How to Become a Landlord in Ontario

Becoming a landlord in Ontario can be a reliable way to build wealth, but it comes with real legal duties. From the mandatory Ontario Standard Lease to the Residential Tenancies Act (RTA) and the Landlord and Tenant Board (LTB), the rules favour doing things by the book. This guide walks you through every step — so you start out compliant, protected, and profitable.

Key takeaways

• Most residential tenancies in Ontario must use the mandatory Ontario Standard Lease.
• The Residential Tenancies Act (RTA) governs the relationship, and disputes are resolved by the Landlord and Tenant Board (LTB) — not the courts.
• Rent can rise once every 12 months with 90 days' written notice; the 2026 guideline is 2.1%.
• Rental income is taxable, but you can deduct eligible expenses against it.
• Screen tenants carefully and carry landlord insurance before handing over the keys.

What being a landlord actually involves

Owning a rental property is part real estate and part small business. You collect rent, but you also maintain the unit, follow provincial law, report income to the CRA, and handle disputes through a formal tribunal. In Ontario, the relationship between you and your tenant is governed by the Residential Tenancies Act (RTA), and you cannot contract your way out of its protections.

If you're weighing whether the effort pays off, read our honest look at whether being a landlord is worth it before you commit.

The four pillars of a compliant rental

Every Ontario landlord must get four things right: a proper lease, lawful rent increases, correct tax reporting, and adequate insurance. Get those right and the rest follows.

Step 1: Get the property rent-ready and insured

Before listing, make sure the unit is safe and meets municipal property standards — working smoke and carbon monoxide alarms, safe wiring, and no outstanding repairs. Then arrange the right coverage. A standard homeowner policy will not protect a tenant-occupied property, so you need a dedicated landlord insurance policy that covers the building, liability, and lost rental income.

1. Confirm the unit meets local property and fire-safety standards.
2. Switch from homeowner to landlord insurance.
3. Decide what's included (heat, water, parking) — it affects your rent.
4. Take dated photos of the unit's condition before move-in.

Step 2: Set the rent and find tenants

Price the unit using comparable local rentals — too high and it sits empty, too low and you leave money on the table. Our guide to setting the right rent price walks through the method. Once enquiries arrive, the single most important decision you'll make is who to rent to. Learn the legal, effective approach in how to screen tenants.

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Step 3: Sign the Ontario Standard Lease

For most residential tenancies, Ontario law requires the Ontario Standard Lease — a government form that spells out the rights and responsibilities of both sides. You can add reasonable terms, but you cannot remove tenant protections under the RTA. A signed standard lease protects you just as much as your tenant: it sets the rent, the term, and what's included in writing.

A new tenant's rent is whatever you and the tenant agree to at the start. Rent control only limits how much you can increase it later — explained next.

Step 4: Understand rent increases and rent control

Ontario caps annual increases on most units through a yearly rent increase guideline. The 2026 guideline is 2.1%, and it applies to most units first occupied on or before November 15, 2018. Units first occupied after that date are exempt from the guideline — a major detail covered fully in rent control in Ontario.

To raise rent on a guideline unit you must give 90 days' written notice using Form N1, and only once every 12 months. For an example of how that math looks year over year, see our tenant-side explainer on how much a landlord can raise rent.

Step 5: Handle income, taxes and disputes

Rental income is taxable — you report it on your tax return — but you can deduct eligible expenses like mortgage interest, property tax, insurance, and repairs. The mechanics are in taxes on rental income in Canada.

When problems arise, Ontario has a strict process. You can never use a 'self-help' eviction — changing the locks or shutting off utilities is illegal. All evictions must go through the Landlord and Tenant Board (LTB). If it comes to that, follow the lawful steps in how to evict a tenant in Ontario.

Never take matters into your own hands

Locking a tenant out, removing belongings, or cutting off heat or water is illegal in Ontario and can expose you to serious penalties. Eviction is only valid through an LTB order.