Landlord Guide to Renting in Ontario

Ontario requires landlords to use the Ontario Standard Lease (Form 2229E) for most residential tenancies entered into on or after April 30, 2018. The standard lease captures key terms mandated by the RTA and helps ensure both parties understand their rights and obligations.

• Landlords must use the Ontario Standard Lease (Form 2229E) for most residential tenancies (O. Reg. 9/18)
• If a landlord does not provide a standard lease within 21 days of a tenant's written request, the tenant may withhold one month's rent (RTA, s. 12.1)
• Any clause in a lease that conflicts with the RTA is void and unenforceable (RTA, s. 4)
• Both fixed-term and month-to-month tenancies are recognized; a fixed-term tenancy automatically becomes month-to-month at expiry unless the tenant gives notice to terminate (RTA, s. 38)

Ontario's RTA allows landlords to collect a rent deposit (commonly called last month's rent) but prohibits traditional security or damage deposits. The deposit may only be applied to the last month of the tenancy.

• A landlord may collect a rent deposit of up to one month's rent (or one week's rent for weekly tenancies) (RTA, s. 106(1))
• The rent deposit may only be applied to the last period of the tenancy—it cannot be used for damage repairs (RTA, s. 106(10))
• Damage deposits, key deposits beyond the actual cost of replacement keys, and additional deposits are prohibited (RTA, s. 105, s. 107)
• Annual interest must be paid on the rent deposit at a rate equal to the annual rent increase guideline (RTA, s. 106(6))

Ontario landlords must provide tenants with certain information before or at the start of the tenancy. The Ontario Standard Lease captures many required disclosures, but additional obligations apply.

• The landlord must provide the tenant with a copy of the Ontario Standard Lease and the information guide published by the LTB
• Contact information for the landlord or authorized property manager must be provided (RTA, s. 12)
• If the unit was previously used for the production of illegal drugs and the landlord is aware of this, disclosure is required
• The landlord must disclose whether rent is subject to the annual guideline increase or is exempt (e.g., units first occupied after November 15, 2018)

Rent is due on the date specified in the lease. Ontario offers tenants certain protections around late fees and post-dated cheques, and landlords must follow prescribed procedures when rent is unpaid.

• Rent is due on the date specified in the tenancy agreement (RTA, s. 2(1))
• Landlords cannot require tenants to pay rent by post-dated cheques or any other automatic payment method (RTA, s. 108)
• Late fees or penalties for overdue rent are not permitted under the RTA (RTA, s. 134(3))
• If rent is unpaid, the landlord may serve a Notice to End a Tenancy Early for Non-payment of Rent (N4) with a 14-day notice period (RTA, s. 59)

Ontario landlords have a statutory obligation to maintain the rental unit in a good state of repair and comply with all health, safety, housing, and maintenance standards. The RTA and applicable municipal property standards bylaws set the minimum requirements.

• The landlord must maintain the rental unit and residential complex in a good state of repair, fit for habitation, and in compliance with all applicable standards (RTA, s. 20(1))
• This obligation applies even if the tenant was aware of a state of non-repair before entering into the tenancy (RTA, s. 20(2))
• Tenants may apply to the LTB for a maintenance order or rent abatement if the landlord fails to maintain the unit
• Municipal property standards officers may also issue orders requiring landlords to address deficiencies

Ontario law requires landlords to provide written notice before entering a rental unit for non-emergency purposes. The RTA specifies the notice period, permitted times, and valid reasons for entry.

• At least 24 hours' written notice is required for most non-emergency entry (RTA, s. 27(1))
• Entry must be between 8 a.m. and 8 p.m. unless the tenant agrees otherwise (RTA, s. 27(2))
• Permitted reasons include inspections, repairs, showings to prospective tenants (only during the final 60 days of a tenancy), and showings to prospective purchasers or insurance agents
• Emergency entry (e.g., fire, flood, risk to safety) is permitted without notice (RTA, s. 26(1))

Ontario's rent increase framework is one of the most regulated in Canada. The provincial government publishes an annual rent increase guideline, and most rent increases are capped at this percentage. Units first occupied after November 15, 2018 are exempt from the guideline.

• Rent may only be increased once every 12 months (RTA, s. 119(1))
• The maximum annual rent increase for most units is the guideline percentage published by the Ontario government, based on the Ontario Consumer Price Index (RTA, s. 120)
• At least 90 days' written notice is required before a rent increase takes effect, using the Notice of Rent Increase (N1) form (RTA, s. 116(1))
• Units in buildings first occupied for residential purposes on or after November 15, 2018 are exempt from the rent increase guideline (RTA, s. 6.1)

The RTA prescribes specific notice periods for ending a residential tenancy in Ontario. Notice must be in writing on the appropriate LTB form, and the required period depends on the type of tenancy and reason for termination.

• Tenant ending a month-to-month tenancy: at least 60 days' written notice, terminating on the last day of a rental period (RTA, s. 44(2))
• Landlord ending a tenancy for personal use or purchaser's use: at least 60 days' written notice using the N12 form; one month's rent compensation must be paid (RTA, s. 48, s. 49)
• Nonpayment of rent: 14 days' written notice using the N4 form (RTA, s. 59)
• Cause (illegal activity, serious impairment of safety): 10–20 days' written notice depending on the specific ground (RTA, ss. 60–66)

All evictions in Ontario must be ordered by the Landlord and Tenant Board. A landlord cannot evict a tenant without an LTB order, and the order must be enforced by the Court Enforcement Office (Sheriff). Self-help evictions are illegal.

• Serve the appropriate notice to end the tenancy on the required LTB form
• If the tenant does not vacate, file an application with the Landlord and Tenant Board for an order terminating the tenancy and evicting the tenant
• The LTB will schedule a hearing; both parties may present evidence and arguments
• If the LTB grants an eviction order and the tenant does not vacate, the landlord must file the order with the Court Enforcement Office (Sheriff) for enforcement (RTA, s. 85)

Because Ontario only permits a rent deposit (last month's rent), there is no separate security deposit return process. The rent deposit is applied to the final rental period. Damage claims must be pursued separately through the LTB.

• The rent deposit is applied to the last month (or last week) of the tenancy automatically (RTA, s. 106(10))
• Interest on the rent deposit, at the annual guideline rate, must be credited each year and applied when the deposit is used
• Landlords cannot deduct damage costs from the rent deposit; damage claims must be filed with the LTB within one year of the tenancy ending (RTA, s. 89(1))
• The LTB may order the tenant to pay for damage beyond normal wear and tear if the landlord proves the claim