additional living expenses — temporary accommodation costs if your unit becomes unlivable (e.g., after a fire).
What it typically does not cover: pest infestations (bed bugs, rodents) are generally treated as a maintenance issue for the landlord/tenant to resolve, not an insurance claim, and most policies exclude major natural-disaster damage (check your specific policy).
Is tenant insurance mandatory?
Not by law in any province — but many landlords require it as a condition of your lease, and courts have generally upheld that clause as reasonable where it's included. Even where it's not required, it's worth having: without it, you personally cover the full cost of a fire, water damage, or a liability claim out of pocket.
Renting basics for a newcomer
- Budget guideline: aim for 30–35% of take-home pay on rent — Toronto and Vancouver run well above the national average, so budget accordingly (see Cost of Living by City).
- Where to look: major listing sites (Rentals.ca, PadMapper, Kijiji), and — often underrated — school-specific or newcomer-specific Facebook/community groups, which surface sublets and shares that never hit the big listing sites.
- Read the lease before you sign — know your province's Residential Tenancies Act basics (notice periods, what a landlord can and can't charge, your right to a written lease) before you commit.
Where this fits
This pairs with the settlement basics in First 90 Days and Cost of Living by City for budgeting your move.