Illegal Lease Clauses in Ontario: What’s Unenforceable and Why It Matters

Updated: March 2026

Written by the Keith & Françoise Real Estate Team, Ontario Realtors®, with experience reviewing residential leases and advising landlords and tenants on how illegal or unenforceable clauses affect real-world tenancy outcomes across the GTA and Niagara Region.

Why Some Lease Clauses Are Void in Ontario

Lease clauses cause many disputes between landlords and tenants in Ontario. Landlords include clauses that seem reasonable but are unenforceable under the Residential Tenancies Act (RTA). Tenants often sign leases without realizing that certain terms cannot be enforced, regardless of whether both parties agreed to them.

The RTA sets a floor for tenant protections. Any clause that removes or reduces these protections is void. The wording doesn’t matter. Tenant initials don’t matter. Good faith signatures don’t matter either. A clause that conflicts with the Act has no legal effect.

The legal rule and common misconceptions

Section 4 of the RTA is clear: any provision inconsistent with the Act is void. This applies even if the tenant agreed, whether the clause was negotiated, or whether the tenant objected at signing.

Not all custom clauses are illegal. Landlords can include additional terms in a lease. Many of those terms are enforceable. The key test is whether the clause conflicts with the RTA. If it does, the clause is void. If it doesn’t, the clause stands.

Why the RTA voids certain clauses

The RTA protects tenants from pressure and exploitation. Tenants desperate for housing in the GTA may agree to anything. The Act prevents landlords from extracting any illegal concessions.

This article covers the specific types of unenforceable clauses found in Ontario leases. Landlords drafting a lease in Brampton will learn which clauses fail. Tenants reviewing one in St. Catharines will understand their rights. Knowing which clauses hold up saves time and conflict.

For a broader overview of how residential leasing works in Ontario, see our complete guide to leasing in Ontario. For a detailed look at how lease clauses are structured and interpreted, see our guide on Ontario lease clauses.

Illegal Deposits and Fees

This is the most frequently violated rule. Under the RTA, landlords can collect only two types of deposits. A rent deposit equals one month’s rent (commonly called “last month’s rent”). A key deposit is limited to the actual replacement cost of the key.

Any other deposit or fee is illegal. This includes security deposits, damage deposits, pet deposits, cleaning fees, move-in fees, application fees, and administration fees. All of these violate the RTA. Clauses requiring any of these are void. Tenants can apply to the Landlord and Tenant Board (LTB) to recover illegal deposits they have paid.

We see this regularly in the GTA. Landlords include a “damage deposit” clause that looks standard but has no legal backing. Tenants pay it, the tenancy proceeds without incident, and the problem emerges only when tenants move out and request the deposit back.

No-Pet Clauses

Section 14 of the RTA voids no-pet clauses in Ontario residential leases by explicitly voiding any provision prohibiting animals in the residential complex.

Landlords cannot refuse to rent because someone has a pet or evict based solely on a no-pet clause. They can apply to the LTB if a pet causes damage or creates serious disturbance or poses a safety risk. Evictions in these cases are based on behaviour, not the clause.

The one exception involves condominiums. A condominium corporation’s declaration can restrict or prohibit pets. Those restrictions are enforceable under the Condominium Act. This is true even though the RTA’s no-pet prohibition applies to the lease itself. For more on how condo rules interact with tenancy law, see our guide on renting a condo in Ontario.

Guest Restrictions and Occupancy Limits

Guest restriction clauses are generally unenforceable. Tenants have the right to reasonable enjoyment, which includes having guests. Void clauses include “no overnight guests” and “no guests for more than three consecutive nights.”

Occupancy limits based on municipal bylaws or fire codes are a different matter. If a bylaw says the unit can safely house a maximum number of occupants, that limit applies. But a landlord cannot impose an arbitrary occupancy cap through the lease that is more restrictive than what the bylaw requires.

Shifting Maintenance to the Tenant

The RTA makes landlords responsible for maintaining the rental unit and residential complex in good repair. Any lease clause shifting this responsibility to the tenant is void.

Clauses requiring tenants to handle plumbing repairs are void. Clauses requiring appliance replacement and furnace maintenance are void. Structural fixes must remain the landlord’s responsibility. The landlord’s maintenance obligation exists regardless of what the lease says.

There is some room for reasonable arrangements. A lease can specify that the tenant is responsible for minor upkeep. This includes changing light bulbs or maintaining a garden. However, these responsibilities cannot conflict with the landlord’s statutory obligation to keep the unit in good repair. A clause like “tenant is responsible for all repairs under $500” is not enforceable.

Early Termination Penalties and Extra Charges

Early termination penalty clauses are void. The RTA sets rules for how tenancies end, covering notice periods and termination grounds. Clauses imposing financial penalties have no legal effect.

Late payment fee clauses are void. The RTA allows landlords to serve an N4 notice for non-payment. They can apply to the LTB for eviction. However, the RTA does not permit additional charges. Clauses like “a $50 late fee applies for rent after the 5th” are unenforceable.

Landlords also cannot charge interest on unpaid rent. They cannot charge administrative fees for processing maintenance requests. They cannot charge “wear and tear” charges at tenancy end either. The RTA does not contemplate these fees, and the LTB refuses to enforce them.

Clauses That Override Entry and Privacy Rules

Entry clauses without notice are void. Clauses reducing the 24-hour requirement are also void. The RTA’s entry provisions are mandatory. Agreements cannot change them.

This includes clauses that say “landlord may enter at any time for inspection purposes.” It also includes “tenant agrees to allow entry with 12 hours’ notice.” The 24-hour written notice requirement applies regardless. So does the 8 a.m. to 8 p.m. entry window.

For a full breakdown of the entry and showing rules, see our guide on access and showings during a tenancy in Ontario.

How the Ontario Standard Lease Affects Clause Enforcement

Most residential landlords in Ontario are required to use the Ontario Standard Form of Lease. The standard lease includes fields for additional terms, but those terms must comply with the RTA. If an additional term contradicts the standard lease or the Act, the standard lease takes priority.

A landlord who adds an illegal clause to the “additional terms” section of the standard lease has not created an enforceable obligation. They have created a clause that will be struck down if challenged. The standard lease was designed specifically to reduce the use of illegal clauses, and the LTB applies it accordingly.

What to Do If Your Lease Contains an Illegal Clause

Tenants: How to respond to illegal clauses

If your lease contains a clause you believe is illegal, you are not required to comply with it. Raise the issue with your landlord in writing, pointing out that the clause conflicts with the RTA. If the landlord insists on enforcing it, you can file a T2 application with the LTB. If you have already paid an illegal deposit, you can file to have it returned.

Landlords: How to prevent disputes

Review your lease against the RTA before signing with a new tenant. Remove any clauses that impose illegal deposits, no-pet restrictions, guest limits, or maintenance shifts. Using the Ontario Standard Lease and keeping additional terms within the bounds of the Act is the best way to avoid disputes.

For a detailed review of what can and cannot be included in a lease, see our guide on Ontario lease clauses. For information about tenant rights and landlord obligations during a tenancy, see tenant rights and landlord obligations in Ontario.

Frequently Asked Questions on Illegal Lease Clauses

Rental market conditions, landlord obligations, and tenant rights can vary depending on the property type and specific circumstances. This article reflects our experience working with tenants and landlords across Ontario, particularly in the GTA and Niagara Region. For advice specific to your situation, speak with a qualified real estate professional or licensed paralegal before making decisions.