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

This article is part of our complete guide to leasing in Ontario. It covers the lease terms that don’t hold up. For the terms that do, see our companion article on Ontario lease clauses.

The same unenforceable terms turn up in leases across the GTA and Niagara, whether the rental is a condo, a semi or a basement apartment. In many cases, the landlord added them in good faith, assuming they would hold. Often, nobody finds out they’re void until a dispute reaches the Landlord and Tenant Board.

Why Are Illegal Lease Clauses in Ontario Automatically Void?

Illegal lease clauses in Ontario are void because section 4 of the Residential Tenancies Act says any term inconsistent with the Act is void. The words stay on the page; however, they carry no legal weight. In other words, the Board treats the clause as if it was never written.

That’s true even when both sides agreed. It applies when the tenant signed without objection, when both parties initialled the clause, and when the landlord believed the term was standard. The Act sets a floor for tenant protections, and no agreement can go below it. Meanwhile, the rest of the lease stays in force.

What the Standard Lease Does and Doesn’t Change

Not every custom term is illegal, though. Landlords can add terms in the additional terms section of the Ontario Standard Lease, and many of them hold up. So the test is simple: does the clause conflict with the Act? If it does, it’s void. If it doesn’t, it can stand.

Ontario introduced the Standard Lease partly to cut down on illegal terms. Most private residential tenancies that began on or after April 30, 2018 must use it. Still, an illegal term doesn’t become legal because it appears on the standard form. The Act governs everything in that document.

What Deposits Are Illegal in Ontario Lease Agreements?

Ontario generally permits a last month’s rent deposit and a refundable key deposit, subject to legal limits. A key deposit cannot exceed the expected replacement cost of the keys or access devices. Other charges, such as certain replacement-key costs and permitted NSF fees, are treated separately. A clause requiring a prohibited deposit or an unauthorized fee is void under Ontario tenancy law. Under the Act, the rent deposit can’t be more than one month’s rent, or one rental period’s rent if that’s less, and it can only be used for the last rental period.

Everything else is out. In particular, damage deposits, security deposits, pet deposits and upfront cleaning fees aren’t allowed. Move-in fees, application fees and administration charges aren’t either. A clause requiring any of them is void, and a tenant can apply to the Board to get the money back. For what landlords can lawfully ask at the application stage, see our article on tenant screening in Ontario.

Why the Damage Deposit Confusion Persists

Many landlords believe a damage deposit is standard because it’s common in other provinces and in the United States. However, Ontario’s Residential Tenancies Act doesn’t permit one. The confusion also comes from mixing up a last month’s rent deposit with a damage deposit, which are completely different things.

The landlord holds the last month’s rent deposit and applies it to the final rental period. It can’t be kept for damage or cleaning, and it can’t be applied to any other balance. Every year, the landlord must also pay interest on it at the rent increase guideline rate, which is 2.1% for 2026 and 1.9% for 2027.

So what about real damage? Tenants are responsible for undue damage caused by the wilful or negligent conduct of themselves, another occupant, or someone they permit into the property. During a tenancy, a landlord can apply to the Board on an L2 to claim the cost of qualifying damage. After the tenant has moved out, the landlord uses an L10, which must be filed within one year of the tenant leaving. Either way, holding back the rent deposit isn’t the remedy.

Are No-Pet Clauses Enforceable in Ontario?

No. Section 14 of the Residential Tenancies Act voids any term in a tenancy agreement that prohibits animals in or about the residential complex. As a result, a no-pet rule is one of the most common illegal lease clauses in Ontario, and a landlord can’t evict a tenant simply because it was broken.

There’s a difference between the lease and the application stage, though. The prohibition on no-pet lease clauses doesn’t generally stop a landlord from considering pets before a tenancy begins. However, any decision about an applicant must still comply with the Ontario Human Rights Code, which goes beyond service animals. Once the tenancy starts, any no-pet clause in the lease is void.

That doesn’t leave a landlord without options. If a pet causes serious damage, creates a safety risk, causes an allergic reaction for another tenant, or substantially disturbs others, the landlord may have grounds to apply to the Board. Those cases turn on the animal’s behaviour or effect, not on the clause.

The Condominium Exception

However, condominiums are the one meaningful exception. A condo’s declaration or rules can restrict or prohibit pets, and those rules bind everyone in the building, tenants included. They come from the Condominium Act, not the lease, which is why they can still be enforced.

If you’re renting a condo in the GTA and have a pet, read the corporation’s declaration and rules before signing. The lease clause won’t hold, but the condo’s rules can. For more on how condo rules affect a tenancy, see our article on renting a condo in Ontario.

Are Guest Limits Illegal Lease Clauses in Ontario?

Generally, yes. A lease cannot prohibit ordinary guests or require the landlord’s permission for overnight visitors. Tenants have a right to reasonable enjoyment of their home, and having guests is a normal part of that, so clauses such as “no overnight guests” can’t be enforced.

After all, the Act doesn’t set a number of nights a guest can stay. Instead, the question is whether the tenant’s guests cause a real problem, such as damage or substantial interference with others. By the time a landlord discovers the clause doesn’t work, it has usually created distrust on both sides.

Roommates, Occupancy Limits and Sublets

The same goes for roommates. Ontario’s guide to the Standard Lease lists a term that bans guests, roommates or any additional occupants as an example of a void term. Occupancy standards under municipal bylaws or the Fire Code still apply, along with other lawful limits, whatever the lease says.

A roommate generally shares the unit while the tenant continues living there. An assignment transfers the tenancy to another person. A sublet involves the tenant moving out temporarily and intending to return before the tenancy ends. Assignments and sublets require the landlord’s consent, but different rules apply. A landlord can refuse an assignment in principle. If the landlord agrees in principle, they cannot arbitrarily or unreasonably reject a proposed assignee. A landlord also cannot arbitrarily or unreasonably refuse a proposed subtenant.

Can a Landlord Shift Maintenance Costs to the Tenant?

No. Under section 20 of the Act, the landlord must keep the unit and the building in a good state of repair and meet health, safety and maintenance standards. So a clause that moves that duty to the tenant is void.

For example, “tenant is responsible for all plumbing repairs” is void. So is “tenant pays for appliance servicing,” or a requirement that the tenant arrange and pay for furnace maintenance. A “tenant pays the first $200 of any repair” clause may look like fair cost-sharing, but it conflicts with the same obligation. On the other hand, tenants are responsible for undue damage caused by the wilful or negligent conduct of themselves, another occupant, or someone they permit into the property.

Snow Removal and Lawn Care

By contrast, routine upkeep is often misunderstood. The landlord’s maintenance obligation covers the whole residential complex, including exterior grounds, not just the unit. The Board’s Interpretation Guideline 5 also says a lease term making the tenant responsible for maintaining any part of the unit or complex, beyond ordinary cleanliness and damage, is unenforceable. So a lease term making the tenant responsible for lawn care or snow clearing may not be enforceable as a maintenance obligation, even for a house the tenant rents alone. Get legal advice before relying on one.

The Ontario Court of Appeal considered this issue in Montgomery v. Van (2009 ONCA 808). The Court distinguished between a tenant’s obligations under a residential lease and a separate agreement to provide maintenance services. A landlord and tenant may enter into a separate agreement for the tenant to perform certain maintenance services, such as snow removal. However, the arrangement must be legally distinct from the tenancy agreement and cannot eliminate the landlord’s statutory maintenance responsibilities.

What Fees and Penalties Are Illegal in Ontario Leases?

Most penalty and fee clauses are illegal lease clauses in Ontario. For example, an early termination penalty is void, because the Act controls how a tenancy ends and what notice applies. That doesn’t mean a tenant can always leave a fixed-term lease early without financial consequences. A tenant who leaves without ending the tenancy properly may still be responsible for certain losses, such as rent until the unit is re-rented, subject to the Act and the landlord’s duty to mitigate. What the landlord can’t do is add an arbitrary penalty through the lease. Our article on how residential leases end in Ontario covers the proper process.

Likewise, a late fee clause is void. Instead, the Act gives landlords a set process for unpaid rent: an N4 notice, then an L1 application. For N4 notices given on or after September 21, 2026, the termination date must be at least 7 days after the notice is given, according to the Board’s N4 instructions. The instructions set no separate count for weekly or monthly tenancies, and they add one business day for courier delivery or five days for mail. Notices given before that date followed the earlier rules. For tenants who regularly pay late, the landlord’s remedy is a persistent late payment application, not a fee.

Other Illegal Lease Clauses: Charges the Board Won’t Enforce

There’s one fee the rules do allow. For a bounced cheque, a landlord can charge up to $20 plus whatever their bank charged, according to CLEO. Beyond that, interest on unpaid rent, fees for handling repair requests, and automatic move-out cleaning charges all fall outside what a lease can impose. Billing a tenant for normal wear and tear is in the same category.

Similarly, a landlord can’t require post-dated cheques or automatic payments, although both sides can agree to them. These clauses usually go into a lease as “protection,” but the Board won’t enforce them.

Can a Lease Change the Entry and Notice Rules?

No. The Act’s entry rules apply whatever the lease says. For most entries, the landlord must give at least 24 hours’ written notice. The written notice must state the reason for entry, the date, and the time of entry, which must be between 8 a.m. and 8 p.m.

There are exceptions to the 24-hour notice requirement, including emergencies, a tenant’s consent at the time of entry and certain showings to prospective tenants after the tenancy has been scheduled to end. These exceptions come from the Act, not from additional lease clauses.

So clauses like “landlord may enter at any time for inspection” or “tenant agrees to entry with 12 hours’ notice” are void. The 24-hour rule isn’t a default the two sides can contract around. For the full entry and showing rules, see our article on access and showings during a tenancy in Ontario.

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

Knowing the consequences is what motivates landlords to clean up a lease early. It also gives tenants the confidence to push back.

The Board Sets the Clause Aside

At a hearing, the Board won’t enforce a void clause. That doesn’t decide a separate claim that is otherwise valid, such as unpaid rent or real damage. However, the landlord can’t rely on the void clause to support it.

The Tenant Applies for a Refund on a T1

If a landlord collected money the Act doesn’t allow, such as a damage, security or pet deposit, the tenant can apply on a T1 to get it back. The Board’s T1 instructions say a tenant can only apply for illegal charges paid in the last 12 months, so timing matters. If the claim succeeds, the Board can order the landlord to repay it. Filing costs $48 online or $53 otherwise, according to the Board’s fees page.

The Tenant Applies About Their Rights on a T2

If a landlord tries to enforce an illegal entry clause, pushes a tenant to remove a pet under a void clause, or substantially interferes with reasonable enjoyment, the tenant may be able to file a T2. If the Board finds the landlord breached the tenant’s rights, it can order remedies such as a rent abatement and an order to stop. The outcome depends on the conduct, the legal grounds and the evidence. Separately, the maximum fine for an offence under the Act is now $100,000 for an individual and $500,000 for a corporation, as Ontario’s renting guide confirms, if an offence is prosecuted and proven.

How to Review a Lease for Illegal Clauses in Ontario

Reviewing a lease before signing takes far less time than a Board application. These four checks catch most of the illegal lease clauses we see in Ontario.

Step 1: Check Every Deposit and Fee

First, read every clause that mentions money other than rent. If the lease requires anything beyond the rent deposit and a refundable key deposit, flag it. In particular, look for “damage deposit,” “security deposit,” “pet deposit,” “cleaning fee,” “application fee” and “administration fee.”

Step 2: Check Repair and Maintenance Terms

Next, read every clause about upkeep or repairs. If a clause puts repair costs on the tenant or sets a dollar amount the tenant must cover first, it’s void. The landlord’s duty under section 20 can’t be signed away.

Step 3: Check Entry and Access Terms

Then read every clause about when the landlord can come in. Watch for anything that shortens the 24-hour written notice, widens the 8 a.m. to 8 p.m. window, or allows entry without a reason the Act permits.

Step 4: Look for Illegal Lease Clauses in the Additional Terms

Finally, go through the additional terms section of the Standard Lease line by line. Guest limits, no-pet rules, early termination penalties and late fees often sit there. If a term removes or reduces a protection the Act gives tenants, it’s void. If it doesn’t conflict with the Act, it can stand.

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

Start by confirming the clause conflicts with the Act, because not every unfamiliar term is illegal. After that, the steps differ for tenants and landlords.

For Tenants

If a clause does conflict with the Act, you don’t have to comply with it. Raise it with your landlord in writing, name the clause and keep a copy. If the landlord insists, you can apply to the Board: a T1 to recover money you shouldn’t have paid, or a T2 if the landlord’s actions interfere with your rights.

Also, if you haven’t signed yet and the landlord won’t remove an illegal clause, that tells you something about how problems will be handled later. It’s a fair thing to weigh before you commit.

For Landlords

Review your lease against the Act before each new tenancy. Remove illegal deposits, no-pet and guest clauses, repair-cost shifts, late fees and early termination penalties. Then keep your additional terms to what the Act allows. A clean lease starts any dispute on solid ground, and a lease full of void terms does the opposite.

For the terms that do hold up, read our article on Ontario lease clauses. For the wider relationship, see tenant rights and landlord obligations in Ontario.

We are not lawyers or paralegals, and this article is general information, not legal advice. It covers ordinary private tenancies under the Residential Tenancies Act and Landlord and Tenant Board guidance as of October 2026. Social housing, care homes, condominiums and shared accommodation can involve different rules. These rules can change. Before relying on or challenging a lease term, speak with an Ontario lawyer or a licensed paralegal.