Leasing in Ontario | Guide for Landlords and Tenants

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.

Françoise Pollard, Realtor®, and Keith Goldson, Broker, have helped landlords, tenants, and investors across the GTA and Niagara Region for more than 30 years combined. We have screened tenants for condo investors in Mississauga, helped first-time landlords in St. Catharines price their rentals correctly, and represented tenants who needed someone in their corner during a difficult search. This guide covers the full leasing process in Ontario, from deciding whether to rent or sell to managing your obligations after a tenant moves in.

Should You Rent Your Property or Sell It?

Whether renting or selling makes more sense depends on your carrying costs, your timeline, and your tolerance for landlord obligations. Renting keeps the asset on your balance sheet and generates monthly income. However, it also means you become a landlord under Ontario’s Residential Tenancies Act. That comes with legal obligations, financial risk, and a time commitment many homeowners underestimate.

Selling gives you a clean break. You receive the proceeds, pay any capital gains tax owing, and move on. For homeowners relocating from the GTA to the Niagara Region, this is often the simpler path. The equity from the sale usually funds the next purchase.

When Renting Might Make Sense

Renting may work if the market is soft and you can cover your carrying costs. It also makes sense if you plan to return to the property within a few years or if the rental income supports your retirement plan. However, Ontario’s landlord-tenant framework heavily favours tenant security of tenure. Once a tenant is in place, removing them is difficult and expensive if done improperly.

Run the Numbers First

Before deciding, calculate your monthly carrying costs against realistic rental income. Include mortgage, property tax, insurance, and a maintenance reserve. Factor in vacancy periods, potential repairs, and management costs. If the numbers are tight, selling may be the stronger financial decision.

How Does Leasing in Ontario Work?

The Residential Tenancies Act (RTA) governs leasing in Ontario. It sets strict rules for rent, deposits, evictions, and tenant rights across every residential rental in the province. The law applies to apartments, houses, condos, and basement suites.

What Law Governs Leasing in Ontario?

The RTA protects both tenants and landlords, but the balance of obligations is significant. Landlords cannot simply ask a tenant to leave because the lease term has ended.

What Happens When a Lease Term Ends?

In Ontario, a fixed-term lease automatically converts to month-to-month at the same rent. This happens unless the tenant gives proper notice or the landlord obtains an order from the Landlord and Tenant Board (LTB). This rule is one of the most important distinctions between Ontario and other provinces.

The Ontario Standard Lease

Since April 30, 2018, most residential landlords in Ontario must use the Ontario Standard Lease. This government-issued form covers names, address, rent amount, lease term, and included services. Landlords can add terms in the designated section. However, any clause that contradicts the RTA is void under Section 4.

If a landlord fails to provide the standard lease within 21 days of a written request, the tenant can withhold one month’s rent. The standard lease protects both parties from unenforceable terms. For a breakdown of which clauses hold up, see our guides on Ontario lease clauses and illegal lease clauses in Ontario.

Rent Control and Exemptions

Most Ontario rental units are subject to rent control. For 2026, the provincial rent increase guideline is 2.1%. A landlord can only raise rent once every 12 months and must provide 90 days’ written notice using the correct N-form.

However, units in buildings first occupied after November 15, 2018 are exempt from the guideline. Landlords of these newer units can increase rent by any amount. They still must follow the 90-day notice and 12-month rules. This exemption covers many new condo rentals and purpose-built buildings across the GTA.

What Landlords Can and Cannot Charge

Ontario landlords can collect first and last month’s rent at the time of signing. The landlord must apply the last month’s deposit to the final month of tenancy. It cannot be held as a damage deposit. Landlords can also collect a key deposit limited to the replacement cost.

Damage deposits, cleaning fees, pet deposits, and non-refundable application fees are all illegal under the RTA. Move-in fees are only permitted where the condo corporation charges them. A tenant who pays an illegal charge can file a T1 application with the LTB. For details on what crosses the line, read our guide to tenant rights and landlord obligations in Ontario.

What Documents Do You Need Before Listing Your Rental?

Before you list a rental property in Ontario, you need several documents ready. Missing any of these can delay the process or create legal exposure down the road.

Essential documents for landlords:

• A completed Ontario Standard Lease (the government template, not a custom form)
• Proof of property insurance that covers rental use
• A rental application form that complies with the Ontario Human Rights Code
• Written consent forms for credit checks (Equifax or TransUnion)
• Condo corporation’s declaration, bylaws, and rules (if renting a condo unit)
• A current property condition report with dated photos
• Contact information for emergency maintenance

If you are renting out a condo, the condo corporation may require additional documentation, including board approval of the tenant. Some condo declarations restrict the number of units that can be rented at any given time. Our guide to renting a condo in Ontario covers the additional layer of rules that condo landlords face.

How Do You Price Your Rental Correctly in Today’s Market?

Price your rental by comparing recently leased units of the same type in your neighbourhood. Factor in Ontario’s rent control rules, which limit future increases to 2.1% for 2026 on most units. The right asking rent attracts qualified tenants quickly. Price too high and the unit sits vacant, costing you a full month’s rent for every month it stays empty. Price too low and you’re locked in, because Ontario’s rent control rules limit how much you can increase later.

Start by researching comparable active and recently leased listings in your neighbourhood. In the GTA, the CMHC Rental Market Report shows the overall vacancy rate rose to approximately 3% in 2025, up significantly from previous years. New purpose-built rental projects had vacancy rates approaching 7%. In the Niagara Region, vacancy rates have also softened, though rents remain well below GTA levels, which continues to attract relocating tenants.

Match Comparable Units Closely

Match property type, bedroom count, parking, and included utilities. A two-bedroom condo in Mississauga with parking and a locker commands a different rent than a walk-up apartment without parking. Details like in-suite laundry, a dishwasher, or a private balcony shift the asking rent in competitive areas.

Why Your Initial Rent Matters

For rent-controlled units, your initial asking rent is especially important. Once a tenant moves in, you can only increase by the annual guideline (2.1% for 2026). You would need an above-guideline increase from the LTB to go higher. Setting the right price from day one protects your income over the life of the tenancy.

How Do You Market a Rental Property in Ontario?

Effective rental marketing starts with professional-quality photos, a detailed listing description, and exposure on the platforms where tenants actually search. In Ontario, MLS is the primary platform for rental listings, and it syndicates to sites like Realtor.ca, Zillow, and Zolo.

Your listing description should cover the rent amount, lease term, bedroom and bathroom count, included utilities, parking, laundry access, and move-in date. Include the pet policy, keeping in mind that no-pet clauses are generally unenforceable under the RTA.

In competitive markets like Toronto, Mississauga, and Hamilton, well-priced units with good photos receive multiple applications quickly. In the Niagara Region, where supply is tighter for certain property types, marketing through MLS and local channels ensures the widest reach. Having a Realtor® handle the listing also means professional showings and a consistent screening process, which matters when you are evaluating several applicants at once.

How Do You Screen Tenants Legally in Ontario?

Ontario landlords can screen tenants using credit checks, income verification, employment confirmation, and landlord references. However, they cannot reject applicants based on any of the 17 protected grounds under the Ontario Human Rights Code. The Code sets strict boundaries on what you can ask and how you can use the information.

Tenant Screening Checklist

• Credit check with written consent (classified as a soft inquiry by TransUnion and Equifax as of November 2024)
• Proof of income: recent pay stubs, employment letter, or Notice of Assessment
• Employment confirmation: employer name, job title, length of employment
• References from two most recent landlords
• Government-issued photo ID for identity verification

What You Cannot Ask or Use to Reject an Applicant

• Race, colour, ancestry, ethnic origin, or place of origin
• Religion, creed, sex, sexual orientation, gender identity, or gender expression
• Family status, including whether the applicant has children
• Disability, including mental health conditions
• Receipt of public assistance (Ontario Works, ODSP)
• Age (with limited exceptions for designated senior housing)

A rigid rent-to-income ratio used as an automatic disqualifier can also violate the Human Rights Code. Landlords should consider income alongside credit history, rental references, and other available information. Rejecting someone solely because their income falls below three times the rent may constitute discrimination.

Thorough screening is your best protection against problem tenancies. It must be done correctly. Our guide to tenant rights and landlord obligations covers both sides of the process.

How Do Lease Offers Work in Ontario?

When a prospective tenant wants to rent your property, they submit an offer to lease. This written proposal includes the proposed rent, lease start date, lease term (typically 12 months), and any conditions. Conditions might include the landlord’s agreement to complete specific repairs before move-in.

Once both parties sign the offer to lease, it becomes a binding agreement. The tenant typically provides first and last month’s rent at this point. Make sure the deposit cheque or transfer is received and cleared before handing over keys.

The offer to lease is not the same as the Ontario Standard Lease. After accepting the offer, the landlord must prepare and sign the standard lease, which becomes the formal tenancy agreement. If the landlord does not provide the standard lease, the tenant can request it in writing. If the landlord still fails to provide it within 21 days, the tenant can withhold one month’s rent.

What Happens After You Accept a Lease Offer?

After both parties sign the offer, the next steps are straightforward but must be handled in order.

Post-acceptance checklist for landlords:

• Collect first and last month’s rent (and key deposit, if applicable)
• Prepare the Ontario Standard Lease with all correct details
• Complete a property condition report with the tenant, including dated photos of every room
• Provide the tenant with the landlord’s legal name and address for service (required under the RTA)
• Hand over keys and any access devices (fobs, garage remotes)
• Confirm utility transfer dates and responsibilities
• Provide condo rules and move-in procedures (if applicable)

A condition report protects both parties. Without one, disputes about damage at the end of the tenancy become difficult to resolve. We recommend both the landlord and tenant sign the report and keep a copy.

For additional terms like maintenance responsibilities, parking rules, or guest policies, see our guide on Ontario lease clauses that actually hold up.

What Are Your Responsibilities as a Landlord After Move-In?

Ontario landlords must maintain the unit in good repair, provide essential services, and give 24 hours’ written notice before entry. They must also follow strict rules on rent increases, receipts, and privacy. These obligations begin the day a tenant moves in and continue until the tenancy ends. These are not optional. Failure to meet them can result in LTB applications, fines, and rent abatements.

Key Landlord Obligations Under the RTA

• Maintenance and repairs: The unit must be kept in a good state of repair, fit for habitation, and compliant with all health, safety, and housing standards. This includes appliances provided with the unit.
• Essential services: Heat (minimum 20°C from September 15 to June 1 in most municipalities), water, electricity, and any other services outlined in the lease must be maintained at all times.
• Privacy and entry rules: A landlord must provide 24 hours’ written notice before entering. Entry is only permitted between 8 a.m. and 8 p.m. for specific purposes outlined in the RTA. See our guide to access and showings during a tenancy in Ontario for the full rules.
• Rent receipts: A landlord must provide a receipt for any rent payment, upon request.
• Annual rent increase notice: Rent can only go up once every 12 months with 90 days’ written notice on the N1 form. The increase cannot exceed 2.1% for 2026 unless the unit is exempt or the LTB approves an above-guideline increase.

If you are a condo landlord, your obligations also extend to ensuring the tenant follows the condo corporation’s rules and declaration. A tenant’s violation of condo bylaws can result in fines to the unit owner. Our guide to renting a condo in Ontario explains how the dual-layer governance works.

What Are the Risks of Renting Your Property in Ontario?

The biggest risks of renting in Ontario are non-payment of rent, property damage you cannot recover through a deposit, and LTB hearing delays. Damage deposits are illegal under the RTA, and removing a problem tenant is difficult. Landlords must understand these risks before listing. The most common risks include non-payment of rent, property damage, LTB delays, and the difficulty of removing a problem tenant.

Non-Payment and Eviction Delays

If a tenant stops paying rent, the landlord must file an L1 application with the LTB (filing fee: approximately $201). As of March 2025, L1 hearings were being scheduled within about three months. Other application types take five to seven months. During this time, the tenant may remain in the unit without paying. The LTB backlog stood at roughly 41,465 cases as of March 2025, down from a peak above 53,000.

Property Damage Beyond Normal Wear

Ontario does not allow damage deposits. A landlord’s only recourse for damage beyond normal wear is to file with the LTB after the tenant moves out. Recovering the cost of significant damage is difficult and not guaranteed. This makes the condition report at move-in critically important.

What Can Go Wrong If You Choose the Wrong Tenant?

Choosing the wrong tenant can mean months of lost rent and thousands in property damage. It also means a lengthy LTB process that consumes time and legal costs. We have worked with landlords who skipped income verification because the applicant seemed trustworthy. The applicant had misrepresented their employment. In another case, a Toronto condo board rejected a tenant after the lease was signed. The landlord had not checked the condo declaration first.

The cost of a bad tenancy in Ontario is not just financial. It includes the stress of managing disputes, the time lost attending LTB hearings, and the potential damage to your property. Thorough screening, proper documentation, and professional guidance significantly reduce this risk.

When Does Renting Your Property NOT Make Sense in Ontario?

Renting does not make sense when your carrying costs exceed realistic rental income. It also fails when you need the sale proceeds for your next purchase or cannot commit to landlord obligations. Here are the most common situations where selling is the better decision.

Negative Cash Flow

If your mortgage, taxes, insurance, and maintenance exceed the rent you can charge, you lose money every month. In parts of the GTA where values are high but rental yields are low, negative cash flow is common for condo investors. Running the numbers honestly before listing is critical.

Divorce or Forced Sale Situations

When a property must be sold as part of a divorce settlement, renting delays the process. If both parties need the equity released, a tenant adds months to the timeline. It also introduces LTB risk that neither party wants during a difficult transition.

Relocation Without Local Management

If you are relocating and cannot manage the property yourself, professional management adds cost. It reduces your net return. When Keith and I moved from Vaughan to St. Catharines in 2025, we saw firsthand how distance complicates property decisions. For clients making that same GTA-to-Niagara move, we always run the rent-versus-sell numbers before they commit to keeping a rental property behind.

High-Maintenance Properties

Older homes with aging systems (roof, furnace, plumbing, electrical) carry higher maintenance risk. If you are already facing major capital expenses, absorbing those costs while collecting rent may not make financial sense. A tenant can file a T6 maintenance application at any time. The LTB can order repairs the landlord must complete regardless of cost.

What Mistakes Do Ontario Landlords Make Most Often?

Many landlord problems are preventable. After working with landlords across the GTA and Niagara Region, we see the same mistakes repeatedly.

The Most Costly Landlord Mistakes

• Skipping the standard lease: Using a custom lease form instead of the Ontario Standard Lease creates unenforceable terms and gives the tenant the right to withhold rent.
• Collecting illegal deposits: Charging a damage deposit, pet deposit, or cleaning fee violates the RTA. The tenant can file with the LTB to recover the money, plus interest.
• Failing to screen properly: Relying on gut feeling instead of a documented process is the biggest predictor of a problem tenancy. Always run a credit check, verify income, and check references.
• Improper notice for entry: Entering without 24 hours’ written notice violates tenant privacy. It can result in a T2 application at the LTB.

Mistakes That Trigger LTB Applications

• Misusing N12 notices: Filing an N12 (landlord’s own use) without genuinely intending to occupy the unit is bad faith. The penalties are severe, including up to 12 months’ rent in compensation. For the full breakdown of N12 rules, see our guide on N12 notices in Ontario.
• Ignoring maintenance obligations: Delaying repairs does not save money. It creates T6 applications, rent abatements, and potential municipal orders.
• Not understanding rent control exemptions: Assuming your unit is exempt when it is not (or vice versa) leads to illegal rent increases and T1 filings.

How Do Residential Leases End in Ontario?

A residential lease in Ontario can end through tenant notice, mutual agreement, landlord’s own-use notice, or an LTB eviction order. A lease does not simply end when the term expires. Unlike many other jurisdictions, the RTA automatically converts a fixed-term lease to a month-to-month tenancy at the same rent unless either party takes specific action.

Ways a Lease Can End

• Tenant gives notice: A tenant on a month-to-month tenancy must give 60 days’ written notice, effective on the last day of a rental period. During a fixed term, the tenant can give 60 days’ notice effective on the last day of the term.
• Mutual agreement (N11): Both parties sign an N11 form agreeing to end the tenancy on a specific date.
• Landlord notice for own use (N12): The landlord or an immediate family member genuinely intends to move into the unit. Specific compensation and notice rules apply.
• Eviction through the LTB: For non-payment, illegal activity, or other grounds specified in the RTA, the landlord must follow the formal N-form and LTB application process.

Improper termination is one of the most common sources of LTB disputes. Both landlords and tenants benefit from understanding the correct process. Our guide on how residential leases end in Ontario covers every scenario. That includes notice periods, the N9 form, and what happens when a tenant refuses to leave.

If you are considering selling a property with a tenant in place, the process becomes more complex. The buyer’s rights, the tenant’s rights, and the timing of any N12 notice must all align. See our guide to selling a tenanted property in Ontario for the full breakdown.

What Is the Landlord and Tenant Board?

The Landlord and Tenant Board (LTB) is the provincial tribunal that resolves disputes between landlords and tenants in Ontario. It handles applications for eviction, rent arrears, maintenance orders, illegal charges, and above-guideline rent increases.

Landlords file applications (such as L1 for non-payment) online through the Tribunals Ontario Portal. The filing fee for an L1 application is approximately $201. Tenant applications (such as T1 for illegal charges) cost $53. All hearings are currently conducted virtually.

As of March 2025, the LTB had about 41,465 cases in its backlog. It had 133 adjudicators (81 full-time and 52 part-time). L1 applications were scheduled within about three months. Other types took five to seven months. Urgent matters like illegal lockouts were scheduled within five to six weeks.

The Ontario government passed Bill 60, the Fighting Delays, Building Faster Act, on November 24, 2025. It includes RTA amendments. As of April 2026, the implementation timeline for many changes has not been fully confirmed. We will update this guide as those provisions come into force.

Related Leasing Guides

Each of these supporting guides covers one specific topic in depth. Together with this cornerstone, they form our complete leasing resource for Ontario tenants and landlords.

• Tenant Rights and Landlord Obligations in Ontario: The full breakdown of what the RTA guarantees every tenant and requires of every landlord.
• Access and Showings During a Tenancy in Ontario: The 24-hour notice rule, permitted entry reasons, and how to handle showings when selling or re-renting.
• Renting a Condo in Ontario: How condo bylaws, declarations, and corporation rules affect your tenancy on top of the RTA.
• How Residential Leases End in Ontario: Notice periods, N-forms, mutual agreements, and the month-to-month conversion rule.
• N12 Notices in Ontario: Landlord’s own use, family use, and purchaser use evictions, including timing, compensation, and bad-faith consequences.
• Selling a Tenanted Property in Ontario: Buyer rights, tenant rights, vacant possession, and how to manage showings with a tenant in place.
• Illegal Lease Clauses in Ontario: Clauses that are void under Section 4 of the RTA and what happens when they are challenged at the LTB.
• Ontario Lease Clauses: Enforceable additional terms, grey-area clauses, and how to write lease terms that hold up.
• Renting in Ontario as a Newcomer: Credit history challenges, required documents, and how newcomers can strengthen their rental applications.

Ontario landlord and tenant law can change. This article reflects legislation and procedures as of April 2026 and is for general informational purposes only. Bill 60 (Fighting Delays, Building Faster Act, 2025) has been passed but certain RTA amendments may not yet be in force. Confirm current rules and obligations with a qualified legal professional before making decisions.