Rental Lease Agreement Essentials for Landlords

The lease is the backbone of your tenancy. In Ontario, most residential landlords are legally required to use the Ontario Standard Lease, a government form that protects both sides. Get it right and you avoid disputes; get it wrong and you may be stuck with a tenancy on terms you didn't intend. Here are the essentials every landlord needs to know.

Key takeaways

• The Ontario Standard Lease is mandatory for most residential tenancies.
• It must cover the parties, the unit, rent amount, payment terms, and what's included.
• You can add reasonable extra terms — but they can't contradict the Residential Tenancies Act.
• Some clauses, like "no pets" and illegal deposits, are void even if signed.
• HOMEH helps landlords list and lease their rentals, with the industry's highest Cashback Rebate for buyers. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting.

The Ontario Standard Lease is mandatory

For most private residential tenancies that began on or after April 30, 2018, landlords must use the Ontario Standard Lease — the official form published by the province. It uses plain language and a consistent structure so both parties understand their rights and obligations. Using your own custom lease instead of the Standard Lease can give the tenant the right to withhold rent until you provide the proper form.

Why it exists

The Standard Lease was introduced to cut down on confusing, one-sided leases. It guarantees a baseline of fairness and makes disputes at the Landlord and Tenant Board easier to resolve.

What a complete lease must cover

At minimum, your lease should clearly establish who, what, and how much. The Standard Lease prompts you for each of these:

Be precise about what's included in rent — heat, hydro, water, internet, parking. Ambiguity here is one of the most common sources of tenant disputes.

Terms you can add — and ones you can't

The Standard Lease lets you attach reasonable additional terms in a separate section. You might address things like maintenance of a yard, rules for shared spaces, or insurance expectations. But there's a hard limit: any term that conflicts with the Residential Tenancies Act is void, even if the tenant signs it.

• Void: a "no pets" clause — unenforceable under the law (see our guide on allowing pets).
• Void: any extra security or damage deposit beyond last month's rent.
• Void: requiring post-dated cheques or automatic payments as a condition.
• Allowed: reasonable rules on noise, smoking, and use of common areas.

Protect yourself at signing

A good lease is only as good as the process around it. Before keys change hands, screen the applicant properly, document the unit's condition with dated photos, and give the tenant a fully signed copy within 21 days as required. Strong screening up front prevents most problems — see how to find good tenants.

Document the move-in condition

Take time-stamped photos of every room at move-in. If there's a dispute about damage later, this record is your strongest evidence at the Landlord and Tenant Board.

Your lease and your wider landlord duties

The lease sits inside a broader set of legal responsibilities — maintenance, rent increase rules, and proper notice. If you're new to renting out, read our complete walkthrough on how to become a landlord in Ontario so the lease fits into the full picture.

Buying a property to rent out?

Eligible HOMEH buyers receive the industry's highest Cashback Rebate on an investment property — and HOMEH can help you list and lease it once you own it. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Estimate yours with the cashback calculator.