Ontario Residential Lease Agreements: What Every Tenant & Landlord Must Know

The Mandatory Standard Lease

The Ontario government's Standard Form of Lease applies to most private residential rentals — apartments, houses, condos, and secondary units. Co-ops, care homes, and social housing are among the exceptions.

If a landlord fails to provide a signed standard lease within 21 days of a written request, the tenant may withhold one month's rent until the lease is provided. If not provided within another 30 days, the tenant can keep that withheld rent.

Rent Deposit Rules

A landlord may collect a last month's rent deposit — but nothing more. Key rules:

• The deposit cannot exceed one month's rent (or one week's if the tenancy is weekly).
• A key deposit must be no more than the actual cost to replace the key.
• The landlord must pay annual interest on the deposit equal to the rent increase guideline for that year.
• No "damage deposit" or "cleaning deposit" is permitted — these are illegal in Ontario.

Rent Increase Rules (2024–2026)

Landlords must give 90 days' written notice before a rent increase using the proper N1 form. Increases above the guideline require an Above Guideline Increase (AGI) application to the LTB.

Pets and the No-Pet Clause

No-pet clauses are void and unenforceable in Ontario under the Residential Tenancies Act. A landlord cannot refuse to rent to someone because they have a pet, nor can they evict a tenant solely for having one. However, a tenant can still be held responsible for damage caused by their pet.

Subletting and Assignment

A tenant has the right to sublet (temporarily transfer) or assign(permanently transfer) their tenancy, but must get the landlord's written consent first.

• A landlord cannot unreasonably withhold consent to an assignment.
• If refused without good reason, the tenant can apply to the LTB or terminate the tenancy early.
• A landlord may charge a reasonable fee for reviewing an assignment application.

Void Clauses in a Lease

The following provisions are automatically void even if written into a lease and signed by the tenant:

• No-pet clauses
• Damage or cleaning deposits
• Waiver of any rights under the Residential Tenancies Act
• Requirement to use automatic rent payment methods exclusively
• Penalty clauses for breaking the lease early (beyond actual losses)

Lease Addendums

The standard lease includes an "Additional Terms" section. Landlords may add custom provisions here — but any term that conflicts with the RTA or a tenant's rights is void. Common valid addendums include parking rules, smoking policies, and condo-specific rules.

Month-to-Month After a Fixed Term

In Ontario, when a fixed-term lease expires, it does not automatically end — it converts to a month-to-month tenancy on the same terms. Tenants are not required to sign a new lease or leave at the end of a fixed term.