Becoming a Landlord in Ontario: A 2026 Guide

Becoming a Landlord in Ontario · Updated for 2026

Featured photo by Maria Ziegler on Unsplash.

Renting out a home, condominium or additional residential unit in Ontario creates legal and practical responsibilities. Before advertising a unit, a prospective landlord should understand provincial tenancy rules as well as any municipal zoning, licensing, building and fire-safety requirements that apply to the property.

1. Confirm the Unit Can Legally Be Rented

Do not assume that an existing basement apartment, converted garage or accessory dwelling is legally established. Review zoning, building permits, applicable fire and electrical requirements, parking and servicing. Start with our municipality guides and zoning and permit resources.

2. Understand the Residential Tenancies Act

Most residential landlord-and-tenant relationships in Ontario are governed by the Residential Tenancies Act, 2006, although exemptions exist. The legislation addresses matters including rent, deposits, maintenance, entry, termination notices and applications to the Landlord and Tenant Board.

3. Use the Ontario Standard Lease When Required

Most private residential tenancies covered by the legislation require Ontario’s standard form of lease. Additional terms can sometimes be included, but terms that conflict with applicable legislation may not be enforceable.

4. Know the Rules for Deposits

Ontario has specific rules governing rent deposits and key deposits. A landlord should understand what can legally be collected, how a rent deposit must be applied and the rules concerning interest before accepting money from an applicant or tenant.

5. Screen Applicants Consistently

A landlord may evaluate prospective tenants, but screening practices must comply with Ontario human-rights requirements. Develop a consistent application process and document the criteria used rather than making decisions based on protected personal characteristics. See how to screen tenants legally in Ontario, then compare free and paid Ontario tenant-screening services.

6. Understand Rent Control and Rent Increases

Whether the annual rent-increase guideline applies can depend on the rental unit and when it was first occupied for residential purposes. Notice requirements and timing rules also apply. Do not increase rent simply because a lease term has ended. Review the Ontario rent-increase and rent-control guide and, where relevant, the separate rules for above-guideline rent increases.

7. Budget for the Real Cost of Being a Landlord

Rental income is only one side of the calculation. Consider mortgage payments, property taxes, insurance, condominium fees, utilities, maintenance, capital repairs and periods of vacancy. Review our guides to landlord insurance in Ontario and utilities in Ontario rentals, and discuss the appropriate rental-property coverage with an insurer before the tenancy begins.

8. Know Your Maintenance Responsibilities

Landlords generally have obligations to maintain rental properties in a good state of repair and comply with applicable health, safety, housing and maintenance standards. A lease clause cannot simply transfer every statutory responsibility to a tenant.

9. Learn the Rules Before Entering a Rental Unit

Ontario law regulates when and how a landlord may enter a rental unit. Some circumstances require advance written notice while specific exceptions permit entry without the usual notice. Learn the applicable rule before entering.

10. Learn the LTB Process Before You Need It

Landlords cannot simply remove a tenant or change the locks because rent is unpaid or a dispute occurs. Ontario uses prescribed notices and Landlord and Tenant Board processes. Using the wrong notice, termination date or procedure can delay an application.

Landlord Startup Checklist

• Confirm zoning and legal status of the rental unit.
• Confirm required permits, inspections and municipal licensing, plus practical property rules such as rental parking and smoking or cannabis restrictions where relevant.
• Review insurance coverage.
• Understand the Standard Lease.
• Create a lawful and consistent tenant-screening process and follow Ontario rental-advertising human-rights rules.
• Learn deposit and rent rules before collecting funds.
• Document the property’s condition at move-in.
• Keep organized tenancy, payment and maintenance records.
• Understand entry and maintenance obligations.
• Use current official LTB notices and instructions when necessary.

Becoming a Landlord in Ontario FAQ

Do I need a licence to become a landlord in Ontario?

Ontario does not have one universal provincial landlord licence, but some municipalities require rental licensing or registration for certain properties. Check the municipality before renting the unit.

Can I rent out an unapproved basement apartment?

Do not assume an existing unit is legal. Zoning, building, fire, electrical, parking and servicing requirements may need to be satisfied before the unit can be lawfully rented.

Related guides: Ontario Standard Lease · Tenant Screening · Rent Increases & Rent Control

Explore Landlord Resources Open Ontario Rental Tools

Important: This guide provides general educational information, not legal advice. Ontario tenancy rules and procedures can change and individual circumstances matter. Verify current requirements with the Government of Ontario, Tribunals Ontario, your municipality and an appropriate legal professional where necessary.