In the context of landlord and tenants, it is usually a cheque dated for the day rent is due for the remainder of the tenancy agreement.
The reason for post-dated cheques is that a cheque will be incapable of being cashed until the date of the cheque.
However, it is illegal for a landlord in Ontario to demand a security deposit, for potential damages to a rental unit.
Due to this, many landlords have tried to use creative ways to come up with charges to get around the rule for security deposits.
However, the Ontario Residential Tenancies Act prohibits any other additional charges. However, it cannot be more than half the one month’s rent.
In Ontario, for example, a landlord can demand a rent deposit equal to one month’s rent, or the rent for one rental period, whichever is less.
If the rent payments are made weekly, the deposit cannot be more than one week’s rent.