Actually you quite lucky if the landlord is only asking for 1 months rent. Because of the crisis and unemployment many landlords are demanding 6 months plus an Aval. (rent guarantee given by the bank). That is about the time it takes to kick out someone.
Just a note when reading I suggest not paying the last months rent in lue of the deposit for the simple reason once your gone the landlord has no incentive to return it,heard too many horror stories about tenants losing their deposits.
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Be Canadian Eh, that's for all you American out there:)