An Ontario rental agreement is a legally binding contract between a landlord and a tenant that outlines the terms of renting a residential unit in Ontario. It must comply with the Residential Tenancies Act, 2006 (RTA), and since 2018, most landlords are required to use the official Standard Lease form (Form 222).
Background: Why Ontario Has a Standard Lease
Before 2018, Ontario landlords could use their own rental contracts, which often contained illegal or confusing clauses. The provincial government introduced the mandatory Standard Lease to make renting more transparent and to reduce disputes. The form is the same for all private residential tenancies, including houses, apartments, and condos, but it does not apply to certain exemptions like shared accommodation with the landlord, some care homes, or seasonal properties.
The Standard Lease is written in plain language and covers all essential terms, such as rent, deposits, maintenance, and termination rules. It also includes a section for additional terms, but those cannot conflict with the RTA. If a landlord uses a non-standard lease, the tenant can request the official form, and the landlord must provide it within 21 days. If they don’t, the tenant can withhold one month’s rent, but only after following the proper process.
How an Ontario Rental Agreement Works
When you sign a lease, you agree to specific rights and responsibilities. The landlord must provide a unit that meets health and safety standards, and the tenant must pay rent on time and keep the unit clean. The lease can be for a fixed term (e.g., one year) or month-to-month. After a fixed term ends, the tenancy automatically becomes month-to-month unless both parties agree to renew for another term.
Rent increases are regulated. In 2025, the guideline is 2.5%, but this changes annually. The landlord must give at least 90 days written notice using the proper form (N1). The rent can only be increased once every 12 months. If the unit is not covered by the guideline (e.g., new buildings first occupied after November 15, 2018), the landlord can increase rent by any amount, but they still need to give 90 days notice.
How to Choose the Right Rental Agreement
Choosing the right agreement depends on your situation. Here are the main types:
- Fixed-term lease: This lasts for a set period, usually one year. You cannot end it early without penalty unless the landlord agrees or you assign the lease to someone else.
- Month-to-month lease: This continues indefinitely until either party gives proper notice. It offers more flexibility but less security.
- Roommate agreement: If you share a unit with the landlord or are subletting, a separate agreement may be needed, but it is not covered by the RTA.
Before signing, read every clause. Check the rent amount, due date, and what utilities are included. Ensure any additional terms are legal—for example, a landlord cannot ban pets (with some exceptions in condos) or require post-dated cheques. If you are unsure, contact the Landlord and Tenant Board (LTB) or a community legal clinic.
Common Problems and How to Handle Them
Disputes often arise over repairs, rent increases, or deposit returns. If a landlord fails to make necessary repairs, you must give them written notice and a reasonable time to fix the issue. If they don’t, you can apply to the LTB for an order to compel repairs or even reduce your rent. Do not withhold rent without a formal order—that can lead to eviction.
Another common issue is the last month’s rent deposit. The landlord can only use it for the last month’s rent, not for damages. If the unit is damaged beyond normal wear and tear, the landlord can apply to the LTB for compensation, but they cannot automatically keep your deposit.
If you need to move out early, you can assign your lease to a new tenant. The landlord cannot unreasonably refuse an assignment. If they do, you can give 30 days notice to end the tenancy. If you are facing eviction, you have the right to a hearing. Never sign an N11 (mutual agreement to end tenancy) if you are being pressured—it waives your rights.
Costs and Financial Considerations
The main costs are rent and a last month’s rent deposit. The landlord cannot ask for more than one month’s rent as a deposit. They also cannot charge application fees, key deposits, or pet deposits. If you pay rent by cheque, the landlord can cash it, but they must provide receipts if you ask.
Utilities may be separate or included. If separate, the lease should state which utilities you are responsible for. In some buildings, water and heat are included, while electricity is metered separately. Always clarify this before signing.
Rent is due on the first of the month unless otherwise agreed. Late payment can result in a fee, but that fee must be reasonable and stated in the lease. The landlord can evict for non-payment, but they must give 14 days notice and file with the LTB.
Safety and Legal Rights
Your lease cannot override your rights under the RTA. For example, a landlord cannot enter your unit without 24 hours written notice, except in emergencies. They cannot change the locks or remove your belongings without a court order. If they do, contact the LTB immediately.
Smoke and carbon monoxide detectors must be installed and maintained by the landlord. The unit must be heated to at least 21 degrees Celsius from September 1 to June 15. If you have concerns about safety, you can contact your local municipal by-law enforcement or the fire department.
If you feel your landlord is harassing you or interfering with your reasonable enjoyment, you can file a complaint with the LTB. You also have the right to privacy, and the landlord cannot enter without proper notice except for emergencies.
Template: Ontario Rental Agreement (Standard Lease)
Template for a Standard Lease (Form 222) – Blank
| Field | Details |
|---|---|
| Landlord Name | _____________________________ |
| Tenant Name | _____________________________ |
| Property Address | _____________________________ |
| Rent Amount | _____________________________ |
| Rent Due Date | _____________________________ |
| Term Start Date | _____________________________ |
| Term End Date (if fixed) | _____________________________ |
| Utilities Included | _____________________________ |
| Last Month’s Rent Deposit | _____________________________ |
| Additional Terms | _____________________________ |
Sample (fictional): Landlord: Jane Smith, Tenant: John Doe, Property: 123 Main St, Toronto, Rent: $1,500 due on 1st, Term: Jan 1, 2025 – Dec 31, 2025, Utilities: Heat and water included, Deposit: $1,500, Additional: No smoking inside.
Frequently Asked Questions
Can a landlord refuse to sign the standard lease?
No, the landlord must use the standard lease for most tenancies. If they refuse, you can send a written request, and if they don’t comply within 21 days, you can withhold one month’s rent. However, you must first give them the opportunity to correct the issue, and you cannot withhold rent without following this process.
Can I break my lease early without penalty?
Generally, no, unless you have a specific reason like domestic violence or a landlord’s breach. You can assign the lease to a new tenant, and if the landlord refuses, you can leave with 30 days notice. Otherwise, you may be responsible for rent until the lease ends or a new tenant is found.
Are pets allowed in Ontario rentals?
Yes, a lease cannot prohibit pets, and a landlord cannot evict you for having a pet. The only exceptions are if the pet causes allergies or damages, or if the building is a condo with a pet restriction. You are responsible for any damage your pet causes.
How much can the rent increase?
For units covered by the rent control guideline, the increase is set annually (2.5% for 2025). The landlord must give 90 days written notice. For units not covered (newer buildings), the landlord can increase by any amount, but still must give 90 days notice.
What happens if the landlord sells the property?
Your lease remains valid. The new owner becomes your landlord and must honor the existing terms. They can only end the tenancy for personal use, and they must give you proper notice and compensation if applicable.
Can a landlord keep my last month’s rent deposit for damages?
No, the deposit can only be used for the last month’s rent. If there are damages beyond normal wear and tear, the landlord must apply to the LTB to claim compensation. They cannot simply keep the deposit.
If you have specific legal questions about your situation, it’s always best to consult a lawyer or a community legal clinic.