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Ontario landlord guides covering rental properties, tenant screening, leases, rent, notices, maintenance and Landlord and Tenant Board processes.

  • Rental Deposits in Ontario: What Landlords Can and Cannot Collect

    Rental Deposits in Ontario: What Landlords Can and Cannot Collect

    Ontario Rental Deposit Guide · Updated for 2026

    Featured photo by Aaron Lefler on Unsplash.

    Ontario tightly regulates deposits connected to residential tenancies. A landlord generally cannot create extra “security” charges simply because they appear in a lease or rental application.

    Last Month’s Rent Deposit

    A landlord may require a rent deposit on or before entering into the tenancy agreement. The amount cannot exceed the lesser of one month’s rent and one rental period. For a monthly tenancy, that normally means no more than one month’s rent.

    What Is the Deposit For?

    The rent deposit is applied to the final rent period before the tenancy ends. It is not a general damage deposit and should not be treated as a pool of money for cleaning, repairs or unpaid utility bills.

    Damage and Pet Deposits

    Ontario’s Standard Lease guide states that tenants do not have to provide deposits such as pet or damage deposits. A lease term attempting to require a prohibited deposit may be unenforceable even if both sides signed the document.

    Key Deposits

    A refundable key deposit may be permitted, but it should reflect the expected replacement cost of the keys or access device rather than operate as an additional security deposit.

    Interest on the Rent Deposit

    The Residential Tenancies Act contains rules requiring annual interest on a rent deposit. The deposit may also need to be topped up when lawful rent increases. Landlords should keep clear records so the amount and any interest adjustment can be reconciled correctly.

    Can a Tenant Voluntarily Prepay Rent?

    Prepaid rent can raise separate legal questions from a landlord-required security deposit. Landlords should be cautious about making large prepayments a condition of approval and should obtain legal advice where the arrangement is unusual.

    Quick Checklist

    • Do not require a damage deposit.
    • Do not require a pet deposit.
    • Keep last-month-rent deposits within the statutory limit.
    • Use rent deposits only for the last rent period.
    • Keep key deposits reasonable and refundable.
    • Provide receipts when required.
    • Keep records of deposit interest and lawful rent changes.

    Read the Ontario Standard Lease guide and explore our Landlords & Tenants hub.

    Ontario Rental Deposit FAQ

    Can an Ontario landlord charge a damage deposit?

    Generally no. Ontario restricts security deposits and the standard lease guide specifically identifies damage deposits as not permitted.

    What is a last month’s rent deposit used for?

    It is applied to the final rent period before the tenancy ends, not to general repairs or damage.

    Common questions about this topic

    Browse all 50 rental questions →

    General information only: Rental deposit disputes can be fact-specific. Confirm current rules with the Government of Ontario or Tribunals Ontario.

  • Ontario Standard Lease: What Landlords and Tenants Need to Know

    Ontario Standard Lease: What Landlords and Tenants Need to Know

    Ontario Standard Lease Guide · Updated for 2026

    Featured photo by Maria Ziegler on Unsplash.

    Ontario’s Standard Form of Lease is required for most residential tenancy agreements signed on or after April 30, 2018. It creates a written contract between landlord and tenant and summarizes many key rights and responsibilities under the Residential Tenancies Act.

    When Is the Standard Lease Required?

    It applies to most private residential rentals, including many rented houses, apartments, condominiums and basement apartments. Some specialized housing types are excluded, including certain care homes, mobile-home and land-lease arrangements, co-operative housing and some social or supportive housing.

    What Does the Lease Cover?

    The form covers the parties, rental unit, term, rent, services and utilities, rent discounts, deposits, key deposits, smoking, tenant insurance, changes to the unit, maintenance and repairs, assignment and subletting, additional terms and signatures. Related practical issues include parking rules and smoking and cannabis rules in Ontario rentals.

    Additional Terms Have Limits

    Landlords and tenants can add terms that are specific to the tenancy, but a term that attempts to remove a right or responsibility established by the Residential Tenancies Act may be void. The provincial guide specifically identifies examples such as blanket no-pet clauses, rules banning guests or roommates, illegal damage deposits and clauses requiring tenants to pay for repairs that are legally the landlord’s responsibility. For those common issues, see our guides to pets in Ontario rentals and roommates, guests and additional occupants.

    Pets, Condominiums and Extra Rules

    A lease clause that simply says “no pets” is generally not enforceable under the RTA. However, other laws or condominium declarations and rules can matter. A condominium corporation may have restrictions that affect a tenant even where an ordinary landlord-created no-pet clause would not be enforceable.

    Tenant Insurance

    The Standard Lease allows the parties to agree that the tenant will carry liability insurance. If the lease requires it, the landlord may request proof of coverage. Contents insurance for the tenant’s own belongings is separate. Our Ontario tenant-insurance guide explains the issue in more detail.

    Assignment and Subletting

    The Standard Lease notes that a tenant generally needs the landlord’s permission to assign or sublet the unit, and that consent cannot be arbitrarily or unreasonably withheld. Assignment and subletting have different legal effects, so tenants should understand which process applies before moving someone else in or transferring a tenancy.

    Landlord Checklist

    • Use the current Ontario Standard Lease when required.
    • Identify all landlords and tenants correctly.
    • Clearly state lawful rent, parking, utilities and included services.
    • Do not insert terms that conflict with the RTA.
    • Provide the tenant with a copy after signing.
    • Keep the signed lease and amendments with the tenancy file.

    Tenant Checklist

    • Read the entire lease before signing.
    • Confirm what utilities, parking and services are included.
    • Review every additional term.
    • Keep a complete signed copy.
    • Question clauses that appear to remove statutory rights.

    See the Government of Ontario Standard Lease guide and our Ontario Landlords & Tenants hub.

    Ontario Standard Lease FAQ

    Is the Ontario Standard Lease mandatory?

    It is required for most private residential tenancy agreements covered by the Residential Tenancies Act, subject to specific exceptions for certain specialized housing types.

    Can a landlord add extra terms?

    Yes, but an added term that conflicts with the Residential Tenancies Act may be void and unenforceable.

    Common questions about this topic

    Browse all 50 rental questions →

    General information only: This is not legal advice. Verify the current form and requirements with the Government of Ontario and obtain legal advice for a specific dispute or lease term.

  • Becoming a Landlord in Ontario: A 2026 Guide

    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.

    Free Ontario Tenant Screening Checklist

    Starting a tenancy? Use our printable screening checklist to organize applicant criteria, verification, references, privacy and move-in preparation.

    Get the Free Checklist →

    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.