Can I use Small Claims Court to get my rental security deposit back in Ontario?

In Ontario, the residential tenancy system works differently from many other provinces: landlords can only collect a last month's rent deposit, not a separate security or damage deposit. Disputes about last month's rent deposits — whether the landlord must return it or can apply it against unpaid rent — are generally handled by the Landlord and Tenant Board (LTB), not Small Claims Court.

However, Small Claims Court can become relevant in landlord-tenant matters when the dispute falls outside the LTB's jurisdiction. For example, if a landlord is seeking compensation for damage to a unit beyond ordinary wear and tear that exceeds the LTB's monetary jurisdiction, they may need to go to Small Claims Court. Commercial tenancy disputes are also outside the LTB's scope and can proceed in Small Claims Court if the amount is within the limit.

If you are a residential tenant trying to recover an illegally taken deposit (which would be an illegal charge under the Residential Tenancies Act), you would typically file with the LTB, not Small Claims Court. Determining the right forum is important because filing in the wrong place wastes your filing fee and time.