Rent paid in advance covers a particular rental period, such as the first month, while a deposit is security for obligations such as unpaid rent or damage beyond normal wear and tear. They should be listed separately in the tenancy agreement, with the payment dates and amounts clearly stated. A deposit is generally returned at the end of the tenancy, subject to any lawful deductions, whereas advance rent is normally applied to the period it covers. If there is a disagreement, the RTB’s dispute resolution process can determine the issue based on the tenancy’s facts.