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Housing |  Deposits are illegal, but required by some owners

Housing | Deposits are illegal, but required by some owners

When we get close to 1Eh In July, owners did not hesitate to request an illegal deposit on classified advertising platforms. With the housing crisis, some tenants feel forced to pay this amount to be able to find housing, which is condemned by housing committees in Montreal.


Journalism It counted 59 housing offers where the landlords clearly made illegal demands on tenants. To achieve this result, we searched for the top Montreal deals on Kijiji and Facebook Marketplace during the week of June 10.

On Facebook Marketplace, a two-bedroom, one-bathroom apartment is renting for $2,095 a month. The apartment is very modern and located on the Mont Royal plateau. The accommodation includes appliances. Required deposit: $1,500.

A 5 1/2 apartment for rent in Saint Laurent at a cost of $2,500 per month was posted on Facebook Marketplace. You notice that the counters are a bit dated, but the rest of the apartment is modern Journalism on the pictures. The property is located close to a few bus lines, but not the metro. “Deposit Required” is indicated in black and white on the accommodation offer.

These are just a few examples of requests submitted by owners on home listing sites. Four of the five owners contacted about this matter did not respond to messages sent. One of them said she did not know it was illegal and changed the offer shortly after.

Payment for housing insurance

“It's unbelievable how the club owners get the short end of the stick,” laments Benjamin Aher. The 55-year-old, who works at the Port of Montreal, says he had to pay three months' rent in advance in 2023 to get his residence, which he has occupied since last year. “It cost me almost $10,000,” he says.

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For him, paying this deposit was a way to guarantee his housing.

If I don't do it, the guy after me will.

Benjamin Aher

Requiring a deposit to guarantee the safety of a residence is illegal in Quebec. But it's a licensed practice in the rest of Canada and the United States, notes the Société des Propriétés du Québec (CORPIQ). However, tenants have the right to make a voluntary deposit, if they deem it necessary.

However, the landlord can request that the first month's rent be paid in advance, once the lease is signed.

A source of inequality

” [Les locataires] “You become desperate to get an apartment, so you will consciously put aside the fact that this is an illegal request and agree to pay,” notes Angel Saint-Veilleux, who works on the housing committee POPIR, which defends the interests of tenants in the Saint-Veilleux neighborhood. Henry.

“People hoping to find housing realize very quickly that it means paying a deposit or not getting housing,” says Marguerite Van Noten, spokeswoman for the Guinness Housing Commission in Côte-des-Neiges. The latter indicates an increase in this type of practice among its owners.

It is not uncommon for tenants to have to pay three months' rent in advance to sign a lease.

Margaret Van Noten, speaker on the Genesis Housing Committee

Margaret Van Noten believes that voluntary deposits are a “source of inequality”, as some tenants can afford to make a voluntary deposit, while others cannot.

This is a reality that hits newcomers harder, who often have no one to guarantee them or no credit history.

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So these newcomers must find or pay a deposit, explains MH Julien Delange, a lawyer specializing in housing law. “They find themselves with more than one choice,” he explains.

MH Delangie has not noticed an increase in this phenomenon among its clients. “It's rare, unfortunately, for people to go see a lawyer afterward,” he said. He points out that many tenants are afraid to enforce their rights, for fear of tarnishing their image in the eyes of future landlords.

Legalization of deposits

Asked about the deposits required to rent housing, CORPIQ said “it does not recommend that its members ask for one from prospective tenants.”

However, CORPIQ specifies that a deposit can allow a tenant to “reassure” their landlord, in the event that the tenant does not have a credit history or if the landlord has concerns about the deterioration of the accommodation.

For an Association of Owners of Quebec (APQ), the deposit must be legal in Quebec. “The problem is that the law doesn’t allow it,” says Martin Messier, president of APQ. The latter believes that if a tenant needs to refund a deposit, he can do so by contacting the Administrative Housing Court.

He explains that the reasons that prompt the homeowner to demand these amounts are multiple, but he specifically mentions negligence and damage caused by animals.