Estimated reading time: 8 minutes

For Ontario rental property owners, a detailed lease can feel like protection. But adding more restrictions does not necessarily reduce risk. If a clause conflicts with Ontario’s Residential Tenancies Act (RTA), it may be void and unenforceable — even when the tenant agreed to it and signed the lease.

The strongest lease is not the one with the most rules. It is the one that clearly documents lawful responsibilities, anticipates operational problems and gives the owner a remedy that can actually be enforced. Here are the lease clauses Ontario landlords should avoid — and what to use instead.

Why unenforceable lease clauses create risk for owners

A void clause does not become enforceable because it appears in an additional schedule, was initialled separately or was described as non-negotiable. Under the RTA, a term that conflicts with the Act or its regulations has no legal effect.

For owners, the problem is practical. An unenforceable clause can create a false sense of security while providing no remedy when something goes wrong. It may also lead to a tenant application, repayment order or unnecessary dispute at the Landlord and Tenant Board (LTB).

Your lease should work alongside the RTA — not attempt to replace it.

Requiring excessive advance rent

An Ontario landlord can require a rent deposit before the tenancy begins, but the deposit cannot exceed one month’s rent or the rent for one rental period, whichever is less. It must be applied to the tenant’s final rental period and cannot be held as general security against damage, arrears or other expenses.

The first month’s payment is regular rent. The last month’s rent deposit is the permitted security deposit. Owners should not require additional months of prepaid rent, describe them as a security deposit or make them a condition of approving the tenancy.

This issue often arises when an applicant has limited Canadian credit history, variable income or another perceived risk factor. The safer approach is stronger screening, verified income, landlord references and, where appropriate, a properly drafted guarantor agreement — not an unlawful deposit requirement.

Damage, security and pet deposits

Damage deposits, security deposits and pet deposits are not permitted for most Ontario residential tenancies. Renaming the payment does not make it lawful. Terms such as “cleaning deposit,” “furniture deposit,” “move-out deposit” or “security fee” can still be treated as prohibited charges if the money is being held against possible future damage or loss.

A refundable key deposit is permitted, but it should not exceed the expected replacement cost of the keys, fobs, cards or remote-entry devices.

Owners should protect the property through:

  • A documented move-in inspection with dated photographs
  • Clear procedures for reporting damage and maintenance issues
  • Tenant liability insurance requirements
  • Regular, properly noticed inspections
  • Invoices, photographs and written records when damage occurs
  • The appropriate LTB application when compensation is owed

The tenant remains responsible for undue damage caused wilfully or negligently by the tenant, another occupant or a guest. What the landlord cannot do is collect a damage fund in advance instead of proving the actual loss.

Mandatory post-dated cheques or automatic withdrawals

A landlord cannot require a tenant or prospective tenant to provide post-dated cheques, authorize automatic bank withdrawals or accept automatic credit-card charges as the mandatory method of paying rent.

The landlord and tenant may voluntarily agree to one of these payment methods. The lease should also explain how the tenant can pay if that arrangement is cancelled or no longer available.

Owners should also avoid automatic late-payment penalties, daily interest charges and broad administrative fees. Where a payment is returned for insufficient funds, the landlord may be able to recover the actual financial institution charge and a limited administrative charge, but it should be documented and handled separately from the rent owed.

Blanket no-pet clauses

A standard clause prohibiting all pets is generally void in an Ontario residential lease. Writing “no pets,” adding the clause to a separate schedule or having the tenant initial it does not ordinarily make the restriction enforceable.

There are important exceptions and remedies. Condominium declarations, bylaws or rules may lawfully restrict certain animals. A landlord may also have grounds to act when a particular animal causes undue damage, creates excessive noise, seriously affects another resident because of an allergy, presents a safety issue or substantially interferes with another person’s reasonable enjoyment.

Instead of relying on a blanket ban, owners should:

  • Attach applicable condominium rules to the lease
  • Require compliance with lawful building and condominium restrictions
  • Document specific noise, damage, safety or interference concerns
  • Respond to the animal’s actual conduct rather than relying only on the lease wording
  • Use the proper LTB notice and application when legal grounds exist

No-guests, no-roommates or approval-of-occupants clauses

A landlord generally cannot prohibit guests, require advance permission for visitors, charge additional rent because a tenant has a guest or prevent the tenant from having a roommate.

The tenant is still responsible for the behaviour of occupants and guests. Municipal occupancy standards must be followed, and conduct that causes damage, creates a serious disturbance or interferes with the landlord’s or another tenant’s rights may provide grounds for action.

A guest or roommate is also different from an assignment or sublet. If the tenant moves out and transfers possession of the unit to someone else, the RTA’s assignment or subletting rules may apply. Owners should address the actual occupancy arrangement rather than using a blanket prohibition that also captures lawful guests and roommates.

Transferring all maintenance and repair obligations to the tenant

A lease cannot eliminate the landlord’s obligation to maintain the rental unit and property in a good state of repair or to comply with applicable health, safety, housing and maintenance standards.

Avoid clauses stating that the tenant is automatically responsible for every repair, appliance failure, plumbing problem, pest issue, municipal violation, insurance deductible or service call. Responsibility depends on what happened, what the lease lawfully assigns and whether the issue resulted from normal wear, a building defect or the tenant’s wilful or negligent conduct.

The tenant can be responsible for:

  • Maintaining ordinary cleanliness in the rental unit
  • Repairing or paying for undue damage caused by the tenant, occupants or guests
  • Paying utilities that are clearly allocated to the tenant in the lease
  • Following reasonable procedures for reporting leaks, damage and maintenance concerns
  • Complying with lawful rules for garbage, recycling and common-area use

The lease should define reporting procedures and tenant responsibilities clearly, but it should not attempt to transfer the owner’s underlying statutory duties.

Unrestricted inspection or entry rights

A clause stating that the landlord may enter the rental unit “at any time” or “whenever the landlord considers it necessary” does not override Ontario’s entry rules.

In most non-emergency situations, the landlord must provide at least 24 hours’ written notice. The notice must state the reason, date and a time of entry between 8:00 a.m. and 8:00 p.m. Entry must also be for a reason permitted by the RTA or for a reasonable purpose identified in the tenancy agreement.

Notice is not normally required in an emergency, when the tenant consents at the time of entry or in certain other circumstances permitted by the RTA. When a tenancy is ending, a landlord may show the unit to prospective tenants after making a reasonable effort to inform the current tenant.

A better lease clause explains lawful inspection purposes and how notices will be delivered. It should not give the owner broader entry rights than the RTA allows.

Automatic eviction or lockout clauses

A tenant cannot be automatically evicted because the lease says that a particular breach ends the tenancy. A landlord must use the correct notice, establish a legally recognized reason and, when the tenant does not leave voluntarily, obtain an eviction order from the LTB.

The owner, property manager or locksmith cannot personally enforce an eviction order. Only the sheriff can carry out an eviction authorized by the Board.

The end of a fixed-term lease also does not automatically require the tenant to move. In most cases, the tenancy continues on a month-to-month basis under the existing terms unless it is lawfully ended.

Owners should be particularly cautious about asking a tenant to sign an Agreement to End a Tenancy at the beginning of the lease. An agreement obtained when the tenancy is first entered into is generally not a reliable substitute for the RTA’s termination process.

Penalties that operate as additional rent

Avoid clauses imposing arbitrary charges for late rent, complaints, additional occupants, lease breaches, inspections, paperwork, notices or routine communication. Putting a fee in the lease does not automatically make it collectible.

The RTA restricts the deposits, fees and penalties that landlords may collect. Adding an unauthorized amount to an arrears notice can also complicate or undermine an otherwise valid LTB filing.

Before adding any charge, determine:

  • Whether the charge is expressly permitted by the RTA or regulations
  • Whether it represents an actual, documented cost
  • Whether the LTB has authority to order its payment
  • Whether it should be claimed as rent, compensation or a separate debt

What Ontario landlords can include in a lease

The Ontario Standard Lease allows owners and tenants to agree to additional terms that are specific to the property. Those terms must be clear and consistent with the RTA.

Depending on the property, lawful terms may address:

  • Smoking rules within the unit and on the property
  • A requirement to maintain tenant liability insurance and provide proof
  • Responsibility for separately metered or lawfully allocated utilities
  • Parking spaces, storage areas and common amenities
  • Garbage, recycling and waste-disposal procedures
  • Condominium declarations, bylaws and rules
  • Restrictions on unauthorized alterations to the unit
  • Procedures for reporting maintenance issues and emergencies
  • Lawful rules governing common spaces and shared facilities
  • The actual replacement cost associated with keys or access devices

Additional terms should be written in plain language and attached to the Standard Lease. They should describe the expected conduct, who is responsible and what lawful process applies if the term is breached.

“The strongest lease is not the lease with the most restrictions. It is the lease that clearly documents lawful expectations, preserves the owner’s remedies and avoids promises that cannot be enforced at the Landlord and Tenant Board.”

Before adding a custom lease clause

Before placing an additional term in an Ontario residential lease, ask three questions:

  • Does this clause conflict with a right or responsibility established by the RTA?
  • Does the Ontario Standard Lease already address this issue?
  • If the tenant breaches the clause, what lawful notice, application or remedy would the owner actually use?

If there is no enforceable remedy, the clause probably offers less protection than it appears to.

A properly prepared lease is only one part of reducing tenancy risk. Consistent screening, inspections, documentation, maintenance and tenant communication matter just as much. LandLord’s tenant search and leasing service helps Toronto property owners establish the tenancy correctly before the tenant takes possession.

Resources for Ontario rental property owners

Frequently Asked Questions

→ Can an Ontario landlord require several months of rent in advance?

An Ontario landlord should not require several months of prepaid rent as a security deposit or condition of approving the tenancy. The permitted rent deposit is limited to one month’s rent or one rental period, whichever is less, and it must be applied to the final rental period. Owners concerned about an applicant’s risk should rely on lawful screening, income verification, references and an appropriately drafted guarantor agreement.

→ Can a landlord charge a damage or pet deposit in Ontario?

No. Damage, security and pet deposits are not permitted for most Ontario residential tenancies. A landlord may collect a refundable key deposit based on the expected replacement cost of the keys or access devices. If a tenant causes undue damage, the owner must document the loss and pursue the appropriate legal remedy rather than deducting it from an advance damage deposit.

→ Can an Ontario landlord include a no-pets clause?

A blanket no-pets clause is generally void. However, condominium rules may restrict certain pets, and a landlord may have grounds to act when a specific animal causes undue damage, serious noise, safety concerns, allergic reactions or substantial interference with another resident’s reasonable enjoyment.

→ Can a landlord prohibit guests or roommates?

A landlord generally cannot prohibit guests, require advance approval for visitors, charge additional rent because of a guest or prevent a tenant from having a roommate. Municipal occupancy standards still apply, and the tenant remains responsible for damage or disturbances caused by occupants and guests. Assignments, sublets and short-term rentals are separate arrangements that may require the landlord’s consent.

→ Can an Ontario landlord require tenant insurance?

Yes. The Ontario Standard Lease allows the landlord and tenant to agree that the tenant must maintain liability insurance. When this requirement is included, the landlord may request proof of coverage. The lease should clearly distinguish liability insurance from optional coverage for the tenant’s personal belongings.

→ Is an illegal lease clause enforceable if the tenant signed it?

No. A signature does not make a clause enforceable when it conflicts with Ontario’s Residential Tenancies Act or its regulations. The conflicting term is void, while the remainder of the tenancy agreement may continue to apply.

Sources: Ontario Residential Tenancies Act, 2006, including sections 4, 14, 20, 22, 26, 27 and 105–108; Ontario Guide to the Standard Lease; and Landlord and Tenant Board Interpretation Guideline 11.

Disclaimer: This article provides general information for Ontario rental property owners and is not legal advice. Laws, regulations and LTB procedures may change. For advice about a specific tenancy, consult a lawyer or licensed paralegal familiar with Ontario residential tenancy law.