ImmoMulti — a direct buyer of multi-unit properties on the North Shore — regularly works with plex landlords who discover, sometimes too late, that in Quebec the security deposit is simply banned. Unlike Ontario, the United States or most other provinces, a Quebec landlord cannot require a security deposit, last month's rent in advance, or a guarantee cheque for keys. This guide walks through what you can and cannot ask a tenant when signing the lease, so you stay strictly compliant with the Civil Code of Quebec and the Administrative Housing Tribunal (TAT).
Why are security deposits banned in Quebec?
The security deposit is banned in Quebec for all types of rental housing, including duplexes, triplexes and quadruplexes. The Civil Code of Quebec strictly limits the amounts a landlord can require from a tenant. The principle is simple: when signing the lease, you cannot require any amount other than the first month's rent, and only as of the first day of the rental.
This rule protects tenants from accumulating advances that would make housing harder to access. A lease clause that provided for a security deposit or last month's rent payable in advance is without effect: writing it into the lease does not make it legal. The Administrative Housing Tribunal is very clear on this, as is Éducaloi.
Source: Éducaloi — Security deposit and TAT — Payment of rent.
What you CAN require from a tenant
As a plex landlord, you keep legitimate ways to secure a tenancy. The following are allowed:
- The first month's rent — payable as of the first day of the lease, never before.
- Solvency information — name, contact details, references from former landlords and consent to a credit check.
- A guarantor (surety) — a person who agrees to pay if the tenant defaults.
- Tenant's home insurance — you can require it as a lease condition and ask for proof.
- Payment by postdated cheques — you can propose it, but not impose it.
Key takeaways
- The first month's rent is the only payment due at signing.
- A guarantor and credit check are your best compliant tools.
- Requiring home insurance in the lease is legal and recommended.
What you can NOT require
The list of prohibited requests is longer than most landlords think. Ban these practices from your plex leases:
| Request | Allowed? | Why |
|---|---|---|
| Security deposit | No | No amount other than the 1st month is allowed. |
| Last month paid in advance | No | Banned rent advance (more than one month). |
| Mandatory postdated cheques | No | Cannot be imposed as a lease condition. |
| Deposit for keys / remote | No | Treated as a banned security deposit. |
| "Pet deposit" | No | No special deposit is allowed, even with a pet. |
| Lease / file-opening fees | No | No rental fee may be charged. |
Warning
Even if the tenant voluntarily agrees to pay a deposit or the last month, the amount remains illegal and the tenant can demand reimbursement. The tenant's consent does not validate a clause contrary to the law.
Legal alternatives to a deposit
The deposit ban does not leave you unprotected. Several compliant approaches genuinely reduce your rental risk:
- Rigorous tenant screening — a credit check, employment verification and calls to former landlords remain your best filters.
- A guarantor — especially useful for a young tenant or a newcomer with no credit history.
- Mandatory home insurance — a lease clause requiring liability insurance protects against many tenant-caused losses.
- A detailed condition report — done at move-in and move-out, with dated photos, to document any damage.
For a landlord weighing whether to keep a plex or sell it because the risk feels unmanageable, it also helps to know your options when a tenant causes damage.
Want to sell your plex without management headaches?ImmoMulti buys North Shore multi-unit properties directly — offer in 48 hours. →How to protect yourself against damage without a deposit
Without a security deposit, your protection comes from evidence. Document the condition of the unit at move-in (photos, video, signed condition report) and repeat the exercise at move-out. If a tenant causes damage beyond normal wear and tear, you can claim the cost of repairs — first amicably, then through the Administrative Housing Tribunal if needed.
The TAT always distinguishes normal wear and tear (the landlord's responsibility) from damage caused by negligence or abuse (the tenant's responsibility). The better documented your file, the more likely your claim succeeds. Also make sure to properly frame any pet-related clauses in your lease, another frequent source of disputes.
Common mistakes plex landlords make
- Writing a deposit into the lease "for peace of mind" — the clause is void and exposes you to damages.
- Requiring last month's rent in advance — one of the most common mistakes, and one of the easiest for a tenant to contest.
- Imposing postdated cheques — proposing is allowed, imposing is not.
- Asking for a deposit on keys or a garage remote — banned, even if refundable.
- Charging "file-opening fees" — no rental fee is allowed in Quebec.
A compliant lease from the start spares you costly disputes and preserves your building's value. If property management becomes a burden, note that a direct sale of your North Shore multiplex remains an option to recover your capital without the constraints of renting.
Sources: Administrative Housing Tribunal, Éducaloi, Civil Code of Quebec (LégisQuébec), Québec.ca — Renting a property. Informational content; does not constitute legal advice.
