The Residential Tenancies Act does not permit the charging or collection of a last month’s rent deposit after the commencement of the tenancy. Section 106(1) of the Act states that, “a landlord may require a tenant to pay a rent deposit with respect to a tenancy if the landlord does so on or before entering into the tenancy agreement.” Even if an existing tenant were to “agree” to pay a LMR deposit, the Act does not allow contracting away one’s rights, so both the Landlord and Tenant Board and the Rental Housing Enforcement Unit would consider the payment to be in contravention of the Act under S. 234(d): 234. A person is guilty of an offence if the person, (d) requires or receives a security deposit from a tenant contrary to section 105. It is likely that charging LMR mid-agreement will result in the landlord being fined.