Ontario Standard Lease

What Is the Ontario Standard Lease

The Ontario Standard Lease is a mandatory lease form that landlords must use for most residential tenancies signed on or after April 30, 2018. It was introduced by the Ontario government to standardize residential lease agreements and ensure that both landlords and tenants understand their rights and obligations from the outset.

The Standard Lease applies to most rental housing in Ontario, including apartments, condos, single and semi-detached houses, and secondary suites. Exceptions include care homes, mobile home parks and land lease communities, and most social and subsidized housing.

Why It Is Required

Before the Standard Lease, landlords could use custom lease agreements that sometimes included illegal clauses, such as no-pet provisions, damage deposit requirements, or restrictions that conflicted with the Residential Tenancies Act (RTA). The Standard Lease was designed to eliminate these issues by providing a clear, government-approved template.

If you fail to provide a Standard Lease, the tenant can request one in writing. You then have 21 days to provide it. If you still do not provide it, the tenant may withhold one month's rent. This withheld rent is considered a deduction, not a missed payment, and cannot be used as grounds for eviction.

Key Sections of the Standard Lease

The Standard Lease is organized into clearly numbered sections that cover every essential aspect of the tenancy. Understanding each section helps you fill out the form correctly and avoid common mistakes.

• Section 1 - Parties: Names and contact information for the landlord and tenant
• Section 2 - Rental Unit: Address and description of the unit being rented
• Section 3 - Contact Information: How landlord and tenant will communicate
• Section 4 - Lease Term: Whether it is a fixed term (e.g., one year) or month-to-month
• Section 5 - Rent: Amount, due date, and acceptable payment methods
• Section 6 - Services and Utilities: What is included in the rent
• Section 7 - Rent Deposit: Amount collected and how it will be applied
• Section 8 - Key Deposit: Amount and conditions for return
• Section 9 - Smoking: Whether smoking is permitted in the unit
• Section 10 - Tenant Insurance: Whether it is required
• Section 15 - Additional Terms: Any extra conditions agreed upon by both parties

Adding Additional Terms

Section 15 of the Standard Lease allows you to add additional terms that are specific to your property or tenancy. However, these additional terms cannot conflict with the RTA. If they do, the RTA takes precedence and the conflicting term is void.

Common additional terms that are legally permissible include rules about guest parking, requirements for tenant insurance, noise guidelines, and instructions for garbage and recycling. You can also include condo rules if the unit is in a condominium building.

Terms that are not enforceable, regardless of whether they are included in the lease, include no-pet clauses (with limited exceptions for condos), requirements for post-dated cheques, restrictions on having guests, and any clause that waives the tenant's rights under the RTA.

Common Mistakes to Avoid

• Including a no-pet clause (generally unenforceable under the RTA)
• Requiring a damage or security deposit (only a last month's rent deposit is permitted)
• Demanding post-dated cheques as a condition of the tenancy
• Setting a rent increase schedule that exceeds the annual guideline for rent-controlled units
• Including a clause that allows the landlord to enter without proper notice
• Failing to specify which utilities are included in the rent

After the Lease Is Signed

Once both parties sign the Standard Lease, provide the tenant with a copy within 21 days. Keep your signed copy in a safe place as part of your tenancy records. The lease does not need to be notarized or witnessed to be valid.

When a fixed-term lease expires, it automatically converts to a month-to-month tenancy under the RTA. You do not need to sign a new lease. All the same terms continue to apply, and the tenant has the right to remain in the unit under the same conditions. You cannot require a tenant to sign a new lease or vacate at the end of a fixed term. For more rental market insights and landlord resources, visit The Rental Market.