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

Updated: April 2026

By Françoise Pollard, Realtor®, and Keith Goldson, Broker, Keith & Françoise Real Estate Team, eXp Realty Brokerage. We help tenants, landlords, and corporate relocators with leasing in Ontario across the GTA and Niagara Region, including Mississauga, Brampton, Milton, Burlington, Oakville, Hamilton, Etobicoke, Toronto, St. Catharines, Niagara Falls, Welland, and Thorold.

Illegal lease clauses in Ontario are more common than most landlords expect, and more dangerous than most tenants realize. Under the Residential Tenancies Act, any clause that conflicts with the Act is void from the start, regardless of what the lease says or who signed it. That applies to damage deposits, no-pet restrictions, guest limits, maintenance shifts, and entry rules. A tenant’s signature doesn’t make an illegal lease clause enforceable. It never did.

We review leases regularly for landlords and tenants across the GTA and Niagara Region. The same unenforceable clauses appear constantly: damage deposits in Mississauga condos, no-pet restrictions in Brampton semis, guest limits in St. Catharines apartments. Landlords include them assuming they will hold. When they discover those clauses are void, it’s usually at an LTB hearing. For a broader overview of how leasing works in Ontario, see our complete leasing guide.

What Actually Matters With Illegal Lease Clauses in Ontario

Three things determine whether a clause holds up: whether it conflicts with the RTA on its face, whether the section of the Act it conflicts with is mandatory or optional, and whether the landlord tries to enforce it through the LTB. The signature on the lease is irrelevant. The void clauses listed in the RTA are void regardless of who agreed to what.

Why Illegal Lease Clauses in Ontario Are Automatically Void

Section 4 of the Residential Tenancies Act sets the rule: any provision in a tenancy agreement that is inconsistent with the Act is void. The clause doesn’t disappear from the paper, but it carries no legal weight. The LTB treats it as if it was never written.

This applies even when both parties agreed. It applies when the tenant signed without objection, when both sides negotiated and initialled the clause, and when the landlord believed the term was standard. The Act sets a floor for tenant protections, and no agreement between a landlord and tenant can go below that floor.

What the RTA does and doesn’t allow

Not every custom clause is illegal. Landlords can add terms to the Ontario Standard Lease, and many additional terms are perfectly enforceable. The test is simple: does the clause conflict with the RTA? If yes, the clause is void. If no, the clause stands.

The Ontario government introduced the standard lease specifically to reduce illegal clauses. Since April 30, 2018, most private residential landlords must use it for new tenancies. Illegal terms in the additional clauses section don’t become legal just because they appear on the standard form. The Act still governs everything in that document.

What Deposits Are Illegal in Ontario Lease Agreements?

This is the single most common violation we see. Section 105 of the RTA prohibits security deposits outright, and Section 106 limits rent deposits to one month’s rent. Together, those two sections mean Ontario landlords can collect exactly two types of deposits: a rent deposit equal to one month’s rent (commonly called last month’s rent), and a key deposit limited to the actual replacement cost of the key. That is the complete list.

Damage deposits are illegal. Security deposits are illegal. Pet deposits are illegal. Cleaning fees collected upfront are illegal. Move-in fees, application fees, and administration charges are all illegal. Any clause requiring any of these violates the RTA. Landlords who collect them face an LTB order to return every dollar, plus interest in some cases. For more on what landlords can lawfully ask during the application stage, see our guide on tenant screening in Ontario.

Why the damage deposit confusion persists

Many landlords believe a damage deposit is standard practice because it is common in other provinces and in the United States. Ontario has never permitted damage deposits under the RTA. The confusion also comes from conflating a last month’s rent deposit with a damage deposit. They are completely different instruments. The landlord holds a last month’s rent deposit and applies it toward the final rent period at the end of the tenancy. A landlord cannot deduct damage costs from it, cannot keep it to cover cleaning, and cannot apply it to any balance other than final rent.

This is one of the fastest ways to lose at the LTB. Landlords who try to keep a deposit at the end of a tenancy, regardless of the reason, often discover that the deposit was illegal to begin with. At that point, they may owe the deposit back plus interest with no ability to offset legitimate damage claims through the same application.

Are No-Pet Clauses Enforceable in Ontario?

No. Section 14 of the Residential Tenancies Act explicitly voids any provision in a tenancy agreement that prohibits the presence of animals in or about the residential complex. A no-pet clause in an Ontario lease is unenforceable, full stop.

A landlord cannot refuse to rent to someone solely because they own a pet. A landlord cannot serve an eviction notice based on a lease clause that says no pets. If the pet causes documented damage, creates a genuine health or safety risk, or substantially disturbs other residents, the landlord may have grounds to apply to the LTB under Section 76. Those applications succeed or fail based on the pet’s behaviour, not on the clause itself.

The condominium exception

Condominium corporations present the one meaningful exception. A condo declaration can restrict or prohibit pets, and those restrictions apply to everyone in the building, including tenants. These rules come from the Condominium Act, not the RTA. A landlord renting out a condo unit subject to a no-pet declaration can enforce that restriction because the source of the rule is the corporation’s governing documents, not the lease.

If you’re renting a condo in the GTA and you have a pet, review the condo corporation’s rules before signing anything. The lease no-pet clause won’t hold, but the condo declaration can. For more on how condo rules interact with tenancy law, see our guide on renting a condo in Ontario.

Can a Landlord Restrict Guests in Ontario?

Generally, no. Tenants have the right to reasonable enjoyment of the rental unit, and having guests is a normal part of that enjoyment. Clauses like “no overnight guests,” “no guests for more than three consecutive nights,” or “landlord approval required for any guests” are unenforceable under the RTA.

The Act does not define how many nights a guest can stay, and the LTB consistently treats excessive guest restriction clauses as attempts to undermine the tenant’s right to quiet enjoyment. Many landlords only discover this after a dispute. By that point, the clause has created distrust, and the landlord has no enforceable tool to rely on.

Occupancy limits are a different matter

Occupancy limits tied to municipal bylaws or fire codes are separate from guest restrictions. If a bylaw specifies the maximum safe occupancy for a unit, that limit applies. A landlord cannot, however, impose a more restrictive occupancy cap through the lease than what the relevant bylaw requires. The bylaw sets the floor, and the landlord cannot go below it by contract.

There’s also an important distinction between a guest and an additional occupant. Guests are temporary. An occupant who moves in and shares the unit as a permanent resident is not a guest, and different rules apply. These clauses create false expectations when landlords conflate the two in the same lease clause, which is a common drafting error.

Can a Landlord Shift Maintenance Costs to the Tenant?

No. Under Section 20 of the RTA, landlords are responsible for maintaining the rental unit and the residential complex in a good state of repair, meeting health and safety standards, and complying with property standards. Any lease clause that transfers this obligation to the tenant is void.

Clauses like “tenant is responsible for all plumbing repairs” are void. Clauses saying “tenant pays for appliance servicing” are void. Requirements for tenants to arrange and pay for furnace maintenance are void. These responsibilities stay with the landlord regardless of what the lease says, what the tenant agreed to, and what the rent amount is.

Where a limited maintenance arrangement can work

There is a narrow legitimate path here. Landlords and tenants can agree to separate arrangements for minor upkeep tasks, such as lawn care or snow removal, as long as that agreement is a separate contract and is not embedded in the lease. When the obligation sits inside the lease itself, it forms part of the tenancy agreement and conflicts with the RTA’s maintenance provisions.

The LTB also consistently refuses to enforce “tenant pays first $X of any repair” clauses. A clause requiring the tenant to absorb the first $200 of any maintenance cost looks like a reasonable cost-sharing arrangement, but it directly conflicts with the landlord’s statutory maintenance obligation. The Board will not uphold it.

What Fees and Penalties Are Illegal in Ontario Leases?

Several fee types appear in Ontario leases regularly, and most of them are unenforceable. Early termination penalty clauses are void because the RTA controls how tenancies end and what notice periods apply. A tenant who breaks a fixed-term lease early may face consequences, but a contractual penalty clause in the lease cannot be enforced through the LTB. For a full breakdown of how leases properly end under the Act, see our guide on how residential leases end in Ontario.

Late payment fee clauses are void. The RTA gives landlords a clear remedy for non-payment: an N4 notice, followed by an L1 application to the LTB. That process exists specifically because the RTA does not permit late fees or interest charges. A clause adding a $50 penalty for rent paid after the fifth of the month has no legal effect.

Other charges the LTB will not enforce

Landlords cannot charge interest on unpaid rent. Administrative fees for processing maintenance requests carry no legal weight either. Move-out cleaning fees, whether included in the lease at signing or billed after the tenant leaves, are also unenforceable. Billing tenants for normal wear and tear at tenancy end falls into the same category.

These clauses create false expectations that lead to disputes. Many landlords include them believing they add financial protection. In practice, they produce conflict, and the LTB refuses to enforce them. The result is a landlord who spends hearing time arguing for a clause that was never going to stand, while the underlying relationship with the tenant deteriorates.

Can a Lease Change the Entry and Notice Rules?

No. Section 27 of the Residential Tenancies Act sets the entry rules, and they are mandatory. No lease clause can override them. Landlords must provide 24 hours of written notice before entering a rental unit for most permitted reasons, and entry is only allowed between 8 a.m. and 8 p.m. Any lease clause that reduces this notice period or expands permitted entry times is an unenforceable clause under Ontario law.

This includes clauses that say “landlord may enter at any time for inspection purposes” and clauses like “tenant agrees to allow entry with 12 hours’ notice.” Neither is enforceable. The 24-hour written notice requirement is not a default that parties can contract around. It applies regardless of what the lease says.

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

What Happens When a Landlord Uses an Illegal Lease Clause in Ontario?

This section matters. Understanding the specific consequences is what motivates landlords to clean up leases before a dispute starts, and what gives tenants confidence to push back when they need to.

The clause is simply ignored by the LTB

At a hearing, the LTB member will not enforce a void clause. The landlord’s application may rely on that clause as a central argument, and the member will set it aside entirely. That’s a significant problem if the clause was the foundation of the landlord’s case.

The tenant files a T1 to recover illegal deposits

If a landlord collected an illegal deposit, whether called a damage deposit, security deposit, or pet deposit, the tenant can file a T1 Application to recover the money. The LTB can order full repayment. Where the landlord collected a deposit in bad faith, the Board can also award additional compensation.

The tenant files a T2 for rights violations

If a landlord tried to enforce an illegal entry clause, attempted to remove a pet under a void no-pet clause, or substantially interfered with the tenant’s quiet enjoyment, the tenant can file a T2 Application about Tenant Rights. The LTB can order a rent abatement and require the landlord to stop the behaviour. Repeated violations in the same tenancy can result in larger abatement orders.

Credibility damage at the LTB is real

Landlords who try to enforce illegal clauses lose credibility at the Board. A member who sees that a landlord insisted on an illegal deposit, tried to enforce a void pet clause, or applied a late fee that has no legal basis will assess the landlord’s overall position with more skepticism. That credibility loss can affect the outcome of legitimate parts of the application too.

Penalties under the RTA

The RTA gives the LTB authority to order compensation and rent abatement when landlord conduct violates tenant rights. For corporate landlords, penalty amounts can be significant. Landlords who collect illegal deposits, harass tenants, or substantially interfere with quiet enjoyment put themselves in a position where the financial exposure exceeds what any illegal fee was ever worth.

How to Review a Lease for Illegal Clauses in Ontario

Reviewing a lease before signing takes less time than the average LTB application. These four areas cover most of the common violations we see in leases across the GTA and Niagara Region.

Step 1: Check all deposit and fee language

Read every clause that mentions money other than rent. If the lease requires any payment beyond the standard rent deposit and key deposit, that clause is illegal. Look specifically for words like “damage deposit,” “security deposit,” “pet deposit,” “cleaning fee,” “application fee,” and “administration fee.” Any of these should be flagged and removed before signing.

Step 2: Check maintenance and repair obligations

Read every clause that assigns responsibility for upkeep or repairs. If any clause places repair costs on the tenant, sets a dollar threshold below which the tenant must pay, or transfers exterior maintenance responsibility through the lease, it is void. The landlord’s maintenance obligation under Section 20 of the RTA cannot be contracted away.

Step 3: Check entry, notice, and access language

Read every clause that describes when and how the landlord can enter. If any clause reduces the 24-hour written notice requirement, expands the permitted entry window beyond 8 a.m. to 8 p.m., or allows entry without specifying a valid reason, it conflicts with Section 27 of the RTA. Valid reasons for entry include repairs, inspections with proper notice, and showing the unit to prospective tenants or buyers.

Step 4: Compare additional terms against the RTA

Review the additional terms section of the Ontario Standard Lease carefully. Landlords sometimes include guest restrictions, no-pet clauses, early termination penalties, or late payment fees in this section. Cross-check each term against the RTA. If a term removes or reduces a protection the Act provides to tenants, it is void. If it doesn’t conflict with the Act, it can stand.

What Should You Do If a Lease Contains an Illegal Clause?

For tenants: how to respond

First, confirm that the clause actually conflicts with the RTA. Not every unfamiliar term is illegal. If it genuinely violates the Act, you are not required to comply with it. Raise the issue with your landlord in writing, identify the specific clause, and note that it conflicts with the RTA. Keep a copy of that communication.

If the landlord insists on enforcing the illegal clause, you have options. For an illegal deposit you have already paid, file a T1 Application with the LTB to recover the funds. For attempts to enforce a void clause that interfere with your rights, such as removing a pet under a void no-pet clause or entering without proper notice, file a T2 Application. The LTB can order the behaviour stopped and award compensation.

If you haven’t signed yet and the landlord won’t remove an illegal clause, that tells you something about how disputes will be handled during the tenancy. It’s a fair signal to weigh before committing.

For landlords: how to prevent disputes

Review your lease against the RTA before signing with any new tenant. Remove clauses requiring illegal deposits, prohibiting pets, restricting guests beyond what bylaw requires, transferring maintenance obligations, or imposing late fees and early termination penalties. Use the Ontario Standard Lease. Keep additional terms within what the Act permits.

A clean lease is also a strategic advantage at the LTB. If a dispute arises, a landlord who presents a compliant lease will have credibility from the start. A landlord whose lease is filled with void clauses walks in already at a disadvantage, regardless of the merit of their underlying complaint.

For a detailed review of what landlords can and cannot include in a lease, see our guide on Ontario lease clauses that hold up at the LTB. For information about tenant rights and landlord obligations during a tenancy, see our article on tenant rights and landlord obligations in Ontario.

What This Means for Reviewing Your Ontario Lease

An illegal lease clause is a problem on paper, not a problem in law. The Act voids the clause the moment it conflicts with the RTA. The real question is whether either side discovers the problem before it costs them money, time, or credibility at the LTB.

Three principles separate clean leases from costly disputes. First, the signature on the lease is irrelevant to whether a clause holds up. If the clause conflicts with the RTA, no amount of agreement on the front end makes it enforceable on the back end. Second, the Standard Lease form is a starting point, not a guarantee. Illegal clauses sit in the additional terms section all the time, and the form itself doesn’t validate them. Third, the cost of a lease review before signing is always lower than the cost of an LTB hearing afterward, regardless of which side of the dispute you’re on.

For landlords, the strategic move is a clean lease that anchors credibility at the Board. For tenants, the strategic move is reading every additional term against the RTA before signing and pushing back on anything that doesn’t fit. Either way, the work happens before the lease takes effect, not after a dispute starts.

Ontario landlord and tenant law can change. This article reflects legislation and procedures as of the date noted and is for general informational purposes only. Bill 60 (Fighting Delays, Building Faster Act, 2025) was passed on November 24, 2025 but its RTA amendments have not yet come into force. Confirm current rules and obligations with a qualified legal professional or licensed paralegal before making decisions.