Renting a home in Ontario has its clear rules and responsibilities for both landlords and tenants. At the heart of every rental arrangement is the Ontario tenancy agreement, also known as an Ontario lease agreement. This document is not just a piece of paper, it is a legal contract that sets out your and your tenants’ rights, obligations, and expectations under the Residential Tenancies Act (RTA). 

Since April 30, 2018, Ontario requires landlords of most residential units to use the standard lease form. The goal is to ensure clarity, fairness, and consistency across the province.  

What Is an Ontario Tenancy Agreement? 

An Ontario lease agreement is a legal contract between a landlord and a tenant used in Ontario, Canada. It defines the names of both parties, the property that will be rented, the amount of rent pay, due dates, and the rules and conditions of the tenancy.  

There are two common forms of Ontario tenancy agreement. A fixed-term lease usually runs for twelve months, giving both landlord and tenant a clear timeline. At the end of the term, the agreement automatically converts into a month-to-month arrangement unless both sides decide to renew with a new contract. On the other hand, a month-to-month tenancy doesn’t have a set end date. It continues until the landlord or tenant give a  proper legal notice to end it. 

The Standard Lease Form

Ontario standard tenancy agreement is a government-issued form that landlords need to use in most residential rental situations. This may include houses, apartments, condominiums, and secondary units such as basement apartments. The purpose of the form is to provide consistency, reduce disputes, and ensure that both tenants and landlords clearly understand their rights and responsibilities. 

However, there are some exceptions to this requirement. Care homes, such as retirement residences and nursing homes, are not required to use Ontario lease agreement. Social housing providers, sites in mobile home parks or land lease communities, and certain forms of co-operative housing also don’t use this form. 

The form itself can be downloaded for free from the Government of Ontario website. The landlord should give a copy of Ontario tenancy agreement to the tenant within 21 calendar days. If the landlord fails to do it, the tenant can legally withhold one month’s rent.  

Key Sections In Ontario Tenancy Agreement 

The standard lease is divided into several important sections. It begins with identifying the landlord and tenant by full legal names. You need to describe the rental unit in detail, including the address and the apartment or unit number if applicable. 

Then you need to state the terms of the tenancy, making clear whether it is fixed-term or month-to-month. Next comes rent information. It covers the exact amount, when it must be paid, and how it will be paid: by cheque, electronic transfer, or another method that you have agreed upon. The lease also records any rent deposit. In Ontario, only a rent deposit equal to one month’s rent is permitted. Landlords cannot demand additional deposits for things like damage or cleaning. 

Another essential part of the Ontario tenancy agreement is the section on services and utilities. Here, you need to specify whether rent includes items such as water, heat, parking, or internet. If you fail to define these details, it can easily lead to disputes later. Ontario lease agreement also includes rules about pets, smoking, and guests.  

You need to be careful when completing the deposit section. Pay attention to the fact that you can collect only the last month’s rent. Next is the section of standard terms that apply automatically. 

Once you have completed the details you and your tenant need to sign and date the agreement, and each side must keep a copy of their records. Today, many landlords and tenants choose to use digital platforms such as royalinvest.ca to draft sign and track the Ontario tenancy agreement online. These electronic Ontario lease agreements are fully valid in Ontario, and make the process more efficient and secure. 

Rights and Responsibilities 

Ontario tenancy agreements are designed to balance the rights and duties of both landlords and tenants. 

Landlords have the right to collect rent on time and to enter the rental unit for repairs, inspections, or showings. However, they need to give twenty-four hours’ written notice before coming. They are responsible for maintaining the property in good condition, ensuring it meets health and safety standards. 

Meanwhile, tenants should pay rent on time and keep the unit reasonably clean. They are entitled to privacy and what the law calls “quiet enjoyment” of their home. This means that they should not be disturbed unnecessarily by the landlord.  

It is also important to understand what you cannot include in a lease. Certain clauses are automatically considered void. For example, a blanket “no pets” clause is not mandatory unless the pet causes problems such as allergies, damage, or violations. Landlords cannot charge deposits beyond the lawful rent deposit, and they cannot restrict guests or visitors. 

Common Mistakes to Avoid 

One of the most common mistakes landlords make is using outdated lease templates instead of the official standard lease. This can create many legal problems. Another frequent issue is the use of illegal clauses, such as requiring tenants to professionally clean carpets. 

Landlords sometimes ask for deposits beyond the last month’s rent, which is also illegal. Others fail to clearly list which utilities are included in the ren. Sometimes, both landlords and tenants forget to keep a signed copy of the lease agreement, which can make it difficult to resolve disputes later. 

Free Vs Royalivest.ca: Which One to Choose? 

Many landlords wonder why they should pay to platforms like royalinvest.ca when the Ontario standard lease form is available for free from the government. Yeah, it’s true that you can fill out and download a basic PDF at no cost.  

On the other hand, royalinvest.ca makes everything easier. With online version of Ontario tenancy agreement by royalinvest.ca, you can fill out, sign and share for signature with your tenants.  On top of this is that you can track the signing process. This means that you can see when your Ontario lease agreement is signed and ready.

There will be no need to pay high fees to Adobe or similar tools to only sign the lease agreement, as with royalinvest.ca you can complete your lease at a low price. Another advantage of royalinvest.ca is that it guides you and your tenant through the signing process. This feature ensures that your tenant will not miss a signature. If your tenancy agreement has an addendum or annex royalinvest.ca ensures that you and your tenant can easily sign it.

Finally, royalinvest.ca saves time and stress. From drafting to signing and tracking, everything happens on one platform. You won’t need printing, scanning or face-to-face meetings.   

Make renting simple and stress-free by using a lease that’s compliant with Ontario law.